Last week your BIA Southern California Government Affairs team visited Sacramento for the CBIA Winter Meetings. We were joined by Michael Battaglia (CalAtlantic Homes), Tom Grable (TriPointe Homes) and Alan Boudreau (Boudreau Pipeline) from our BIASC Executive Committee among other members. Some highlights from the trip included a legislative update from Assemblyman Tom Daly (Anaheim) and the annual Legislative Reception.
We received a comprehensive Government Affairs update from our CBIA team and to be candid, the challenges our industry is facing from Sacramento are daunting. As currently written, AB 199 would require prevailing wage rates for all residential construction in California.
Conservative estimates are that prevailing wage requirements would add approximately 40% to the construction costs for new communities. The Southern California housing market simply cannot absorb that cost impact given the affordability crisis that already exists today. AB 199 would stunt the initiation of many new communities and further reduce housing supply overall. Our industry is firmly opposed to AB 199, stand by for more information.
Challenges remain with the on-going planning for the 2020 Energy Code. The California Energy Commission is now acknowledging publicly that Zero Net Energy homes are not yet reasonably feasible. The State will be moving to ZNE ready regulations.
Threats also loom regarding legislation to further reduce greenhouse gas emissions in California including a major increase to the gas tax and the potential for establishing "vehicle miles traveled" as a significant environmental impact under CEQA. These policies are most damaging to those who work in the coastal regions but seek cost attainable housing in the inland and Central Valley areas of the State out of necessity.
On a lighter note, a series of fantastic events are just ahead for our members. We will be continuing discussion on the economic landscape with the Greater Sales & Marketing Council's (GSMC) 2017 Builder Perspective event tomorrow at the Tustin Community Center.
In the upcoming weeks we are looking forward to BIA Los Angeles/Ventura Chapter's Public Officials Night on February 23rd; BIA Baldy View Chapter's Legislative Luncheon on February 28th; BIA Baldy Chapter and BIA Los Angeles/Ventura County Chapter's co-branded "Meet the Builder" on March 2nd; BIA Riverside County Chapter Legislative Affairs Committee Luncheon on March 3rd; California Homebuilding Foundation (CHF) SoCal Celebrity Waiter Event on March 10th; and the BIA Mayor's Luncheon in the Coachella Valley on March 16th.
We look forward to seeing you at the upcoming events! Interacting with elected leaders and fellow members is pivotal to our success! Thank you for your support!