A builder in a wealthy South Bay community agreed to a strict union-hiring standard to take advantage of a new housing law. Then it tried to change the deal.
Upon taking over the project last year, PulteGroup’s legal team made the case to the city of Saratoga that state law does not obligate the company to abide by the union-backed standard imposed on mixed-income projects, according to emails shared with CalMatters. The city disagreed.
Developers are subject to state fines of up to $10,000 per month for each missing monthly compliance report. If a company is found to be skirting the “skilled and trained” standard entirely, the penalties can rack up much higher and much quicker: $200 per day “for each worker employed in contravention” of the rule.Walsh did not respond to an email from CalMatters.
But as the letter from the city of Saratoga to Pulte suggests, the true number of projects that have moved forward under the controversial rule might not be one. It could be zero.Under the 2017 streamlining law authored by San Francisco Democratic Sen. Scott Wiener, developers are offered a trade: Construction teams work at the Quito Village Development Project in Saratoga on Apr. 13, 2023. Photo by Martin do Nascimento, CalMatters
Saratoga falls into the second bucket. As planned, 10% of the townhomes at Quito Village will be provided at below-market rates.
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