California lawmakers again push through labor conflict to pass affordable housing bills

California lawmakers for the second year in a row pushed through union conflicts to pass a package of bills intended to promote the construction of thousands of new affordable homes in the state.

The Legislature on Monday night approved Senate Bill 4 and Senate Bill 423, both authored by Sen. Scott Wiener, D-San Francisco. They now go to Gov. Gavin Newsom for a signature or veto.

This is the second year lawmakers have waded through labor union disputes to pass bills streamlining housing construction in a state that suffers from chronic lack of affordable places to live.

For a time, the powerful State Building and Construction Trades Council of California stymied measures that allow developers to circumvent local government approval processes to build housing. The trades have pushed for provisions requiring “skilled and trained” or union workers, which some builders say makes construction to expensive.

Last year, Assemblywoman Buffy Wicks, D-Oakland, worked with Sen. Anna Caballero, D-Merced, and the California Conference of Carpenters to pass bills easing housing production in commercially-zoned areas.

The carpenters embraced a labor standard that guaranteed prevailing wage, bringing them into conflict with the trades, which wanted union hiring guarantees.

This year, the carpenters built on their collaboration with Wicks to back SB 4 and SB 423, which again put them at odds with the trades.

Wiener on Thursday told The Sacramento Bee he is “hoping that we’re coming out the other side” of the period of labor strife.

“I think sometimes when you have policy disagreements, for better or for worse, there is often a period of time of fighting with some level of chaos,” Wiener said. “And then out of that chaos comes order and a resolution, and that’s what happened here.”

SB 4

SB 4, nicknamed the “Yes In God’s Backyard” bill, lifts restrictions on churches, faith institutions and nonprofit colleges to be able to build affordable housing on their land without expensive and difficult rezoning processes and or running afoul of the California Environmental Quality Act, or CEQA.

Under SB 4, any organization building housing on their land must maintain the affordability of those homes for no less than 55 years for rental properties and 45 years for owner-occupied properties.

According to UC Berkeley’s Terner Center, there are an estimated 171,000 acres of land owned by religious institutions in the state that would be eligible for affordable housing.

SB 4 passed out of the Senate Monday night with 32 yes votes and just two no votes — from senators Brian Dahle, R-Bieber, and Kelly Seyarto, R-Murrieta. It also passed out of the Assembly last week 73-1, with Assemblywoman Marie Waldron, R-Santee, voting no.

SB 423

SB 423 extends existing legislation by Wiener (2017’s Senate Bill 35) aimed at streamlining the process for approving affordable projects; that measure is set to expire in 2025, but would be extended if SB 423 becomes law.

SB 423 had a rocky path, with labor groups initially opposed because it called for prevailing wages rather than the use of “skilled and trained” (predominantly union) workers.

The bill was later amended to require “skilled and trained’ workers in steel-frame tall construction projects, provided that the project received at least three qualified bids.

With union backing, including the California Conference of Carpenters, the bill handily made it through the Senate, 27-7, and the Assembly, 61-8.

This story was originally published September 12, 2023 at 10:59 AM.