Written by Amanda Williams
It seems that the strictest environmental regulations originate in California and then migrate across the country. However, one of California’s creations is now severely backfiring and aggravating the ongoing housing crisis.
Known as the California Environmental Quality Act (CEQA), the act’s purpose was to force government agencies to look into the substantial environmental impacts of state-endorsed development projects. Furthermore, if substantial impacts were present, the agencies were obligated to reduce the impacts before beginning a project.
Yet, since its creation in 1970, the jurisdiction of the law has exponentially grown; it now ranges from private developments to any building permit that goes beyond local zoning codes. Moreover, the exhaustive list of environmental impacts that are required to be studied grew substantially. Besides air quality and wildlife populations, the consequences of greenhouse gas emissions and cultural pieces-such as artifacts, fossils, or historic buildings-must also be taken into account.
So, why does the CEQA hold such significance for the housing crisis? Labor unions, such as Southwest Regional Council of Carpenters (SWRCC), are abusing this act in order to force development companies into employing all union workers. Known as green-mailing, the practice allows unions to enter unnecessary environmental complaints, under CEQA, towards projects with little or no cost to them. In addition to the low cost, the threat alone of a potential legal battle serves as a strong enough deterrent for new housing projects.
Furthermore, the practice of green-mailing creates a ripple effect; not only does it prolong the construction of new housing, it also increases the development cost due to the absurdly high union wages. Consequently, renters and homeowners are then responsible for paying the pointless costs- when purchasing housing-making the price to live in California even more unaffordable.
The most popular culprit of green-mailing, SWRCC, has targeted numerous housing projects in the Los Angeles area since 2017. Yet, as of recently, the SWRCC has been called out for their wrongful behavior. Icon, a development company, has countersued the SWRCC for breaking anti-racketeering laws after receiving environmental complaints from them. As a result of the complaints, Icon has lost millions of dollars due to the delays-only highlighting the detriment labor unions are inflicting upon companies and the housing market as a whole.
If labor unions, such as the SWRCC, continue their practice of green-mailing there will not be much hope for California digging itself out of its housing crisis.
