ON WHY OBBBA IS A FUB* — A CALL FOR RESPONSIBLE INVESTMENT IN OUR IMMIGRANT NATION

**Written by Will Wright

On July 4th, the One Big Beautiful Bill Act (OBBBA) was signed into law.  These are my personal reflections on its potential impacts, especially as it relates to exacerbating further division in our nation and disruptions in our communities.

As we strive to uphold the core value of human dignity, strengthen our communities, and celebrate that we are a great nation forged by the power of immigrants, we must also strive to uphold the core values fiscal responsibility and strategic investment.

As we reflect on our nation’s foundational ideals, we reaffirm that democracy is not a static inheritance but a vibrant, continually constructed endeavor. It thrives in our shared spaces, in the dignity we extend to every individual, and in the unwavering belief that this nation is home to all who choose to build their lives here.

At our core, the United States is a nation of immigrants. From its very inception, our country has been shaped and strengthened by generations who arrived seeking opportunity, freedom, and safety. Los Angeles stands as a living testament to this truth, a mosaic built by the hands and dreams of people from every corner of the globe. The individuals who design, build, maintain, and sustain our neighborhoods are not merely participants; they are the essential threads woven into the very fabric of our city. When fear silences these voices, when neighbors vanish from our streets and families retreat from public life due to anxiety, our collective humanity is diminished. These are not abstract concerns; they directly impact the functionality of our communities, the vibrancy of our job sites, and the fundamental sense of safety and openness in our public spaces.

As stewards of the built environment, we believe our work is not just about erecting structures, but about upholding the values embedded within those structures: equity, inclusivity, and universal access. When these promises are threatened, we have a professional and civic responsibility to speak clearly and stand firmly. Our civic duty calls us to embrace the enduring core values of our nation, to reclaim the narrative of a great, thriving democracy that celebrates its strength through diversity.

In this spirit, we must commit to learning from our past, acknowledging hard truths and injustices, not to dwell in shame, but to foster deeper understanding and progress. This also compels us to be better stewards of our planet, to conserve natural resources, limit extraction, and strive for equitable access to clean air, water, and unspoiled land. Crucially, this includes learning from the profound, millennia-old wisdom of Indigenous cultures, who have long demonstrated sustainable relationships with the land and invaluable insights into living in harmony with natural ecosystems.

We must invest in people, not barriers. Imagine the courage, stamina, and resilience it takes for a family to walk thousands of miles seeking a better life. We should not fear this vitality; we should celebrate and welcome it with open arms. Our alarm is profound regarding the recently passed budget reconciliation bill, the One Big Beautiful Bill Act (OBBBA), which, as reported by the American Immigration Council, earmarks an unprecedented $170 billion for immigration and border enforcement. This staggering sum includes $45 billion for new detention centers (a 265% increase to ICE’s current budget), $29.9 billion for ICE enforcement and deportation operations (tripling its annual budget), and $46.6 billion for border wall construction. Such a colossal investment in punitive measures, including a new $10 billion “slush fund” for U.S. Customs and Border Protection, stands in stark contrast to our nation’s stated ideals and the desperate need for humane, effective solutions. As Nayna Gupta of the American Immigration Council states, this short-sighted approach “does nothing to address the systemic failures of our immigration system while inflicting harm, sowing chaos, and tearing families apart,” and alarmingly, comes at the expense of stripping healthcare from between 12 million and 17 million people.

Furthermore, we cannot ignore the devastating and destructive impacts that recent immigration enforcement raids have had on our communities. These actions sow fear, tear families apart, disrupt local economies, and undermine public trust. They create instability in our neighborhoods and on our job sites, contradicting the very principles of safety, community, and belonging that we champion. The premise is clear: it is far more effective and humane to invest in programs that enhance the dignity of humans than in those that disrupt and divide communities. Instead of squandering billions on walls, detention camps, and futile postures of hostility, let’s redirect those vital resources into education, infrastructure, economic and workforce development programs, and diplomacy. Consider this: the estimated $45 billion allocated for new detention centers could instead fund transformative programs that allow all residents of the U.S.A. to travel the world, fostering invaluable exposure to new cultures, traditions, and global perspectives. This investment in international exchange and understanding would not only enrich individual lives but also strengthen our nation’s diplomatic ties and global standing. Human compassion is not only a moral imperative but also a profound economic development engine that attracts the courageous and resilient spirits our nation needs to thrive.

The concerns surrounding OBBBA extend beyond its immigration provisions, carrying significant implications for the real estate sector.  While the bill may offer some positive impacts for real estate, such as extended 100% bonus depreciation, an increased Qualified Business Income (QBI) deduction, higher estate and gift tax exemptions, renewed Qualified Opportunity Zone (QOZ) incentives (especially for rural investments), and an enhanced Low-Income Housing Tax Credit (LIHTC), these potential benefits must be weighed against substantial risks. As highlighted by the Committee for a Responsible Federal Budget, this legislation represents a “massive fiscal capitulation” and is projected to add $4.1 trillion to the national debt through 2034, potentially rising to $5.5 trillion if temporary provisions are made permanent. Such an unprecedented increase, pushing the national debt to 127 percent of the economy by 2034, is reckless and demonstrates a disregard for our fiscal outlook. This dramatic increase in national debt inherently carries the potential for higher interest rates, which would directly impact the real estate market by increasing borrowing costs for developers and homebuyers alike, potentially offsetting some of the bill’s intended incentives. Furthermore, the bill’s significant cuts to clean energy tax credits could negatively impact the financial feasibility of sustainable real estate projects, while its potential to reduce Medicaid funding may indirectly hinder access to affordable housing options by impacting states’ ability to fund critical home and community-based services.

So while OBBBA’s long-term impacts on the architecture, engineering, and construction (AEC) industry remain uncertain, its immediate impact on immigration enforcement will continue to severely disrupt the building trades, especially in the Los Angeles area. Let it be clear: the positive impact of immigration reverberates across our society, and we need to invest in programs that attract more immigrants (not less). We need federal budget bills that facilitate more effective immigration policies, policies that recognize the value, purpose, and dignity of human resources. In the AEC industry, immigrants fill critical labor gaps, bringing diverse skills and perspectives that drive innovation and enhance project delivery. They are the backbone of our construction workforce, essential to building the homes, schools, and infrastructure our communities desperately need. In our institutions of higher learning, immigrant students and scholars enrich our academic discourse, contributing groundbreaking research and fostering a dynamic intellectual environment that positions the U.S. at the forefront of global innovation. Across society in general, immigrants infuse our communities with cultural richness, entrepreneurial spirit, and a renewed sense of purpose, creating vibrant neighborhoods and driving economic growth.

We celebrate our country as a symbol of endurance, perseverance, resilience, and strength. In this crucial moment, let us unite in spirit, uplift all with dignity and purpose, and honor the vital role immigrants play in continually building and strengthening our beautiful nation. This strength, however, must be built on a foundation of both human compassion and sound fiscal responsibility, ensuring a truly resilient and prosperous future for all.

*FUB = Fat Ugly Bill.

**Disclaimer: The advice and perspectives shared here belong to the author and should not be considered official recommendations from AIA Los Angeles.

Recommendations for Improving LADWP Development Services

On Wednesday, June 25 (12pm), AIA Los Angeles hosted our quarterly meeting with LADWP to hear the latest status update about the following:

I. Olympic preparations and possible impacts
II. LADWP Process Improvement Efforts
III. Staging Requirements for Transformer Pads a. Clarification and Public Notice

We’re grateful for the leadership of LADWP’s Paul Habib, LIGA Director & Janelva Williams, LIGA Coordinator/Liaison, for helping us coordinate these quarterly meetings and improving and increasing our capacity for collaboration.

As architects deeply invested in the equitable and efficient development of Los Angeles, AIA Los Angeles recognizes the critical role LADWP plays in shaping our built environment. Our recent discussions highlight several areas where enhanced clarity, transparency, and streamlined processes are essential to support housing development, especially in a city grappling with a severe housing crisis and ongoing climate challenges. We offer the following recommendations for improving LADWP’s development services:

I. New Staging Requirements for Transformer Pads: Clarification, Consistency, and Feasibility

Issue: Unannounced implementation of new, significantly larger staging requirements for transformer pads, coupled with unclear standards for evolving circuit voltages.

Challenges:

• Lack of Public Notice & Transparency: New requirements have been implemented without formal public notice or clear publication, creating confusion and uncertainty for ongoing and new projects.
• Compliance with SB 330: The subjective nature and increased spatial demands of these new requirements raise concerns about compliance with SB 330, which prohibits new subjective standards that reduce housing development feasibility post-January 1, 2020.
• Design and Financial Impact on Projects:
  • Infeasibility on Small/Infill Lots: The “clear to sky” requirement for staging areas significantly limits potential locations, especially with overhead lines, making development on narrow or already constrained urban infill parcels incredibly challenging, if not impossible. San Diego’s approach (allowing working clearance in the public right-of-way) offers a more flexible model.
  • Elimination of Alley Staging: Increasing the minimum staging area to 22′ x 42′ effectively removes the ability to stage in typical 20′ alleys, a common and critical option for dense urban sites. This will hinder development in many areas designed with alleys for utility access.
  • Retroactive Application Risk: Uncertainty regarding how these increased requirements will be applied to projects already deep into construction or with previously approved LADWP plans (e.g., 5 years ago) creates significant financial and timeline risks.
• Lack of Clear 12kV Standards: With the apparent phase-out of the 4.8kV circuit in West Los Angeles, the absence of clear room dimensions and requirements for 12kV stations creates significant design and construction delays.

Recommended Solutions:

1. Immediate Public Clarification & Documentation: LADWP must immediately publish and widely disseminate detailed, formal documentation of all new staging requirements, including specific dimensions for 12kV stations. This information should be readily accessible on the LADWP website.
2. SB 330 Compliance Review: Conduct an immediate review of all new staging requirements to ensure full compliance with SB 330. Any requirements found to reduce housing development feasibility must be justified by clear, objective, and publicly vetted standards that do not contradict state law.
3. Flexible Staging Area Design Standards:
   • Reconsider “Clear to Sky”: Re-evaluate the “clear to sky” requirement for staging areas and explore alternative approaches, such as allowing working clearance within the public right-of-way (similar to San Diego’s model), to enable development on smaller or more challenging urban infill sites.
   • Retain Alley Staging Feasibility: Reconsider the proposed increase to 22′ x 42′ for staging areas. Maintain dimensions that allow for staging in existing 20′ alleys, which are crucial for urban development.
   • Grandfathering Clause: Implement a clear policy to grandfather in projects that have already received approved LADWP plans or are substantially into construction, ensuring new requirements do not retroactively invalidate existing approvals or create undue financial burdens.
4. Explore On-Site Primary Wire Shielding: Investigate and implement the use of shielding for high-voltage primary wires during transformer installation (e.g., orange sleeve shields as seen in Pacific Palisades). This could significantly increase flexibility for transformer placement and staging, especially for single, infrequent installations.
5. Proactive Standard Development for 12kV: Immediately publish clear, comprehensive design standards and room dimensions for 12kV customer stations to support ongoing and future development projects.

II. Ratepayer Impacts & Operational Efficiency: Transparency and Responsiveness

Issue: Lengthy LADWP processing times, lack of transparent communication regarding rate increases, and difficulty in accessing key personnel contact information.

Challenges:

• Project Delays & Cost Overruns: Protracted LADWP processing times (due to potential staffing shortages, work-from-home schedules, etc.) contribute significantly to project delays and increased costs for housing developments, impacting affordability.
• Uncertainty for Ratepayers: Lack of clear, upfront information on anticipated rate increases creates uncertainty for developers, residents, and businesses, hindering long-term planning and financial projections.
• Communication Bottlenecks: Difficulty in obtaining direct contact information for various LADWP services and key personnel creates communication bottlenecks, slowing down issue resolution and project progression.

Recommended Solutions:

1. Transparent Communication on Rate Increases: Provide timely and detailed information on any anticipated rate increases, including the expected percentage or amount, well in advance of implementation, to allow for better planning by developers and ratepayers.
2. Publicly Address Processing Timelines: LADWP should publicly articulate the root causes of lengthy processing times (e.g., staffing analysis, workflow inefficiencies) and present a concrete, time-bound plan to rectify these timelines, ensuring more efficient and timely services.
3. Comprehensive Contact Information Portal: Create and regularly update a comprehensive, publicly accessible online contact list for various LADWP services. This should include phone numbers and email addresses of key personnel, organized by department or service area, to facilitate direct and efficient communication.
4. Dedicated Industry Liaison: Consider establishing a dedicated liaison or team within LADWP specifically for the development community to streamline communication, clarify guidelines, and expedite complex project issues.

We believe that implementing these recommendations will significantly improve LADWP’s development services, fostering a more predictable, transparent, and efficient environment for creating much-needed housing in Los Angeles. We stand ready to collaborate with LADWP to achieve these crucial improvements.

The AIA LA & LACP Professional Volunteer Program (PVP)

Architects & designers passionate about improving the design quality of newly proposed projects throughout the City of Los Angeles are encouraged to participate in the Professional Volunteer Program (PVP), which is a collaborative design review program organized by AIA LA & Los Angeles City Planning (LACP)’s Urban Design Studio.

This year, we will be coordinating thirty-one virtual design review sessions, which will serve as opportunities for architects and designers to help the Los Angeles City Planning’s Urban Design Studio critically review upcoming projects throughout our City.

July 8 (10am)

July 15 (10am)

Aug 5 (10am)

RSVP HERE (virtual on zoom)

Design Review Sessions w/ LACP Urban Design Studio 2025

UNPLAN LA_Transitional Height

FOR MORE INFORMATION:

Will Wright, Hon. AIA|LA
Director, Government & Public Affairs
t: 213.639.0764
e: will@aialosangeles.org
www.aialosangeles.org