California Can Build Affordable Housing Faster By Keeping the Cash Flowing To Construction Contractors For Materials & Labor on Private Projects

SACRAMENTO – At a critical time as the state of California scrambles to build more privately financed affordable housing, and rebuild from the devastation caused by fires in Southern California, state Senator Dave Cortese’s Senate Bill 61 would fast track payment of money due to construction contractors and subcontractors for work performed by reducing the amount of retention payments withheld from 10 percent to 5 percent.  The Assembly Judiciary Committee today passed the bill.

“This will help small business owners and minority contractors working on private projects keep the cash flow going for materials and labor just like its public works counterparts,” said California State Senator Dave Cortese, a longtime advocate for labor.

BACKGROUND:

• More than 20 states including Oregon, Nevada and New York have also signed into law five percent retention caps for private projects.
• In California, recent legislation is making it easier for privately financed affordable housing developments to move forward. The makes SB 61 even more critical.

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