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Newsom signs law prompted by Berkeley housing projects that dodged labor standards

The measure closes a loophole that let two Berkeley projects avoid apprenticeship, health coverage and prevailing-wage rules, supporters said.

  • On Wednesday, Gov. Gavin Newsom signed legislation requiring large developments to comply with local labor standards, restricting how builders use California's density bonus program to bypass apprenticeship programs and health care coverage.
  • Laconia Development and Collab Home used the density bonus law to exempt a 23-story project at 2029 University Ave. and a 20-story building at 2425 Durant Ave. from Berkeley labor mandates, a practice supporters termed a 'loophole.'
  • The law, authored by Sen. Jesse Arreguín, blocks developers of projects at least 85 feet tall from claiming density bonus exemptions, ensuring housing supply increases do not compromise worker health or safety.
  • Although the legislation limits future exemptions, it will not affect the two Berkeley projects that prompted the change, as the Berkeley City Council already granted them permits earlier this year.
  • While the new law tightens restrictions for tall buildings, the loophole remains partially open for smaller developments; projects measuring less than 50,000 square feet may still utilize the density bonus to avoid local health and apprenticeship requirements.
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Winnipeg Free PressWinnipeg Free Press
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Newsom signs law prompted by Berkeley housing projects that dodged labor standards

Two Berkeley housing projects that used a powerful state program to exempt themselves from local labor mandates have inspired a new law barring future developments from following their playbook.

·Winnipeg, Canada
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Berkeleyside broke the news on Friday, October 2, 2026.
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