New Pismo Beach PLA Threat. Budget Released to Defeat Santa Barbara County PLA on August 17th

We warned them.
Proposition HHH is a $1.2 billion bond earmarked for the development of up to 10,000 units of affordable and permanent supportive housing aimed at addressing chronic homelessness in Los Angeles. As of May 2021, with virtually all funding committed, approximately 7,300 units of housing were in the pipeline. But unions and PLA proponents (the entire L.A. City Council) failed to meet the ambitious original goals in part because of higher-than-expected construction costs.
One potential reason for increased costs is a project labor agreement (PLA) added by the city council after the initiative was passed. As usual PLA proponents did not include the highly controversial PLA before voters approved the measure for fear of losing at the ballot box. So big labor special interests in L.A. had their bought and paid for politicians do their dirty work for them AFTER the bond was approved.
The RAND Corporation has now conducted a study that presents evidence that the HHH PLA increased construction costs on affected projects by approximately 15 percent. Additionally, developers responded to the PLA by disproportionately proposing smaller projects that would not fall under the agreement. A simulation exercise considering these effects together estimated that approximately 800 more units of housing would have been produced in the absence of the agreement.
This evidence is just the latest in a long list of comprehensive studies that show PLAs reduce competition via discriminatory provisions and thus raise costs. These studies can be found here.
You can read the RAND report here:
RAND Study Shows PLA Increased Costs and Resulted in
Fewer Affordable Housing Units Being Built
Source: Coalition for Fair Employment in Construction – PO Box 1627, Poway, CA 92074

Get Headlines free  SUBSCRIPTION. Keep us publishing – DONATE

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments