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union labor requirement, the cost to build market-rate housing will become prohibitive in Santa Ana, especially because a similar project will have lower labor costs across the city line in Irvine or Costa Mesa, where rents are actually higher. Perhaps some would see the reduction in market rate housing development in Santa Ana as a positive outcome. However, those market rate developments bring in-lieu fees paid to the city to help defray the cost to build affordable housing for lower income households, and it is those market-rate developments paying in-lieu fees that are targeted by this union labor requirement in the HOO. The City of Santa Ana is counting on those fees to serve as the local matching funds when affordable housing projects compete for the tax credits that fund their development. If no new market-rate housing is built, no new fees are paid, and the city has no funds with which to compete. Lastly, in cities with union labor requirements for all residential projects, it takes longer to approve new housing and rates of homelessness are higher. While these relationships are not causal, their correlation is noteworthy. To be clear, I am not contesting paying union-level wages on housing projects that are subsidized with public funds; this policy is already required. Nor am I opposing monitoring construction sites to ensure safe working conditions and preventing wage theft; compliance with Cal/OSHA regulations and workers' compensation policies are critical. I am pushing back against the city bestowing a "most favored status" upon union contractors when there is already a shortage of construction labor, and there are not enough workers to elicit multiple bids from union shops. Project contracts oR\�F0R No,,,� W 2 Fighting for a future of abundant housing in Orange County a c+ peopleforhousing.org 2 Orange County