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Due to misclassified occupations in the State, construction workers earned a median wage of just $14.98 in 2017. Overall one-third of these were misclassified and two-thirds were being paid under the table. Latinos dominate the residential sector, comprising 2/3 of the workforce and a disproportionate share of the workers in residential construction are undocumented immigrants13% nationally in 2014 who may fear reprisals for speaking up for their rights. In California, 48% of construction working families are significantly more likely to participate in safety net programs compared to the 36% of all other working families. Construction working families participate at higher rates in each of the five programs individually as well. This translates as a large subsidy paid for by the taxpayers of the State. Given that direct construction labor comprises only 15% of project development costs and construction worker payroll growth has lagged industry price & profit growth, the housing industry has room to absorb wage increases for the men and women building the housing. Providing Labor Standards through Apprenticeship requirements such as Skilled and Trained Workforce and Prevailing Wages productive capacity. In collaboration with our signatory Employers we invest $200 Million a year into our Joint Labor Management Apprenticeships. It is why we graduate well over 90% of the Journey level workers in construction among the State Certified Apprenticeships. We have also invested in Santa Ana via our Apprenticeship Readiness Program. We have partnered with Rancho Santiago Community College District at Santa Ana College Continuing Adult Multi Craft Core Curriculum Course (MC3). We have placed many students that have successfully completed the course into our Apprenticeship Training Centers offering them a pathway to the middle class in careers in construction. We have also partnered with Santa Ana Unified School District offering the MC3 at Century High School. This Because housing affordability amongst blue collar construction workers is also declining particularly amongst workers of color in high cost metropolitan and coastal regions incorporating apprenticeship standards into a housing development streamlining package is a reasonable and cost- effective approach for boosting overall supply while helping to close the affordability gap for hundreds of thousands of California families. So again, we urge that you work with the Los Angeles and Orange Counties Building and Construction Trades Council, its affiliates and associated construction trades to strengthen the labor language in the Housing Opportunity Ordinance, as it was originally proposed unanimously by the Planning Commission last year. Respectfully, Ron Miller Ernesto Medrano Executive Secretary Council Representative RM/EM/:ag.opeiu#537/afl-cio Ћ