Berkeley City Council Approves High-Rise Developments Amid Labor Standards Controversy

On February 24, 2026, the Berkeley City Council approved two high-rise developments that will utilize California's "density bonus" law, allowing them to bypass local labor standards established by the city's 2023 HARD HATS ordinance. This ordinance mandates that large construction projects provide health care coverage and apprenticeship programs for workers. The approved projects include a 20-story complex at 2425 Durant Avenue by Collab Home and a 23-story building at 2029 University Avenue by Laconia Development.

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Developers Collab Home and Laconia Development argued that adhering to the HARD HATS ordinance would significantly increase their costs—by over $5 million for the University Avenue project and $16.6 million for the Durant Avenue project, primarily due to prevailing wage requirements. They contended that the density bonus law grants them the authority to bypass these local mandates, which they claimed could jeopardize the feasibility of their projects.

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Labor groups, including the Building and Construction Trades Council of Alameda County and the Northern California Carpenters Regional Council, opposed the developers' use of the density bonus law. They argued that the law was intended to facilitate affordable housing, not to undermine labor standards. Union members staged protests leading up to the council meeting, asserting that the local labor standards were essential for ensuring fair wages and training opportunities for workers.

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During the council meeting, some members expressed sympathy for the labor groups but ultimately felt constrained by the state law. Councilmember Rashi Kesarwani noted the city's reluctance to engage in potentially costly litigation against the developers. Councilmember Igor Tregub articulated his moral opposition, stating, “I cannot in good conscience support housing that will be built on the backs of the workforce.” Despite these sentiments, the council approved the Durant Avenue project with a vote of five in favor, while the University Avenue project failed to garner enough support, resulting in no action taken.

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In light of the council's decision, State Senator Jesse Arreguín, who previously championed the HARD HATS ordinance, expressed disappointment and indicated he might introduce legislation to amend the state density bonus law to prevent similar situations in the future. The council's actions have raised concerns about the potential for other developers to exploit the density bonus law to evade local labor standards.

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• “I can afford to live in Berkeley, [which] I love, because I’ve been given these opportunities through apprenticeships, through a living wage, through health care,” — Stephanie Lind, Carpenter

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• “The original legislative intent of the density bonus law was to allow developers to build more affordable units as a social good,” — Jolene Kramer, Attorney for the Building and Construction Trades Council

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• “Approval, in this instance, is mandatory,” — Todd Williams, Attorney for the Developers

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While developers provided estimates of the financial impact of complying with the HARD HATS ordinance, union officials disputed these figures, claiming they exaggerated the true costs. This discrepancy highlights the ongoing debate over the implications of the density bonus law and its interaction with local labor standards.

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