LA Mayoral Candidate Raman Backs Mansion Tax Relief to Spur Supply
The Iced Coffee Hour
Los Angeles cannot resolve its housing and homelessness crises through tax hikes because municipal red tape suppresses private construction, requiring City Hall to audit spending and deregulate developers to regain voter trust.
Los Angeles City Councilmember Nithya Raman acknowledges that Measure ULA has significantly suppressed new apartment construction and advocates exempting new multi-family developments from the transfer tax. (10:52)
Raman reports that Council District 4 achieved a 70% drop in encampments and RVs over three years by enforcing performance metrics across local shelters and street outreach teams. (39:46)
Affordable housing development in Los Angeles routinely reaches up to $1 million per unit due to multi-layered government financing schemes, bureaucratic delays, and prevailing wage mandates. (37:04)
Raman opposes the proposed $6 billion Los Angeles Convention Center expansion, highlighting city projections of a $90 million annual operating deficit for the next 30 years. (62:27)
Detailed notes
## Background
Published on YouTube by The Iced Coffee Hour on October 25, 2026, this episode features host Graham Stephan confronting Los Angeles City Councilmember and mayoral candidate Nithya Raman. According to the show notes and timestamps, the discussion centers on fixing Los Angeles's housing crisis, the fallout of the city's mansion tax, landlord regulations, homelessness spending audits, policing, and tax policy.
## TL;DR
Los Angeles City Councilmember and mayoral candidate Nithya Raman sits down with hosts Graham Stephan and Jack Selby to address the systemic crises impacting Los Angeles, spanning housing affordability, homelessness, and municipal governance. Drawing from his negative experiences as an LA landlord before relocating out of state, Stephan challenges Raman on rent control, protracted permitting delays, squatter protections, and the unintended consequences of the Measure ULA mansion tax. In response, Raman outlines concrete policy fixes, advocating for binding approval shot clocks for developers, exempting new multifamily construction from transfer taxes, and establishing strict performance metrics to audit homeless service providers. The conversation also explores public safety and crisis response, with Raman clarifying her stance on LAPD staffing, unarmed mental health teams, and distancing herself from far-left DSA platform goals in favor of practical administrative accountability.
## Atmosphere & style
The dialogue carries a sharp, pragmatic tension that balances Graham Stephan's palpable personal frustration as a former LA resident with Nithya Raman's calm, detail-oriented defense of civic governance. While rooted in ideological friction between free-market landlord realities and progressive tenant protections, the exchange remains respectful, candid, and refreshingly direct. The dynamic feels like an authentic, high-stakes policy cross-examination that gradually warms into mutual respect, anchored by Raman's willingness to face unscripted criticism and Stephan's search for tangible municipal solutions.
## Bulletin
- [10:52](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=652s) Los Angeles City Councilmember Nithya Raman acknowledges that Measure ULA has significantly suppressed new apartment construction and advocates exempting new multi-family developments from the transfer tax.
- [39:46](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2386s) Raman reports that Council District 4 achieved a 70% drop in encampments and RVs over three years by enforcing performance metrics across local shelters and street outreach teams.
- [37:04](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2224s) Affordable housing development in Los Angeles routinely reaches up to $1 million per unit due to multi-layered government financing schemes, bureaucratic delays, and prevailing wage mandates.
- [01:02:27](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3747s) Raman opposes the proposed $6 billion Los Angeles Convention Center expansion, highlighting city projections of a $90 million annual operating deficit for the next 30 years.
## Key takeaways
- [02:36](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=156s) Charter reforms passed 25 years ago consolidated executive power in the Los Angeles mayor's office to hire, fire, and direct municipal department heads.
- [06:25](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=385s) Commercial corridors occupied by single-story strip malls offer prime opportunities for high-density infill housing without displacing existing rent-controlled tenants.
- [13:39](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=819s) To address severe building delays, Raman proposes binding permitting shot clocks of 60 days for zoning-compliant projects and 120 days for non-compliant developments.
- [22:41](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1361s) Under the Rent Stabilization Ordinance, allowable annual rent increases are capped at 90% of CPI, which landlords argue fails to cover rapid spikes in insurance, utilities, and labor.
- [33:45](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2025s) Severe shortages of below-market housing have made several Los Angeles neighborhoods among the most overcrowded in the United States.
- [41:21](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2481s) Time-limited housing vouchers cost $29,000 to $35,000 annually per person, with 75% of participants remaining stably housed after two years, compared to up to $100,000 per bed for Inside Safe motel rooms.
- [44:54](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2694s) Enforcement of expanded conservatorship laws under California Senate Bill 43 is severely limited by a regional shortage of psychiatric treatment beds.
- [52:47](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3167s) Unarmed CIRCLE response teams successfully divert non-violent mental health 911 calls away from armed police officers across multiple pilot neighborhoods.
- [56:07](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3367s) Raman advocated for establishing a municipal Bureau of Homelessness Oversight to audit spending and track performance metrics across contracted non-profits.
- [01:08:03](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4083s) LAPD staffing shortages are primarily driven by retirements and a personnel department process that takes up to a year to onboard new applicants.
- [01:17:24](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4644s) Raman rejects core Democratic Socialists of America platform stances, including the nationalization of corporations, the abolition of prisons, and ending private property ownership.
- [01:21:55](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4915s) Raman concedes that Los Angeles City Hall has lost the public trust necessary to pass new tax measures and must demonstrate clear spending results first.
## Detailed walkthrough
### [00:00](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=0s) Introduction and Clash of Perspectives
The episode opens with a rapid montage previewing the central conflicts between Los Angeles City Councilmember Nithya Raman, who has entered the race for Mayor of Los Angeles, and host Graham Stephan, a real estate investor who relocated away from California due to frustration with local governance. Stephan directly challenges Raman on why anyone would put capital back into the state, prompting her to counter that she intends to change his mind. Raman identifies homelessness and soaring housing costs as two sides of the same coin, emphasizing accountability and auditing across city operations: “If we want to raise taxes, we got to earn trust again. And I am here to earn your trust.” Stephan presses back on why taxpayers should ever be asked to accept new taxes before municipal spending is brought under control, to which Raman sharply counters that she argued the exact opposite. When asked about critical independent commentators exposing municipal mismanagement, such as Nick Shirley, Raman explains her goal: “My hope is that we build a system here in Los Angeles where Nick Shirley cannot come and find anything to complain about.”
[01:03](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=63s) Graham's Disclaimer and Welcoming Nithya Raman
Graham Stephan records a personal upfront disclaimer explaining why this interview requires extra context. He shares that he left Los Angeles roughly six years ago because the living conditions and local policies had become intolerable for him. With Raman currently running for mayor, the show extended invitations to both Raman and sitting Mayor Karen Bass; while Bass never replied, Raman accepted with no preconditions on topics. Stephan highlights that while the conversation grew contentious at several junctures—particularly around street encampments, illicit drug use on sidewalks, and tenant regulations—he gives her immense credit for sitting down to field unvetted, pointed questions. Transitioning into the studio, Stephan welcomes Raman and her campaign manager Jason, thanking them for participating in an open dialogue that remains exceedingly rare among prominent political figures. Stephan shares his personal history in the region, noting he grew up in Los Angeles, lived in West Adams, and later moved to Santa Monica, while co-host Jack Selby was raised in Ventura County and lived alongside him in Santa Monica as conditions visibly deteriorated across the region.
[02:36](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=156s) The Structural Powers of the Mayor of Los Angeles
Stephan asks Raman to demystify the actual executive authority of the Los Angeles mayor compared to public perception. Raman explains that California and West Coast cities historically adopted a "weak mayor" model with strong, decentralized city councils. This structure originated during the early twentieth-century progressive movement to deliberately guard against the machine-style political corruption seen in cities like Chicago. However, roughly twenty-five years ago, Los Angeles underwent a comprehensive charter reform that consolidated significant executive power back into the mayor’s office.
```mermaid
flowchart TD
accTitle: Executive Authority of the Mayor of Los Angeles
accDescr: Diagram illustrating the powers granted to the LA Mayor via charter reform to oversee city departments.
subgraph OfficeOfTheMayor["Office of the Mayor (Charter Reform Powers)"]
Mayor["Mayor of Los Angeles"]
Appoint["Hire and Fire Department Heads"]
Priorities["Set Departmental Agendas & Priorities"]
Metrics["Establish Performance Metrics & Accountability"]
end
Under the current charter, the mayor holds direct administrative leverage over city operations:
- The authority to hire and fire every municipal department head.
- The power to establish priorities and operational objectives for each city agency.
- The mandate to formulate specific performance metrics that determine whether department heads are held accountable.
Raman emphasizes that a proactive executive can map homeless encampments, track neighborhood trash responsiveness, and demand measurable progress from agency heads. She insists that when past mayors fail to exercise these operational levers, it creates a false impression that the office is powerless: “When mayors don't use that power to actually push city departments to deliver for residents, it looks like the mayor is not as powerful. But, I want to use those powers.”
[04:29](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=269s) Homelessness, Living Costs, and the Origin of Unhoused Residents
Stephan asks Raman to identify the single most critical crises facing Los Angeles. Raman names homelessness and housing costs as the twin emergencies dominating the city. While acknowledging complicating layers such as severe mental health struggles and substance abuse, Raman notes that broad economic data across the United States shows the highest rates of unsheltered, street-level homelessness consistently cluster in the cities with the least affordable housing stock.
Stephan questions whether unhoused individuals simply migrate to wealthy enclaves to seek handouts, but Raman rejects the idea that LA's street population is overwhelmingly imported from other states. Representing portions of the San Fernando Valley, she points out that people living along the Los Angeles River and in neighborhood encampments are predominantly long-term Angelenos who fell through the cracks after losing employment or housing. While specific coastal pockets like Venice or Santa Monica, as well as Hollywood—which historically draws vulnerable LGBTQ youth searching for community acceptance—attract people from elsewhere, the vast majority were either born in Los Angeles or were last housed locally before experiencing financial collapse.
[06:25](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=385s) Housing Shortages, Bureaucracy, and Rent Control Debate
Addressing high-impact solutions, Raman argues that Los Angeles must focus intensely on building massive amounts of new housing. She acknowledges the fiscal reality that the municipal government cannot construct its way out of the crisis solely through 100% publicly funded affordable housing. The state calculates that Los Angeles needs an estimated 500,000 additional units to close its current supply deficit. Raman asserts that city hall itself remains the primary bottleneck to progress: “We need to make it easier, cheaper, faster to build more housing. And the biggest obstacle to building more housing in Los Angeles is often the government.” She points out that LA enforces the slowest approval timelines for multi-family apartment buildings, levies punitive entitlement and permitting fees, and subjects developers to unpredictable, exorbitant charges from the Los Angeles Department of Water and Power (LADWP).
Stephan challenges her by asking whether abolishing rent control would be the real catalyst to unlock private capital and new construction. Raman clarifies that under California state law (the Costa-Hawkins Rental Housing Act), any residential construction built after 1978 is exempt from local rent stabilization regulations. Stephan counters that rent stabilization severely suppresses urban infill on pre-1978 properties, sharing his personal experience owning a duplex where a tenant earning over $200,000 annually was protected under rent stabilization. Stephan argues that while the Ellis Act exists to allow demolition and redevelopment, the lengthy legal friction, project delays, and free tenant attorneys cause small developers to abandon projects entirely and invest out of state. Raman replies that Los Angeles retains massive stretches of major commercial corridors—such as Ventura, Sunset, and Wilshire Boulevards—that currently feature single-story strip malls and zero housing, representing prime opportunities for high-density multi-family housing that does not require displacing existing tenants.
[09:04](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=544s) Where Housing Can Be Built and the Mansion Tax Divide
The discussion opens on the topic of zoning and construction roadblocks across Los Angeles. Councilmember Nithya Raman argues that rent control policies—which do not apply to properties built after 1978 under California state law—are not the primary barrier preventing new housing development. Instead, she highlights the massive untapped potential of building "by right" along major boulevards and commercial corridors. When Graham Stephan pushes back, arguing that many existing commercial properties along those boulevards date back to before 1978, Raman points out that many of them are commercial strip malls containing zero residential units, meaning rent control would not even apply to their redevelopment.
```mermaid
flowchart TD
accTitle: Measure ULA Tax Tiers and Revenue Allocations
accDescr: Flowchart detailing property sales thresholds under Measure ULA and the program areas funded by the tax revenue.
subgraph Thresholds ["Measure ULA Sales Tax Tiers"]
T1["Sale > $5 Million: 4.0% Transfer Tax"]
T2["Sale > $10 Million: 5.5% Transfer Tax"]
end
subgraph Programs ["Funded Interventions"]
F1["Affordable Housing Construction"]
F2["Direct Rent Relief to Landlords"]
F3["Tenant Legal Defense Support"]
end
Thresholds --> Programs
```
The conversation then turns directly to Measure ULA, widely labeled as the "mansion tax," which went into effect on April 1st. Stephan recalls that the measure was a major point of friction between them when they previously sparred online. Raman acknowledges that she was an early proponent of the tax because it created a critical local revenue stream for affordable housing after California dissolved municipal redevelopment agencies (the CRA). She notes that the tax also funds programs such as tenant legal defense and direct emergency rent relief paid to landlords on behalf of delinquent tenants—an intervention she defends as a genuine win-win that keeps renters housed while keeping landlords financially whole.
- Measure ULA imposes an additional 4% transfer tax on Los Angeles real estate transactions over $5 million.
- For property sales exceeding $10 million, the transfer tax increases to 5.5%.
- ULA funds were designed to fill the financial vacuum left when California dissolved local Community Redevelopment Agencies (CRAs).
[10:52](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=652s) Reforming Measure ULA to Protect Multi-Family Construction
Despite her initial support for the ballot measure, Raman openly concedes that the real-world data collected since its passage reveals severe unintended consequences. She cites studies demonstrating that Measure ULA has severely suppressed new apartment construction across Los Angeles, depressing unit counts by penalizing multi-family residential developments when they sell upon completion. Recognizing that increasing overall housing supply is existential for the city, Raman explains that she authored a city council proposal to exempt new multi-family construction from the tax entirely, though the reform has faced bureaucratic and political hurdles in council.
> “And what has happened in the years since, and I know that there's a lot of disagreement out there about the data, but I the studies that I have seen suggest that the mansion tax has actually significantly impacted new apartment construction here in the city of Los Angeles.” — *Nithya Raman*
Raman contends that the chilling effect of Measure ULA on new development is far more damaging to the housing stock than local rent control regulations, specifically because post-1978 multi-family buildings are already exempt from the city's Rent Stabilization Ordinance. When Stephan bluntly asks what she would tell an investor like him who says, “I'm never going to invest another dollar in California real estate ever again,” Raman insists she wants to restore that investor confidence. She speaks passionately about moving to the United States at six years old and viewing Los Angeles as the ultimate embodiment of the American dream—a city defined by entrepreneurial ambition, incredible weather, and culture. She maintains that if the city can effectively address its unsheltered homelessness crisis and eliminate counterproductive regulatory red tape, private capital and trust will return.
[13:39](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=819s) Cutting Bureaucratic Red Tape: From Sidewalk Cafes to Permitting Shot Clocks
Jack Selby presses Raman on the rhetoric often used by local officials, pointing out that politicians constantly promise to cut red tape and promote housing, but rarely specify which exact regulations are stifling growth. Raman begins by offering a practical, non-ideological example: sidewalk dining. Rather than forcing restaurateurs through months of expensive permitting and multiple rounds of site inspections just to place tables outside, the city should establish simple, clear guidelines, allow owners to self-certify compliance, and rely on periodic back-end audits. She highlights that San Francisco Mayor Daniel Lurie implemented a similar common-sense reform immediately upon entering office.
```mermaid
flowchart LR
accTitle: Proposed Permitting Shot Clock Policy
accDescr: Flowchart outlining Raman's proposed time limits for city zoning approvals with financial consequences.
subgraph Consequence ["City Accountability"]
FEE["Refund Permitting Fees to Builder"]
end
ShotClock -->|"If City Misses Deadline"| Consequence
```
Stephan and Selby push her to move beyond dining and tackle housing permits. In response, Raman outlines her legislative push for a binding "shot clock" for city entitlement and permit processing:
> “And so, I'm saying 60 days for a zoning compliant project, 120 days for a non-zoning compliant project, and making sure that the city of Los Angeles is not going beyond that to give you the approval to build.” — *Nithya Raman*
To enforce these deadlines, Raman proposes that the city be required to refund development fees back to builders if the municipal departments fail to meet the shot clock timeline. When asked why Los Angeles takes so much longer than other jurisdictions, Raman points to a recent comparative municipal study showing Los Angeles takes double or triple the approval time of comparable cities in Texas and Colorado. Jack Selby then invites Stephan to share his personal nightmare trying to permit an Accessory Dwelling Unit (ADU) in the City of Los Angeles, where receiving initial construction clearance went smoothly, but securing a basic Certificate of Occupancy to let a paying tenant move in dragged on for agonizing months.
*(Note: Between and, the hosts cut to a promotional sponsorship segment for Northwest Registered Agent.)*
[18:01](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1081s) Graham's Permitting Nightmare and the Realities of Mom-and-Pop Landlording
Graham Stephan recounts the grueling bureaucratic ordeal he faced trying to get a certificate of occupancy for a rental property in the City of Los Angeles. The first inspector failed to show up at all. The second inspector flagged an improperly installed AC condenser line and refused to sign off on it, despite the contractor offering to fix the issue within twenty minutes; because it was a Friday afternoon and the inspector wanted an early start to his weekend, he instructed them to reschedule. When a third inspector arrived, he bypassed the air conditioning completely and presented an entirely new checklist of demands. A subsequent inspection required a sewer line review, where inspectors discovered a crack.
Graham asked the city to issue a conditional certificate so the incoming tenant could move in while they executed an agreement to complete repairs within thirty days, but the city refused. Fixing the sewer line cost $40,000, and because it ran underneath the public walkway, work was delayed an additional six months while waiting for city approval to cut into the sidewalk, which cost another $8,000. During the delay, Graham received a municipal fine for failing to plant a tree in the median. The compounding costs, regulations, and delays convinced Graham to leave the Los Angeles rental market altogether:
> “The rent control restrictions make it so that you cannot run as a mom-and-pop landlord in California at all.” — Graham Stephan
Graham points out that rent control applies universally without regard to wealth, sheltering tenants earning $500,000 a year under the exact same protections as someone earning $30,000. He notes that when rents are held well below market rate, landlords lack both the capital and incentive to maintain their buildings, leaving properties in dilapidated conditions. In his own experience with a wealthy family earning over $200,000 annually, Graham offered them $40,000 simply to vacate; they refused and demanded $80,000 instead.
```mermaid
flowchart TD
accTitle: Graham's Permitting Ordeal
accDescr: Flowchart illustrating the chain of bureaucratic hurdles and inspection delays Graham Stephan experienced in Los Angeles.
subgraph Inspections["City Inspection Process"]
I1["Inspector 1: No-show"] --> I2["Inspector 2: Condenser line issue; leaves early Friday"]
I2 --> I3["Inspector 3: Produces completely new checklist"]
I3 --> I4["Inspector 4: Mandates surprise sewer line inspection"]
end
subgraph Complications["Costly Delays & Fines"]
I4 --> C1["Sewer crack found: $40,000 repair"]
C1 --> C2["Sidewalk permit needed: $8,000 & 6-month delay"]
C2 --> C3["City issues fine for missing median tree"]
end
C3 --> Out["Outcome: Graham exits LA rental market"]
```
[20:34](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1234s) Squatters, Eviction Battles, and the Tenant-Landlord Power Imbalance
The discussion expands to the broader power dynamic in Southern California real estate. While rent control was instituted with good intentions, human nature often leads people to exploit rules when leverage tilts too far to one side. A co-host describes trying to sell an inherited $4.5 million home in Beverly Hills that was occupied by an entrenched squatter whom the owner had been trying to evict for eighteen months. Ultimately, the agent had to abandon the listing because marketing the property was impossible.
In another case involving a duplex in Los Angeles, an existing tenant refused to let the listing agent take interior photos or grant access to an appraiser, which scuttled the buyer's loan and terminated the sale. Because eviction proceedings routinely drag on for six months to a year, many property owners feel powerless against non-cooperative occupants who exploit free legal defense to stall proceedings. The co-host mentions high-end rental properties where tenants earning $1 million a year and paying $40,000 a month refuse to vacate without exorbitant cash payouts. Recent policy changes also cap security deposits at a single month's rent, which backfired on one owner who had $300,000 worth of luxury furnishings stolen by a disbarred attorney living in their property. Wealthy renters enjoy the same municipal protections as vulnerable families, leaving owners unable to negotiate fair leases or protect their capital.
- A homeowner in Beverly Hills spent over 18 months attempting to remove a squatter from an inherited $4.5 million residence.
- A Los Angeles duplex sale fell through after the tenant blocked appraiser access, causing the buyer's mortgage loan to be denied.
- Los Angeles caps security deposits at one month of rent, limiting an owner's protection even on ultra-luxury furnished units commanding $40,000 per month.
- Landlords face eviction proceedings lasting six months to a full year, while tenants utilize city-funded legal programs to delay exits.
[22:41](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1361s) Free Legal Aid, Eviction Protections, and the Rent Cap Debate
Councilmember Nithya Raman responds by defending the rationale behind Los Angeles's tenant protection policies. She clarifies that free legal assistance funded by the city is not universal; it is restricted solely to low-income renters who meet specific financial criteria. Historically, low-income tenants facing eviction ended up unrepresented in court against landlords with far greater financial resources, leading to rapid, destabilizing displacement across neighborhoods. While acknowledging that bad actors exist among both tenants and landlords, Raman emphasizes that her council office regularly receives distress calls from low-income constituents who are subjected to illegal eviction notices or the withdrawal of essential building services.
Graham Stephan challenges this rationale by asking whether low-income, mom-and-pop landlords who are breaking even or paying out of pocket to maintain properties can access comparable free legal aid during an eviction dispute. Raman concedes that while the city provides general assistance programs for small businesses, those resources do not extend to legal defense for landlords in eviction court. She stresses that she regularly consults with landlord associations and remains open to reviewing hard data showing smaller operators fleeing the market.
The conversation shifts to the city's allowable rent increases. Raman notes that Los Angeles currently limits annual rent increases under the Rent Stabilization Ordinance (RSO) to a range between 1% and 4%, tied to 90% of the Consumer Price Index (CPI). Graham Stephan argues that holding increases below CPI creates severe financial strain because the actual costs of ownership—such as insurance rates, municipal utility fees, and specialty labor like plumbers and electricians—have risen at rates far higher than official CPI figures.
> “So, what we're seeing much more frequently is the other side of the case, particularly in the city. And a lot of the rules and regulations are really trying to say, ‘Hey, this is a necessary thing. And if people get evicted, if people lose their homes, it's destabilizing for our neighborhoods and communities. So, is there a way in this environment to make this a more even playing field?’” — Nithya Raman
[26:40](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1600s) The Collapse of Los Angeles Multifamily Values
Graham Stephan brings up a stark data point regarding the local real estate climate: multifamily property values across Los Angeles have dropped roughly 29% to 30% over the previous four years. When Nithya Raman asks why he believes that is, Graham explains that while elevated interest rates are a major driver, macro rates alone fail to explain why Los Angeles multifamily has plunged so much harder than neighboring markets like Beverly Hills or Newport Beach, or compared to single-family homes. Graham notes that he owns both a single-family home and a duplex in the area; his single-family home is up substantially, whereas multifamily assets have dropped back to price levels seen roughly a decade ago.
An investor who purchased a fourplex in 2017 has effectively seen zero capital appreciation over that ten-year stretch, contrasting sharply with the stock market, where index funds would have doubled their money. Raman counters by suggesting that owners likely collected substantial rental income along the way, but Graham disputes this outright. He outlines that at current prices and interest rates, multifamily owners typically bleed cash every single month.
```mermaid
flowchart TD
accTitle: Cash Flow Breakdown for a $2 Million Fourplex
accDescr: Diagram contrasting monthly carrying costs against collected rent to show negative monthly cash flow.
subgraph Costs["Monthly Expenses"]
M["Mortgage & Property Taxes: ~$12,000/mo"]
end
subgraph Income["Monthly Revenue"]
R["Collected Rental Income: ~$10,000 - $11,000/mo"]
end
subgraph Deficit["Net Operating Result"]
L["Monthly Landlord Loss: -$1,000 to -$2,000/mo"]
end
Costs --> Deficit
Income --> Deficit
```
Graham walks through the math: purchasing an average fourplex for $2 million today requires around $12,000 a month to service the loan, pay property taxes, and cover maintenance. Yet market rents on that building will only fetch around $10,000 to $11,000 per month, leaving the landlord with an out-of-pocket loss of $1,000 to $2,000 every single month. When rent control suppresses rents even further—such as having a tenant paying $1,200 per month on an apartment that should rent for $2,100—asset values plunge by an additional 20% to 30%. Because buyers know below-market tenants will never leave, they refuse to touch those properties. The long-term owners are trapped, unable to sell without massive discounts. Graham concludes: “So they sell and that reduces the price more and then you go buy somewhere else.”
- Multifamily values in Los Angeles have dropped roughly 29% to 30% across the board over four years.
- A fourplex purchased around 2017 has experienced virtually zero net appreciation over a decade.
- Monthly carrying costs on a typical $2 million fourplex run around $12,000 against monthly rent collections of only $10,000 to $11,000.
- Deeply discounted rent-controlled units (e.g., $1,200/month versus a $2,100 market rate) leave buyers and long-term owners completely stuck.
---
[29:19](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1759s) Housing Policy: Market Interventions vs. Universal Vouchers
Turning the conversation back to core policy solutions, Nithya Raman asks Graham what intervention he would prioritize if he were a policymaker tasked with increasing housing production. Graham notes that he agrees with much of Raman’s platform regarding cutting bureaucratic red tape and speeding up approvals, and he urges the city to re-evaluate policies like the Measure ULA transfer tax (the "mansion tax"). Raman points out that repealing or amending Measure ULA would require returning the issue to voters, though she remains open to examining data on its economic effects.
Graham then pitches an alternative framework to replace long-term rent control mandates on private owners. Acknowledging that no one wants to displace vulnerable tenants into homelessness or hit them with sudden rent jumps from $1,200 to $1,800, he argues that the financial burden of protecting low-income tenants should not rest entirely on private property owners:
> “So, it's a way of saying and I don't even mind so rather than putting it all on landlords and saying you're just going to have to suffer, why don't we all pay our taxes, give it to tenants who qualify, and let them use that voucher to a landlord so we have a free market.”
Jack Selby pushes back on Graham’s voucher proposal, questioning whether subsidizing the gap indefinitely creates a permanent "bleeding system" that props up individuals who cannot afford market rates, or functions like an arbitrary lottery for whoever happened to rent an apartment decades ago. Jack asks why rent control protections are designed to last indefinitely instead of expiring after a set adjustment window like 10 years.
---
[31:22](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1882s) Mid-Roll Commercial Break: Cash App and Faire
Graham and Jack pivot to a pair of mid-roll sponsor reads.
Jack and Graham introduce Cash App, highlighting the Cash App Card and the new Cash App Green status tier. Spending $500 monthly unlocks features including up to $200 in fee-free overdraft protection, increased borrow limits, and personalized cashback offers on Fridays. They share a promotional code (`Cash App 10`) offering new users $10 after sending $5 to a friend within 14 days.
Next, they promote Faire, an online wholesale marketplace connecting independent local retailers with over 100,000 brands across home goods, apparel, food, and beauty. The hosts highlight how Faire streamlines inventory stocking ahead of the holiday season, offering 60-day interest-free payment terms and free returns on first-time orders with new brands at `faire.com/icedcoffee`.
---
[33:45](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2025s) The Limits of the Private Market and Severe Overcrowding
Returning to Jack’s question about why rent control is maintained indefinitely rather than capped at 10 years, Raman lays out the systemic limitations of relying purely on market forces to house lower-income residents. She explains that while the private development market is highly efficient at producing luxury units and housing for high-income earners, it fails to produce housing that matches the budgets of people earning below the median area income.
```mermaid
flowchart TD
accTitle: Market Failure and Neighborhood Overcrowding
accDescr: Flowchart illustrating how a lack of low-income housing production forces severe household overcrowding.
PM["Private Market Builds High-End Housing"] --> Gap["Lack of Affordable Housing for Low-Income Earners"]
Gap --> OC["Doubling and Tripling Up in Existing Units"]
OC --> Dense["Extreme Overcrowding (e.g., 8 People in a 1-Bedroom)"]
Dense --> Health["Severe Public Health Vulnerabilities (Rapid COVID Spread)"]
```
When new market-rate construction is priced far out of reach for working-class residents, the only available coping mechanism is extreme doubling-up and household consolidation. Raman points out that this economic dynamic has turned several Los Angeles neighborhoods into some of the most severely overcrowded areas in the entire United States. She notes:
> “And so, you have neighborhoods here in Los Angeles that are some of the most overcrowded neighborhoods in the entire country because you have eight people living in a one-bedroom apartment.”
Raman emphasizes that this severe density was not a personal lifestyle preference, but rather a direct systemic reaction to the private market failing to build homes for the city's poorest residents. She adds that this precise condition explains why COVID-19 spread with such devastating speed through specific Los Angeles communities during the height of the pandemic.
[35:05](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2105s) Market Housing, Austin's Model, and Low-Income Housing in Coastal Cities
The conversation shifts to the viability of market-rate development versus subsidized housing. Nithya Raman raises the fundamental question: if the private market never naturally produces homes for individuals with the lowest incomes, what is the appropriate municipal response? Graham Stephan suggests allowing more building height and density to boost overall supply. Co-host Jack Selby proposes housing vouchers, arguing they allow recipients to use subsidies where the private market dictates.
Graham brings up Austin, Texas, as a case study, pointing out that aggressive building and market privatization led to a roughly 30% drop in home prices. Turning to Southern California, Graham argues that land in coastal cities like Santa Monica, Venice Beach, and Marina del Rey is exceptionally scarce and expensive. He questions why low-income housing should be prioritized in prime coastal spots when cheaper land exists inland, asking why someone should possess the inherent right to live in Santa Monica rather than twenty minutes east.
```mermaid
flowchart TD
accTitle: Differing Approaches to Urban Housing Markets
accDescr: Comparison of Graham Stephan's market-based proposal versus Nithya Raman's community-stabilization vision.
subgraph Graham["Graham Stephan's Market Approach"]
G1["Increase Density & Height"] --> G2["Privatize & Accelerate Building<br/>(e.g., Austin Model: Prices -30%)"]
G2 --> G3["Build Affordable Units on Cheaper Inland Land"]
G3 --> G4["Distribute Vouchers Based on Market Rates"]
end
subgraph Raman["Nithya Raman's Inclusive Approach"]
R1["Reject Zero-Sum Framing"] --> R2["Stabilize Existing Local Residents"]
R2 --> R3["Welcome Newcomers into Coastal Pockets"]
R3 --> R4["Maintain Socioeconomic Diversity in High-Opportunity Areas"]
end
```
Raman counters that public policy is not about arbitrary entitlement to specific ZIP codes, but about the nature of communities the city seeks to preserve. She maintains that existing residents who have lived in a neighborhood for decades should not be forced out, nor should newcomers be excluded:
> “I think it's less about the right to live in Santa Monica and more about what kind of communities you're trying to support here.”
She argues that housing policy should not be viewed as a zero-sum game, insisting cities can protect vulnerable residents while simultaneously encouraging new construction.
[37:04](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2224s) The $1 Million Affordable Housing Unit and Bureaucratic Inefficiencies
The hosts challenge the financial logic behind public low-income developments. Graham points to a parking structure in Santa Monica being redeveloped into government-funded low-income housing at a projected cost of roughly $1 million per unit. He calls that figure completely untenable, arguing that privatized developers operating under free-market incentives could build far more efficiently, and that some people simply cannot afford the most expensive areas:
> “A million dollars unit is insane. This should not happen this should not happen at all.”
Raman acknowledges that the skyrocketing cost per unit warrants severe scrutiny. She explains that affordable housing projects become bloated because they are typically cobbled together from eight distinct funding streams across city, state, and federal programs. Securing and aligning these separate subsidies often forces developers to sit on idle land for six to seven years while carrying heavy financing costs, only to face environmental or neighborhood lawsuits that drag out timelines further.
```mermaid
flowchart LR
accTitle: Drivers of High Affordable Housing Costs
accDescr: Factors identified by Raman and Graham that inflate unit development costs to one million dollars.
subgraph FundingRedTape["Bureaucratic & Financing Bottlenecks"]
A["8 Layered Funding Sources<br/>(City, State, Federal)"] --> B["6-7 Years of Holding Land Costs"]
B --> C["CEQA / Local Lawsuits & Delays"]
C --> D["Utility Delays (LADWP Connections)"]
end
subgraph LaborRequirements["Mandated Labor Standards"]
E["Prevailing Wage & Union Mandates"] --> F["Public Funds Require Living Wages"]
end
FundingRedTape --> G["Per-Unit Costs Exceeding $800K–$1M"]
LaborRequirements --> G
```
Graham interjects that union labor requirements and prevailing wage mandates add immense expense. Raman acknowledges that union requirements increase upfront costs, but defends them as an intentional public policy priority decided by California voters: if taxpayer funds are spent, workers should earn a living wage. However, she argues that cities can aggressively lower total development costs elsewhere by:
- Streamlining financing into single-source public pools.
- Cutting red tape and speeding up utility approvals through the Los Angeles Department of Water and Power (LADWP).
- Eliminating unnecessary procedural barriers that hold projects in pre-development limbo.
[39:46](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2386s) Homelessness Budgets, Auditability, and Council District 4 Results
Graham turns to the broader homelessness crisis, highlighting that despite billions allocated—including approximately $400 million on Mayor Karen Bass's Inside Safe initiative and an estimated $2.2 billion in overall regional spending—homelessness counts citywide rose by 7.9%. He points out that the visible crisis has worsened in many areas over the past six years.
Raman concedes that local government has lost public trust and emphasizes that city leaders must account for every tax dollar to ensure it produces real exits from street homelessness. She contrasts broader city figures with the outcomes in her own jurisdiction (Council District 4):
- A 70% reduction in tents, RVs, and street encampments over a three-year span.
- A 49% reduction in unsheltered individuals in the past year alone.
When asked what her office did differently, Raman explains that they actively monitored and held street outreach teams accountable. Rather than simply funding nonprofit vendors without metrics, her staff tracked whether caseworkers were consistently in the field moving unhoused individuals along the pipeline toward housing. Furthermore, her team closely manages the district's four shelter facilities, tracking documentation and case plans to ensure people do not cycle straight back onto the street.
[41:21](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2481s) Time-Limited Subsidies vs. Inside Safe and the Need for Vendor Oversight
Asked about the per-person cost to get someone off the street, Raman distinguishes between different models. She identifies the time-limited subsidy program—a short-term rental voucher providing up to $2,000 per month for up to two years—as the most scalable and cost-effective mechanism available.
- **Cost of Time-Limited Subsidies:** $29,000 to $35,000 per person per year.
- **Cost of Inside Safe Motel Placements:** Up to $100,000 per person, per bed each year.
- **Voucher Retention Rate:** 75% of participants remain stably housed after their two-year subsidy expires.
Raman explains that voucher recipients stay housed through various pathways: some achieve employment and transition to paying their own rent, others reunite with family networks, and many are connected to permanent public benefits or veterans' pensions they were already entitled to receive.
When Graham asks which programs fail the hardest, Raman points directly to programs lacking administrative accountability. Ineffective programs suffer from high caseworker turnover, disorganization, and failure to process vital documentation (such as IDs and background paperwork) required to transition clients into permanent housing:
> “The worst program is the non-functional program. Is the program that is not it's not held accountable for outcomes.”
She compares homeless service providers to private businesses, noting that two nonprofits doing identical work can produce wildly disparate results depending entirely on their executive management. By tying city contracts directly to performance metrics, Los Angeles can reallocate funding toward high-performing operators and cut off those that fail to deliver.
[43:54](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2634s) Accountability and Choosing Competent Homeless Service Providers
The conversation centers on the operational divide among non-profit service providers tasked with handling homelessness in Los Angeles. Nithya Raman argues that holding providers accountable requires active performance monitoring so the city can terminate contracts with ineffective organizations and reallocate funding to those producing tangible outcomes. The hosts draw a comparison to private business and construction, noting that two companies operating under identical premises often perform radically differently purely due to management quality and how leadership organizes its personnel.
Raman emphasizes that public skepticism stems directly from broken promises, making transparent metrics non-negotiable for regaining civic trust. She asserts that the municipality must actively curate its partner network rather than dispersing funds blindly.
> “And so I would say that you have to be able to build a a homelessness response system here in the city of Los Angeles that is building trust with Angelenos again.” — *Nithya Raman*
---
[44:54](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2694s) Encampments, Refusals, and the Challenge of Involuntary Treatment
Graham Stephan challenges Raman on what the city should do when an unhoused person repeatedly turns down shelter offers, citing instances of individuals refusing help up to ten times. Raman clarifies that while the majority accept assistance when approached, those who repeatedly refuse are typically coping with severe mental illness, intense substance dependency, or profound trauma. She shares an anecdote involving an unhoused military veteran struggling with post-traumatic stress disorder (PTSD) who continually relocated whenever outreach teams approached him; it required four months of persistent, trust-building outreach before he agreed to enter mental health treatment. Today, that individual is stably housed in his own apartment and employed.
```mermaid
flowchart TD
accTitle: Homelessness Outreach and Pathway Allocation
accDescr: Flowchart detailing how the city routes individuals based on behavioral criteria and support needs.
subgraph Assessment ["Initial Contact & Assessment"]
A["Outreach Team Engagement"] --> B{"Primary Barrier / Behavior"}
end
subgraph Pathways ["Intervention Pathways"]
B -->|"General Unhoused"| C["Immediate Shelter Placement"]
B -->|"Criminal Activity / Drug Sales"| D["LAPD Law Enforcement Pathway"]
B -->|"Severe Trauma / Mental Illness"| E["Relentless Street Outreach & Trust-Building"]
end
subgraph Resolution ["Long-Term Outcomes"]
C --> F["Permanent Supportive Housing"]
E --> G["Mental Health Services & Stabilization"]
G --> F
end
```
When Stephan asks whether street encampments blocking public sidewalks should be dismantled, Raman states that city regulations should be enforced and sidewalk blockages removed. However, she stresses that enforcement without shelter capacity simply displaces individuals across the street. The hosts bring up California Senate Bill 43, which broadens criteria for involuntary conservatorships for gravely disabled individuals unable to care for themselves. They acknowledge that enforcing conservatorships remains nearly impossible due to an acute shortage of psychiatric treatment beds, pointing out that the Los Angeles County Twin Towers Correctional Facility effectively serves as the county's largest de facto mental health institution. Raman notes that California bond funding is slowly financing alternative facilities, such as an upcoming tiny home community for women in Hollywood.
> “Angelenos, I don't think care how you deal with this problem. They would prefer that it be done with compassion, with services, with care and the shelter.” — *Nithya Raman*
---
[48:40](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=2920s) Public Frustration vs. District-Level Results
Stephan expresses deep skepticism regarding the compassion-first narrative, describing personal experiences growing up on the Westside in Venice and Santa Monica. He paints a grim picture of daily life in Los Angeles neighborhoods: individuals experiencing acute mental crises screaming in streets, throwing rocks at passing vehicles, openly using heroin in residential alleys, and causing residents and families to feel unsafe. He recounts an incident where neighbors called the police about people using heroin in an alleyway; dispatchers initially deprioritized the call, stating officers could not respond unless there was an active threat, prompting the caller to report a suspected overdose just to secure an immediate patrol response.
Raman defends her record by contrasting broad municipal failures with measurable progress within her own council district. She argues that Angelenos have grown cynical because they see millions invested while conditions on the ground appear stagnant or deteriorating, but maintains that targeted outreach and encampment resolutions have cleared major sites in Council District 4 without relying purely on criminalization.
> “I'm tired of this hypothetical. What I want is a system that works. One that is aligned with the values of Angelenos, and I will build that.” — *Nithya Raman*
- Encampment removal without shelter placement leads to immediate street-to-street displacement.
- Involuntary conservatorships under Senate Bill 43 are bottlenecked by a multi-billion dollar shortage in specialized medical and psychiatric beds.
- Twin Towers County Jail remains the largest psychiatric care facility in Los Angeles County.
---
[50:51](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3051s) The Root Causes: Affordable Housing vs. Severe Mental Illness
Stephan and Raman clash directly over the core drivers of modern homelessness. Stephan points to anecdotal evidence suggesting that upwards of 80% of unsheltered individuals visible on the street suffer from acute psychiatric disorders or extreme drug addiction. Raman counters that homelessness is structurally rooted in the loss of affordable housing inventory. Historically, low-cost housing like Single Room Occupancy (SRO) residential hotels kept low-income, vulnerable, or addicted individuals sheltered indoors, where interventions were manageable and far less costly.
Raman explains that in today’s hyper-inflated real estate market, vulnerable residents living on the financial edge end up unhoused after a single health crisis or financial emergency. Once individuals are forced onto the streets, recovery and stabilization become exponentially more expensive and difficult. While acknowledging that severe psychiatric and addiction problems exist in large numbers, she contends that reducing overall housing costs would immediately reduce unsheltered street counts. Data points raised during the exchange highlight that out of an estimated homeless population of roughly 70,000 across the region, approximately 11,000 to 15,000 people are categorized with moderate to severe mental health conditions—explaining that visible street crises represent only the most acute segment of a much larger, often hidden unhoused population.
> “I think at the root of it there is a housing issue that is at the root of it. That doesn't mean that there aren't mental health challenges or substance use challenges as well, but it's just at the root there is a it's it it is a housing issue.” — *Nithya Raman*
[52:47](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3167s) Addressing Severe Mental Illness and Unarmed Crisis Response
Graham Stephan highlights the harsh reality of street homelessness outside his own office, pointing out people screaming and yelling, which makes it feel like the vast majority suffer from severe drug addiction and mental illness. Nithya Raman clarifies that street homelessness represents only the most visible fraction of the population; the public does not typically see the mothers living in cars with their children or families couch surfing, but rather the individuals experiencing acute psychiatric distress. When asked what the city should do for the roughly 20% who are severely mentally ill and wandering the streets, Raman explains that every person requires an individualized pathway forward:
> “Each of those people has an individual pathway forward, right? And whatever that pathway is, our job as a city is to push them into that pathway.”
For some, stabilization means dispatching street medicine teams to administer injectable antipsychotics so individuals can normalize before moving indoors. The conversation shifts to how police resources are utilized. While Graham and Raman acknowledge policy disagreements regarding overall police funding, both agree that law enforcement should not be forced into roles they are ill-equipped to handle. Raman advocates expanding unarmed mental health responders to take 911 service calls off the LAPD's plate. She highlights Los Angeles's CIRCLE (Crisis and Incident Response through Community-Led Engagement) teams—comprising trained outreach and mental health crisis workers—who can arrive at non-violent disturbance scenes in vans, de-escalate situations, and transport individuals directly to sobering centers or hospitals. Unless an active crime or assault is underway, police officers lack the mandate, training, and time to resolve these incidents. For the most acute cases, Raman acknowledges the need for involuntary conservatorship, noting that the legal process is intentionally lengthy because it involves stripping away someone's personal freedom, but stresses that expanding mental health treatment beds and immediate medication access is essential.
```mermaid
flowchart TD
accTitle: Diverting Mental Health and Addiction Calls from Police
accDescr: Flowchart illustrating how street-level 911 calls are triaged between law enforcement and unarmed outreach teams.
subgraph LawEnforcement ["Police Response"]
B -->|"Yes"| C["LAPD Officers Dispatched"]
C --> D["Criminal Enforcement / Threat Containment"]
end
subgraph UnarmedResponse ["Unarmed Responder Alternative"]
B -->|"No"| E["CIRCLE Teams & Mental Health Workers"]
E --> F["De-escalation & Street Medicine"]
F --> G["Sobering Centers"]
F --> H["Hospital Care"]
F --> I["Involuntary Conservatorship (Extreme Cases)"]
end
```
[56:07](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3367s) Executive Accountability, Spending Audits, and Inside Safe
The discussion turns toward broader governance, fraud, and fiscal transparency. The co-host points out that no quick soundbite can solve 10,000 to 15,000 mentally ill individuals on the street, suggesting that the city primarily needs an effective executive leader to eliminate waste, fraud, and abuse by evaluating programs strictly on efficiency and outcomes. When asked about independent investigators like Nick Schultz who expose alleged fraud in city-funded non-profits, Raman emphasizes that trust in municipal institutions must be restored:
> “I believe in a system where people should trust that taxpayer dollars are going towards good outcomes and good results, right?”
Graham questions why local and federal governments fail to provide simple, legible financial disclosures—much like public corporations—arguing that public agencies continually run deficits and fail audits while billions disappear without clear accountability. Raman agrees that radical transparency is mandatory, citing her backing from the Los Angeles City Controller to audit municipal homelessness expenditures.
She targets Mayor Karen Bass’s flagship program, Inside Safe, pointing out that despite consuming $400 million, the program experiences an estimated 40% rate of participants cycling directly back onto the streets, with motel rooms costing upwards of $100,000 per person per year. The co-host notes that unsheltered homelessness rose 7.9% in the latest count, arguing that Inside Safe has been an abject failure and that leadership resists independent audits because the results look bad. Raman explains that she pushed to establish a municipal Bureau of Homelessness Oversight and introduced the city’s first set of standardized performance metrics, but faced significant political pushback from the mayor and city leadership.
- **CIRCLE Teams:** Unarmed outreach units paired with sobering facilities to relieve police of non-violent psychiatric calls.
- **Inside Safe Program Cost:** Allocated $400 million, averaging roughly $100,000 per participant per year in motel accommodations.
- **Inside Safe Street Return Rate:** Over 40% of enrolled participants end up back unhoused on the street.
- **Unsheltered Homeless Count:** Increased by 7.9% across the city.
- **Bureau of Homelessness Oversight:** Proposed by Raman to create citywide performance tracking, facing resistance from existing municipal leadership.
[01:01:06](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3666s) The Core Dilemma: Spending Problem or Revenue Problem?
As the discussion wraps up the segment on homelessness and fiscal management, Graham attempts to isolate the root cause of the city's financial woes, framing it as a straightforward choice:
> “Is it a spending problem or is it an income problem?”
He compares the city's budget deficit to running a business, noting that business owners frequently wrestle with the same dynamic between controlling costs and generating top-line revenue before segueing into the segment's commercial break.
The host presents a promotional segment for Shopify, emphasizing the approaching holiday shopping rush as the most critical time of the year for online retailers to capture customer demand. Drawing on personal experience before working with Graham Stephan, the host notes having built six or seven separate Shopify stores, consistently returning to the platform because no real competitor matched it. The platform offers accessible tools, including its AI assistant Sidekick, which assists merchants at every phase from initial store configuration to planning Black Friday marketing promotions. Furthermore, pre-built themes and automated AI site builders remove the need to hire web developers. Listeners are directed to a dedicated URL to activate a free trial ahead of Black Friday.
- The promotional offer directs users to `shopify.com/ich` to start a free trial.
- Features highlighted include the AI assistant Sidekick, pre-built storefront themes, and AI-driven website design tools.
[01:02:27](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=3747s) Spending vs. Income and the $6 Billion Convention Center Bet
Graham pivots the conversation from homelessness to city finances, framing the issue as a foundational dilemma: does Los Angeles have a spending problem or an income problem? Nithya Raman responds that “Both are true, okay?” explaining that the city desperately lacks the management and oversight required across core public services. Basic municipal responsibilities—such as filling potholes, repairing non-functional streetlights, collecting trash, cleaning up graffiti, and maintaining parks—suffer from systemic execution issues that stronger oversight could resolve.
```mermaid
flowchart TD
accTitle: Downtown Convention Center Project Cost Analysis
accDescr: Diagram illustrating the financial structure and projected deficit of the proposed Los Angeles Convention Center expansion.
subgraph Outcome["Fiscal Outcome"]
Total["Total Outlay: ~$6.0 Billion"]
Loss["Projected Loss: -$90M/Year for 30 Years"]
end
Base --> Total
Debt --> Total
Total --> Loss
```
Graham then introduces Mayor Karen Bass's push to remodel and expand the Downtown Los Angeles Convention Center as a clear litmus test for city fiscal responsibility. The proposal entails a $2.9 billion baseline capital cost combined with roughly $3 billion in financing and debt service—now made even more exorbitant by elevated interest rates in the municipal bond market—bringing the total price tag to nearly $6 billion. Graham compares the project to the California high-speed rail, criticizing it as a political boondoggle intended to placate labor unions, drive campaign donations, and secure political endorsements despite the city's own best-case scenario projecting a direct financial loss of $90 million every year for 30 years. He commends Raman for being one of only a couple of City Council members willing to vote against the project despite the political pressure from labor and downtown business groups. Raman notes that investing billions in public money into an expansion makes little sense when the convention industry is shrinking, the city is already financially unstable, and Los Angeles faces looming financial liabilities from hosting the Olympic Games.
Jack Selby emphasizes that everyday Angelenos feel all of the downsides of local policies while experiencing none of the upsides, often hearing vague promises rather than concrete solutions. Raman asserts her core governing standard: “Right, but let's let's audit every dollar. Let's be transparent about what what we're spending on and let us invest let's invest in what works.”
- The Downtown Convention Center expansion carries an estimated $2.9 billion direct project cost plus nearly $3 billion in debt service, totaling approximately $6 billion.
- City projections forecast an annual operating deficit of $90 million for 30 years under the best-case scenario.
- Raman broke with the mayoral administration, downtown business interests, and trade unions to vote against the financing package.
[01:08:03](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4083s) Public Safety, Street Conditions, and LAPD Staffing
Graham turns to public safety, asking Raman how she plans to reduce crime. Raman argues that the widespread sense of insecurity in Los Angeles is intimately linked to visible street homelessness and encampments. She emphasizes that living on the street is a humanitarian crisis and that unhoused individuals are overwhelmingly the primary victims of violent street crimes. She contends that moving individuals indoors into shelter, combined with cleaning up graffiti and clearing street debris, is essential for improving both actual safety and public perception.
When Graham asks whether Los Angeles simply needs more police officers, Raman points out the operational realities facing the city: despite repeated efforts to expand headcount, the Los Angeles Police Department (LAPD) is actively shrinking due to high rates of retirement and resignation. Raman advocates for stabilizing the department by hiring to match attrition, which requires speeding up the city's sluggish Personnel Department recruitment pipeline. At the same time, she argues the city must relieve sworn officers from non-emergency duties, stating: “I also really do think it's important for us to take a lot of the calls that are currently coming to Los LAPD off their plates.”
[01:09:53](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4193s) Unarmed Mental Health Teams vs. Armed Police Responses
Councilmember Nithya Raman explains that the Los Angeles Police Department receives thousands of calls for service that do not actually require armed officers. She brings up the common scenario of an unhoused person sitting on a sidewalk, possibly talking to themselves, who might make a resident feel uncomfortable but is not committing a crime or posing an active danger to anyone. Graham Stephan immediately pushes back, arguing that in his personal experience, calls to the police aren't about someone merely sitting on the sidewalk: “Anytime the police have been called, it's because they're doing drugs in public.”
Raman clarifies that there is an entire category of non-violent, non-criminal calls where individuals simply need help. By deploying dedicated, unarmed mental health teams instead of armed LAPD officers, the city can alleviate a massive burden from the police department's shoulders. She points out that pilot teams deployed in Hollywood, Los Feliz, Sherman Oaks, and Van Nuys have proven to be both more effective and rarely ever require LAPD backup. This strategy preserves armed personnel specifically for incidents that require law enforcement intervention.
```mermaid
flowchart TD
accTitle: 911 Call Routing Strategy
accDescr: Flowchart showing how incoming service calls are triaged between armed LAPD officers and unarmed mental health teams.
A["Incoming 911 / Service Call"] --> B{"Triage Call Type"}
subgraph NonViolent["Unarmed Intervention"]
B -->|"Mental health crisis / sidewalk disturbance"| C["Unarmed Mental Health Responders"]
C --> D["Provide social care & de-escalation"]
D -.->|"Rarely needed"| E["Call LAPD backup"]
end
subgraph ArmedResponse["Armed Intervention"]
B -->|"Active crime / public drug use / violence"| F["Armed LAPD Officers"]
F --> G["Law enforcement & public safety"]
end
```
- Unarmed response initiatives are currently operating in parts of Hollywood, Los Feliz, Sherman Oaks, and Van Nuys.
- Unarmed responders almost never need to request LAPD backup, freeing up officers for critical emergencies.
[01:11:32](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4292s) Bureaucratic Hurdles in LAPD Hiring and Civilianizing Desk Duty
Graham observes that police officers have felt villainized in recent years, making law enforcement an unappealing career compared to his childhood dream of joining the force. Raman acknowledges past cultural shifts but argues that negative perception is not the real reason Los Angeles struggles to hire personnel. Instead, she blames severe bureaucratic bottlenecks inside the city’s personnel department, noting that it can take a full year just to process an applicant into a police recruit class.
Addressing LAPD staffing levels, Graham notes that while both sides want sufficient policing, spending inefficiencies persist. Raman advocates for maintaining the current force size while optimizing operations: sworn officers currently stuck doing administrative desk jobs should be replaced with civilian hires so badge-carrying officers can return to field patrol. Furthermore, she stresses that the city's basic car and patrol deployment plans date back 30 years and desperately need modernization for the realities of 2026.
Jack Selby briefly derails the serious debate with an anecdote, quipping that there are already too many police because he just got pulled over on his way to the studio while using Tesla’s Full Self-Driving. He jokes that after donating $100,000 to the police and fire departments, all he wanted was a bumper sticker so officers would leave him alone.
- It currently takes up to an entire calendar year to process an applicant into an LAPD recruit academy class.
- The LAPD's core patrol distribution and basic car plans are roughly 30 years old and have not kept pace with modern city growth.
- Sworn officers frequently perform administrative and clerical tasks that could be handled entirely by civilian staff.
[01:13:46](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4426s) Determining the Right Police Force Size and Response Metrics
When Graham asks why the current force size should be viewed as optimal rather than expanded, Raman refers to a RAND Corporation study comparing per capita police ratios. While California cities maintain fewer officers per capita than older metropolitan areas like New York or Chicago, Los Angeles remains relatively consistent with peer cities like San Francisco and San Diego (with outlier enclaves like Beverly Hills maintaining unusually high officer counts). Raman argues that the true benchmark should not be an arbitrary head-count, but whether staffing matches the actual volume and nature of service calls across neighborhoods.
Graham and Jack highlight that moving officers from desk jobs to the street is functionally identical to hiring more field officers if the end goal is achieving manageable response times, ideally under 10 minutes. Raman states her ultimate objective: “I want to have a system in Los Angeles where if you call 911 for help, that someone picks up the phone quickly and that the right person shows up for your call.”
The hosts acknowledge that average response time metrics must account for severe nuances:
- In-progress violent crimes or active emergencies require immediate, minute-by-minute responses (with Jack jokingly floating drone response units).
- Non-violent property incidents, such as a burglary where the suspect has long fled, currently face wait times ranging from several hours to multiple days.
- Raman insists that the city must run thorough studies to establish concrete, realistic response-time benchmarks for each call tier and hold the system accountable to them.
[01:17:24](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4644s) Rethinking City Responses and the DSA Association
Nithya Raman wraps up her vision for optimizing city services by rethinking basic emergency dispatching. Rather than sending armed police officers to routine incidents after the fact, such as taking a report after a burglar has already fled the scene, the city should look at who can be deployed quickly to collect evidence and ensure the paperwork is handled properly. She insists the city needs clear operational standards and responsiveness, which can only come through thorough analysis. Jack Selby jokes about Raman's endurance, asking how she manages the stamina for such an intense interview. Raman laughs that she feels like she is in the hot seat, but playfully offers to flip the dynamic around and grill the hosts instead.
```mermaid
flowchart TD
accTitle: Rethinking Municipal Emergency Response
accDescr: A flowchart illustrating the alternative dispatch method suggested by Nithya Raman for non-violent incidents.
subgraph Incident["Reported Incident"]
A["Non-Violent Call / Burglary (Suspect Fled)"]
end
Selby pivots the conversation toward the Democratic Socialists of America (DSA), noting that many voters dismiss Raman entirely because of her endorsement by the group. He admits that in most elections, he likely would have dismissed her too had he not researched her actual stances. Selby wants to press her on the more extreme platform planks promoted by the DSA—such as abolishing prisons, the Senate, and the Constitution—to allow her to clarify where she stands for moderate and conservative voters. Raman immediately rejects these positions: “Well, I don't want to do any of that, so I just want to be very clear.”
[01:19:10](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4750s) Private Property, Corporate Ownership, and the Big Tent
Selby presses Raman on other controversial DSA platforms, specifically the idea of expropriating private property so the government owns all housing, effectively preventing individuals and private landlords from owning real estate. Raman explains that while she believes public housing has an essential role to play, the private market is indispensable. She emphasizes: “Private also plays a role. Must play a role in—I mean, does play a role and must play a role, and continue to play a role, and my goal is to make it better.” She wants an environment that protects renters while remaining appealing for private development and investment.
When Selby brings up the nationalization of large private companies like Walmart or Tesla, Raman states plainly that she believes in corporate enterprise. She remarks wryly that the Trump administration has engaged in more government interventions and ownership than people care to admit. While Selby questions whether the DSA withheld support following disagreements over the mansion tax, Raman clarifies that the organization did endorse her again despite ongoing policy friction. Raman describes her coalition as a deliberate broad tent necessary to unseat entrenched establishment politics, which she defines as treating voters like a foregone conclusion rather than constantly working to earn their trust:
> “I want to be a mayor that works every day to earn Angelenos' trust.”
Selby agrees with the sentiment, emphasizing that voters should not have to show up to the ballot box holding their noses. He notes that while many people he knows plan to vote for incumbent Mayor Karen Bass, virtually none are enthusiastic about doing so.
- **Private Property Rights**: Raman rejects expropriation, arguing the city must foster private investment and homebuilding alongside public housing options.
- **Corporate Enterprise**: Raman explicitly affirms support for corporate enterprise over state-run industry.
- **DSA Relations**: Acknowledges real internal friction and debate over housing policy, but emphasizes building an expansive, non-establishment coalition.
[01:21:55](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4915s) Taxation, City Hall Trust, and Earning the Vote
The discussion shifts to municipal financial policy and whether Raman would pursue a wealth tax targeting millionaires and billionaires. Raman confirms her philosophical belief that high earners should contribute more because greater societal stability benefits everyone: “I think that wealthier people should pay more in taxes.” Graham Stephan pushes back, noting that between state and federal levies, wealthy Californians already pay over 50% in taxes, questioning when enough is enough. Stephan insists that the city squanders the revenues it already takes in, arguing: “Show results before we increase taxes.”
Raman clarifies that City Hall currently lacks the moral authority and public credibility to raise taxes anyway:
> “The city of Los Angeles—it does not have the trust of its residents right now. The City Hall has lost the faith and trust of Angelenos. And so, even if I wanted to pass a tax right now, I don't think I could get it passed.”
To illustrate her point, Raman points to June ballot measures where Los Angeles voters rejected both a tourism tax—which would not even have been paid by local residents—and a dedicated tax for repairing broken streetlights. She argues that city leaders must deliver reliable basic services and restore public faith before asking for another dime.
The exchange prompts Selby to offer an endorsement. He explains that even though he and Raman disagree sharply on many issues, he would vote for her over the alternatives simply because she was willing to sit down for an open, unedited, long-form conversation without demanding editorial concessions. In an era where most political figures dodge tough forums and hide behind canned talking points, Selby deeply respects her willingness to engage in raw and nuanced public debate.
[01:25:06](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=5106s) Accountability in Politics and Rebuilding Public Trust
Graham Stephan wraps up the core critique of politicians who refuse to engage in substantive debates, remarking that when leaders avoid tough venues, the only logical takeaway is an ideological unwillingness to justify their policy stances. Graham explicitly notes that their team invited Los Angeles Mayor Karen Bass to appear on the podcast to debate these topics, but they never received a response. In contrast, he commends Councilmember Nithya Raman for accepting the invitation, stepping into an adversarial setting, and speaking transparently on record.
Nithya Raman expresses mutual gratitude, recognizing that while she and the hosts hold sharp ideological and political disagreements, engaging directly is vital for local governance. She looks forward to reconnecting after future elections to evaluate the actual outcomes of local policies. Graham offers to act as an open resource or sounding board on housing matters moving forward, recalling that his childhood roots in Los Angeles and frustrating personal experiences as a local landlord motivate his desire to help repair the system.
- Graham Stephan calls out unresponsive leadership: “And in fairness as well, we did reach out to Karen Bass. We never heard back.”
- Nithya Raman sets a benchmark for civic accountability: “I know that yeah, there's probably a lot that we have real disagreements about, but I hope that if I am elected mayor that we can have this conversation in two years and that you'll say yes, I have more trust and faith in the city of Los Angeles.”
- Graham extends an open invitation to consult on real estate concerns: “And if I could ever be of service or just a sounding board for housing policy... I would love to be available at any point because I like I said, I grew up here and unfortunately I've had really bad experiences.”
[01:26:05](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=5165s) Closing Appeal to Voters and Preview of the Next Episode
Facing the camera directly as the interview concludes, Raman addresses skeptical viewers and potential voters ahead of the election. She maintains that practical governance supersedes doctrine, urging residents to participate at the ballot box. Following warm goodbyes, the show transitions into a high-energy teaser for an upcoming fitness-themed episode featuring bodybuilding critiques, influencer drama, and performance-enhancing drug debates.
The trailer features provocative questions regarding fitness culture, fat-shaming, steroid abuse among teenagers, and public friction involving prominent fitness figures like Greg Doucette and Dr. Mike Israetel.
- Nithya Raman delivers her closing pledge to skeptical constituents: “My strongest ideology is delivering results for the residents of Los Angeles.”
- A guest in the preview boldly challenges athletic ideals: “Bodybuilding is the worst sport you could possibly do.”
- Another voice in the teaser questions modern dating and fitness priorities: “Look, spend less time on that and get a job and have some money. Girls care about your wallet.”
- The preview highlights rising concerns around adolescent steroid use: “Like 16-year-olds are doing steroids now and bragging about it. It's at at this point it's it's insane.”
## Notable quotes
> [06:25](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=385s) We need to make it easier, cheaper, faster to build more housing. And the biggest obstacle to building more housing in Los Angeles is often the government. — Nithya Raman
> [18:01](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=1081s) The rent control restrictions make it so that you cannot run as a mom-and-pop landlord in California at all. — Graham Stephan
> [01:21:55](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4915s) Show results before we increase taxes. — Graham Stephan
> [01:13:46](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=4426s) I want to have a system in Los Angeles where if you call 911 for help, that someone picks up the phone quickly and that the right person shows up for your call. — Nithya Raman
> [00:00](https://www.youtube.com/watch?v=iGGWGk7YU_I&t=0s) If we want to raise taxes, we got to earn trust again. And I am here to earn your trust. — Nithya Raman
## Mentioned
Nithya Raman, Graham Stephan, Jack Selby, Karen Bass, Nick Shirley, Daniel Lurie, Northwest Registered Agent, Cash App, Faire, Shopify, Los Angeles Department of Water and Power (LADWP), Community Redevelopment Agency (CRA), Measure ULA, Costa-Hawkins Rental Housing Act, Rent Stabilization Ordinance (RSO), Ellis Act, Inside Safe, CIRCLE, Senate Bill 43, Twin Towers Correctional Facility, Los Angeles Police Department (LAPD), Los Angeles Convention Center, Bureau of Homelessness Oversight, Los Angeles City Controller, RAND Corporation, Democratic Socialists of America (DSA), Walmart, Tesla, Donald Trump, Greg Doucette, Mike Israetel
## Video description
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Timestamps:
00:00:00 - Intro
00:04:29 - How To Fix LA's Housing Crisis
00:09:42 - Is LA's Mansion Tax Backfiring?
00:15:19 - Sponsor: Northwest Registered Agent
00:16:31 - Graham's LA Landlord Nightmare
00:22:41 - Are LA Landlords Getting Screwed?
00:31:23 - Sponsor: Cash App
00:32:32 - Sponsor: Faire
00:33:46 - Why Affordable Housing Costs $1 Million Per Unit
00:39:46 - Where LA's Homeless Money Actually Goes
00:44:54 - What Actually Causes Homelessness?
00:53:13 - Is LA's $400M Homeless Program Working?
01:01:14 - Sponsor: Shopify
01:02:27 - The $6 Billion Convention Center Bet
01:08:03 - Does LA Need More Police?
01:18:11 - Would Nithya Raise Taxes On The Rich?
01:26:32 - WATCH THE NEXT EPISODE!
For Podcast Inquiries, please DM @icedcoffeehour on Instagram!
*Some of the links and other products that appear on this video are from companies which Graham Stephan & Jack Selby will earn an affiliate commission or referral bonus. Graham Stephan & Jack Selby are part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Los Angeles City Councilmember and mayoral candidate Nithya Raman debates real estate investor Graham Stephan, arguing that structural bureaucratic delays, unmonitored vendor contracts, and slow permitting—rather than progressive aspirations alone—paralyze the city's housing and homelessness response. While Stephan contends that punitive regulations and transfer taxes have driven capital out of California, Raman insists City Hall must restore operational competence and fiscal accountability before asking residents for renewed trust.
Permitting Bottlenecks, Housing Supply, and Measure ULA (6:25)
Raman and Stephan agree that municipal bureaucracy remains a primary bottleneck to closing the state-estimated 500,000-unit housing deficit in Los Angeles. Raman advocates for a binding permitting "shot clock" that caps reviews at 60 days for zoning-compliant projects and 120 days for non-compliant developments, with the city refunding permit fees if deadlines are missed. She notes that while California's Costa-Hawkins Act exempts post-1978 construction from local rent stabilization, permitting delays, entitlement fees, and unpredictable utility assessments from the Los Angeles Department of Water and Power continue to suppress private building.
Stephan counters that local multi-family property values have dropped roughly 29% to 30% over four years, citing burdensome tenant rules and costly compliance hurdles—such as waiting six months and spending $40,000 to repair a sewer line under a public sidewalk. Addressing Measure ULA (the real estate transfer tax on properties over $5 million), Raman concedes that subsequent studies indicate the tax chilled new multi-family development, leading her to sponsor city council legislation to exempt new apartment construction from the tax entirely.
Homelessness Strategy, Provider Accountability, and Program Costs (39:46)
Stephan challenges the effectiveness of municipal homelessness expenditures, highlighting that despite roughly $2.2 billion in regional spending and approximately $400 million directed to Mayor Karen Bass's Inside Safe initiative, unsheltered homelessness rose 7.9% across the city. Raman criticizes Inside Safe for placing individuals into motel rooms at costs reaching $100,000 per person annually, noting that approximately 40% of participants eventually cycle back onto the street. She argues instead for scaling time-limited rental vouchers, which cost between $29,000 and $35,000 annually per person and maintain a 75% housing retention rate after two years.
Contrasting citywide numbers with Council District 4, Raman reports a 70% reduction in tents and RVs over three years and a 49% drop in unsheltered individuals in the past year. She attributes this outcome to hands-on contract management: tracking street caseworkers directly, auditing documentation pipelines for IDs and benefits, and terminating partnerships with non-profit service providers that fail to meet performance metrics.
LAPD Recruitment Hurdles and Unarmed Emergency Dispatch (68:03)
Responding to concerns regarding public safety, open drug use, and neighborhood security, Raman attributes LAPD staffing shortages to administrative friction rather than purely anti-police sentiment. She points out that the city's personnel department currently takes up to an entire calendar year to process an applicant into the police recruit academy, causing the force to shrink through ongoing retirements and departures.
To optimize law enforcement capacity, Raman proposes replacing sworn officers in administrative desk roles with civilian personnel to return badge-carrying officers to field patrols, alongside updating 30-year-old patrol deployment maps. Furthermore, she advocates routing non-violent incidents, psychiatric distress, and delayed burglary report filing away from armed officers to unarmed units like CIRCLE (Crisis and Incident Response through Community-Led Engagement), preserving sworn officers for active emergencies and violent crime.
Fiscal Oversight, Capital Bets, and Public Trust (62:27)
Evaluating whether Los Angeles faces a spending or revenue deficit, Stephan points to high-risk capital proposals, such as the proposed $6 billion Downtown Convention Center expansion ($2.9 billion baseline capital plus roughly $3 billion in debt service), which is projected to run an operating deficit of $90 million annually for 30 years. Raman acknowledges that the city suffers from profound execution deficits across basic services, from repairing streetlights and clearing graffiti to maintaining roadways.
While affirming her philosophical stance that wealthy earners should contribute more to public stability, Raman concedes that City Hall currently lacks the public credibility required to raise taxes, pointing to voter rejection of recent ballot measures for tourism and streetlight assessments. While addressing her endorsement by the Democratic Socialists of America, Raman distances herself from platforms advocating the expropriation of private property, stating that private real estate capital is indispensable to resolving the housing crisis.
The exchange reveals a shared recognition between real estate investors and progressive local leadership that municipal administrative paralysis is crippling basic city functions in Los Angeles. However, whether Raman's proposed reforms—such as permitting shot clocks, vendor audits, and civilianized dispatch—can overcome deep-seated bureaucratic resistance without further alienating the private capital needed for housing supply remains unresolved.
[6:25] Nithya Raman: We need to make it easier, cheaper, faster to build more housing. And the biggest obstacle to building more housing in Los Angeles is often the government.
[18:01] Graham Stephan: The rent control restrictions make it so that you cannot run as a mom-and-pop landlord in California at all.
[81:55] Graham Stephan: Show results before we increase taxes.
[73:46] Nithya Raman: I want to have a system in Los Angeles where if you call 911 for help, that someone picks up the phone quickly and that the right person shows up for your call.
[0:00] Nithya Raman: If we want to raise taxes, we got to earn trust again. And I am here to earn your trust.
Original transcript
[0:00] Los Angeles to me is the epitome of the
[0:02] American dream. [music]
[0:03] >> So, what would you tell me when I say
[0:05] I'm never going to invest another dollar
[0:07] in California real estate ever again?
[0:08] >> Well, I hope to change that.
[0:10] >> Councilwoman Nithya Raman filed to run
[0:12] just [music] hours before the deadline.
[0:13] Raman and Bass are going from allies to
[0:16] opponents. So, what do you think are the
[0:17] biggest issues facing Los Angeles?
[0:19] >> Homelessness and housing costs. And
[0:21] they're two sides of the same coin.
[0:23] >> Researchers found that more than 171,000
[0:26] people experience [music]
[0:27] homelessness daily across California.
[0:29] >> What I am saying is we will audit every
[0:31] dollar. We will monitor performance. We
[0:34] will ensure
[0:34] >> But that's But isn't that what everyone
[0:36] else said? Everyone else is saying
[0:38] >> I already did it in 6 years. If we want
[0:39] [music] to raise taxes, we got to earn
[0:41] trust again. And I am here to earn your
[0:43] trust.
[0:44] >> Yeah, but [music] why should we tax
[0:45] first before actually getting the
[0:46] spending under control?
[0:47] >> That's not what I'm I just literally
[0:48] said the opposite, sir.
[0:49] >> Speaking of waste, fraud, and abuse,
[0:51] what do you think [music] of Nick
[0:52] Shirley?
[0:52] >> My hope is that we build a system here
[0:54] in Los Angeles where Nick Shirley cannot
[0:57] come and find anything to complain
[0:59] about.
[1:03] >> Hey everybody. So, I usually don't do a
[1:04] disclaimer like this, but with this
[1:06] episode, I have to. I left Los Angeles
[1:08] about 6 years ago because I was really
[1:10] unhappy with the living conditions
[1:12] there, and Nithya Raman is currently
[1:14] running for mayor of Los Angeles. We
[1:17] reached out to both her and Karen Bass
[1:19] to come on. Karen Bass never got back to
[1:21] us, but Nithya did, and it got a little
[1:24] contentious in a few moments.
[1:26] >> If there's not a crime happening there,
[1:28] if they're not a threat to themselves
[1:29] >> a crime.
[1:30] >> And they're they're doing drugs.
[1:31] >> Well, they're No, they're they're just
[1:32] sitting on your sidewalk and
[1:33] >> doing they're doing drugs.
[1:35] >> Well, that's a different situation.
[1:36] >> Yeah, but I do think that we should give
[1:37] her a lot of credit because she agreed
[1:40] to come on. She didn't have to do this,
[1:42] and she said that we could ask her
[1:43] whatever we wanted. So, with that said,
[1:46] I hope you enjoy the episode. Thanks so
[1:48] much. Let's get into it. Nithya and
[1:50] Jason, thank you so much for coming on
[1:51] the Ice Coffee Hour. This is a very
[1:54] unique panel of guests. Just the fact
[1:56] that you're willing to sit down and have
[1:59] a conversation, open dialogue, I think
[2:01] is extremely commendable because it's
[2:03] super, super rare. So, we appreciate
[2:05] that.
[2:05] >> and I appreciate you guys doing the same
[2:07] thing. And and you.
[2:08] >> So, this is something that's really
[2:09] interesting for me because you're
[2:11] running for mayor of Los Angeles and I
[2:13] left LA.
[2:14] >> Yeah.
[2:15] >> A lot of the policies for me were really
[2:17] bad and I didn't
[2:18] >> Monica, right?
[2:19] >> I grew up in Los Angeles. Before Santa
[2:21] Monica, it was West Adams.
[2:23] >> Okay.
[2:23] >> And so, I've lived there for years. I
[2:25] moved to Santa Monica and it just
[2:26] progressively got worse. And it wasn't
[2:28] just Santa Monica, it was everywhere.
[2:29] Jack's family's also from, you know,
[2:31] Ventura County. So, he grew up there. He
[2:33] was living uh with us in Santa Monica as
[2:35] well.
[2:36] So, I'm curious, for mayor specifically,
[2:40] what powers does the mayor actually
[2:43] have?
[2:43] >> We have a weaker mayor system than other
[2:47] cities. So, a city like New York or city
[2:49] like Boston, they have a more powerful
[2:52] mayor system. Here in California,
[2:55] we designed a lot you know,
[2:57] historically,
[2:59] people designed more decentralized
[3:02] governance structures and it was the old
[3:04] progressive movement that was pushing
[3:06] back against corruption um you know, in
[3:09] Chicago. And so, they wanted to make it
[3:12] they tried to ensure less corruption by
[3:13] making it more decentralized. So, we
[3:15] have weaker mayors, generally speaking,
[3:17] in California and on the West Coast and
[3:19] stronger city councils. But about a
[3:23] 25 years ago here in LA, there was a
[3:25] charter reform process that actually put
[3:27] more executive authority back in the
[3:29] mayor's seat. And so, the mayor of Los
[3:31] Angeles now has the ability to hire and
[3:33] fire every department head. They have
[3:35] the ability to actually set the
[3:38] priorities of each department. And they
[3:41] have the ability to make sure that they
[3:43] are designing the metrics through which
[3:45] those department heads are held
[3:46] accountable. And so, if you care about
[3:48] something, like if you care about
[3:50] responsiveness to trash complaints. You
[3:53] can actually generate metrics around
[3:56] that and hold your departmental
[3:57] leadership accountable around that. If
[3:58] you care about homelessness, which
[4:00] everyone does, you can actually say,
[4:02] "Hey, let's make a map of encampments.
[4:04] Let's make sure that the that the
[4:06] entities in responsible for it actually
[4:08] making progress for addressing
[4:09] encampments over time."
[4:11] When mayors don't use that power to
[4:13] actually push city departments to
[4:15] deliver for residents, it looks like the
[4:18] mayor is not as powerful. But, I want to
[4:21] use those powers. I want to make sure
[4:22] that we're actually governing LA. I want
[4:24] to make sure that we're pushing it in
[4:25] the right direction and that the
[4:26] departments are working to deliver
[4:28] results.
[4:29] >> So, what do you think are the biggest
[4:30] issues facing Los Angeles?
[4:31] >> The two that are I think the biggest are
[4:33] homelessness and housing costs. And
[4:36] they're two sides of the same coin.
[4:38] >> Mhm.
[4:38] >> Uh obviously homelessness has other
[4:40] complexities in it, including mental
[4:42] health issues, substance use issues.
[4:45] But, if you look again at data from
[4:47] across cities in America, where you have
[4:49] the most unsheltered homelessness,
[4:51] people living on the streets, is also
[4:54] where you have the least affordable
[4:56] cities. And so, those two issues are
[4:58] very connected.
[4:59] >> Is it connected or is it that the
[5:00] homeless go to the areas where people
[5:02] have money to give?
[5:03] >> Most of the people who are experiencing
[5:05] homelessness in LA, especially outside
[5:08] of the beaches
[5:10] um and Hollywood, like I represent right
[5:12] now a lot of the Valley. And the people
[5:14] who are on the streets in the Valley,
[5:16] living near the river or in encampments,
[5:18] are mostly people who are from LA, who
[5:20] came to work, struggled, lost their
[5:23] homes, and are now on the streets. Uh or
[5:26] people who were born and raised here. Uh
[5:28] just like the composition of most
[5:29] Angelenos. In some parts of the city,
[5:32] there are places where it's a lot of
[5:33] people coming from other places. The
[5:35] beaches are
[5:37] you know, are one of those places. And
[5:39] there's also a little bit of outsider
[5:42] coming to LA in a neighborhood like
[5:44] Hollywood, which attracts actually a lot
[5:47] of LGBTQ youth who are
[5:50] you know, maybe not accepted at home and
[5:52] then they come to LA seeking that
[5:54] inclusion and acceptance. So, there's a
[5:56] couple of neighborhoods where there's
[5:57] definitely a lot of outsiders, but I
[5:59] would say for the most part people who
[6:01] are homeless in LA are from LA or were
[6:04] last housed in LA, came here to seek
[6:06] their fortunes, failed to do that, and
[6:08] then ended up on the streets.
[6:09] >> So, what would you argue is the highest
[6:12] impact
[6:13] lowest
[6:15] effort decision that needs to be made or
[6:17] change that needs to be made to
[6:19] positively affect the homeless
[6:21] population and to positively affect the
[6:23] housing costs impact?
[6:25] >> For housing costs, I think we need to
[6:27] build a lot more housing. The pub- the
[6:29] government cannot build all the housing
[6:31] that we need. So, it we cannot all be
[6:34] 100% affordable publicly funded housing
[6:36] to fill this housing shortage. The state
[6:38] estimates we need 500,000 more housing
[6:40] units in Los Angeles to fill the gap
[6:43] based on kind of what they estimate as
[6:45] the need locally.
[6:47] So, we need to make it easier, cheaper,
[6:49] faster to build more housing. And the
[6:52] biggest obstacle to building more
[6:54] housing in Los Angeles is often the
[6:57] government. We make it very hard to
[6:59] build apartments. But, we say apartments
[7:01] are the thing that we need the most of,
[7:03] but it has in LA we have the longest
[7:05] processes for approving new apartments.
[7:08] We have a lot of costs, permitting
[7:10] costs, entitlement costs, so on and so
[7:12] forth. DWP costs are often enormous and
[7:15] completely unpredictable. So, I think
[7:17] the more that we can do to make it
[7:19] cheaper, faster, easier to build housing
[7:22] and to ensure that we're pushing the
[7:24] private market to build the kind of
[7:26] housing we need, I think we can actually
[7:27] build more housing. And so,
[7:28] >> to push back on that. What about
[7:30] abolishing rent control? Wouldn't that
[7:32] make housing a lot better for privatized
[7:35] businesses to go and create more
[7:36] housing?
[7:36] >> So, here in LA, here in California
[7:39] overall, there is a um a state
[7:43] regulation that prevents
[7:46] new construction from falling under rent
[7:48] stabilization or rent control. So,
[7:50] anything built after 1978
[7:53] actually cannot have
[7:55] >> Yeah, but what about a 1975 to rent
[7:57] control tenants in there? You you can't
[7:59] tear down the building.
[8:00] >> what does rent control restrict new
[8:02] build new construction?
[8:03] >> It does.
[8:04] >> Well, okay, explain.
[8:06] >> Because land is limited and if you have
[8:08] a building, let's just say like my
[8:09] duplex, there was a tenant in there who
[8:11] was making well over $200,000 a year,
[8:13] they were under rent control. Getting
[8:15] them out for the sake of tearing it down
[8:17] and building a new four-unit
[8:19] >> Act if you actually want to tear it
[8:21] down, you can.
[8:22] >> But but that is another step. That's
[8:23] another regulation that someone now has
[8:25] to overcome to get them out to apply for
[8:26] the Ellis Act. All it takes is, you
[8:28] know, they go and get a free tenant
[8:30] attorney, delay the project for a year,
[8:32] landlord say, "It's not worth the risk.
[8:34] I'm not going to do it. I'm going to go
[8:35] somewhere else."
[8:36] >> Yeah, and I would say, you know, we have
[8:38] a ton of real estate that is along major
[8:42] corridors like Ventura or Sunset or
[8:46] Wilshire, which right now has no housing
[8:49] on it. Unlike most major cities, they
[8:51] just have single-story strip malls on
[8:53] it. And in other cities, you would
[8:55] actually see along these major
[8:57] boulevards, you would see more dense
[8:59] housing. You'd see apartments being
[9:01] built there.
[9:02] And this I think is These are places
[9:04] where it's absolutely appropriate and
[9:07] necessary to build more housing. So, I
[9:09] think there's a lot of places where
[9:10] there's potential to build. I'm not sure
[9:13] that a rent control policy that doesn't
[9:15] apply after 1978 is the biggest block to
[9:18] building more housing. I would say that
[9:20] making it, you know, by right to build
[9:22] along our major boulevards, making it
[9:24] much easier for the Department of Water
[9:26] and Power to show up and
[9:27] >> Yes, but the but the problem is that a
[9:28] lot of those buildings are built before
[9:30] 1978.
[9:31] >> But they're not many of them don't have
[9:32] any apartments in them at all. They're
[9:34] they're, you know, like a strip mall
[9:36] like this with no with no apartments.
[9:39] And so it wouldn't rent control wouldn't
[9:41] apply there.
[9:42] >> On April 1st, LA's so-called mansion tax
[9:45] kicks in.
[9:47] Supporters of the new tax celebrating in
[9:49] Koreatown today.
[9:51] >> That money is going to raise
[9:53] much needed funding for affordable
[9:54] housing and tenant protection.
[9:55] >> Here's how the mansion tax will work.
[9:58] Home sellers will have to pay an extra
[9:59] 4% tax on property sales over $5
[10:02] million.
[10:03] If your home is over $10 million, the
[10:05] tax goes up to 5 and 1/2%.
[10:08] >> Um cuz Nithya, you mean you and I think
[10:10] this might have been where we sparred,
[10:11] actually.
[10:12] >> Yes, actually we we sparred over the
[10:13] mansion tax. I was a supporter of the
[10:15] mansion tax coming in. It created a new
[10:17] source of funding for affordable housing
[10:20] construction that we didn't have after
[10:21] the CRA was dissolved in California. It
[10:24] created funds for things I know that
[10:26] you're probably very critical of, which
[10:28] is legal defense support and things like
[10:29] that.
[10:30] Uh and rent relief. So, direct payments
[10:32] to landlords for uh renters who have
[10:35] fallen behind, which actually has been a
[10:36] very good intervention that has helped
[10:38] renters stay in their homes and has
[10:40] helped landlords stay whole. So, I think
[10:41] there's a mixed bag of potential goods
[10:43] in there that I thought are important
[10:45] for Los Angeles. Mixed bag according to
[10:47] you, I would imagine.
[10:48] >> Mhm.
[10:49] >> And I was a supporter of it, and it came
[10:52] forward. And what has happened in the
[10:54] years since, and I know that there's a
[10:56] lot of disagreement out there about the
[10:58] data, but I the studies that I have seen
[11:01] suggest that the mansion tax has
[11:03] actually significantly impacted new
[11:07] apartment construction here in the city
[11:08] of Los Angeles.
[11:10] And for me, as someone who believes that
[11:12] unlocking new housing here in LA is the
[11:16] single most important thing to
[11:17] maintaining the city's resiliency into
[11:19] the future, to keeping it a place where
[11:21] people can come here and build their
[11:23] dreams here. If you can't afford to live
[11:24] here, you can't do that anymore. And if
[11:26] you're not building new housing units,
[11:29] you'll never be able to keep it a city
[11:30] of opportunity. And so, for me,
[11:32] reforming that mansion tax to exempt new
[11:35] multi-family construction was something
[11:37] that I felt was very, very important to
[11:39] do. I put forward an effort on the city
[11:41] council to do that. It for many reasons,
[11:44] it hasn't moved forward yet, but I do
[11:46] still, based on the data that I'm
[11:47] seeing, I still think that that's
[11:48] something important for LA. And I
[11:50] actually think that's a bigger factor in
[11:53] inhibiting new apartment construction
[11:56] than rent control because buildings
[11:58] after 1978 are not subject to that here.
[12:01] And because that has really been There's
[12:04] been such a stark difference. You can
[12:06] actually see the number of housing units
[12:07] that have dropped.
[12:08] >> so what would you tell me when I say I'm
[12:11] never going to invest another dollar in
[12:12] California real estate ever again?
[12:14] >> Well, I hope to change that. You know, I
[12:16] think that there this I believe that
[12:19] this is the most incredible place in the
[12:21] world to live. The weather is perfect.
[12:23] The food is incredible. It has the
[12:26] atmosphere that I want from a city,
[12:28] which is an atmosphere that invites
[12:30] people here to dream big here, to be
[12:32] entrepreneurial. Like, I moved to
[12:33] America when I was 6 years old. Los
[12:35] Angeles to me is the epitome of the
[12:37] American dream. Like, it is a place that
[12:39] invites people here to work hard and to
[12:42] change their lives. Like, that's There's
[12:44] a spirit about this city that feels
[12:45] really powerful to me and that I don't
[12:48] think is everywhere in America
[12:49] necessarily or rather it's much more
[12:52] keenly felt here for me than in any
[12:54] other part of America that I've been to.
[12:55] But, you know, I would say that if we
[12:58] can address our unsheltered homelessness
[13:01] crisis and and we can get a we can
[13:02] really wrap our arms around that, I
[13:04] think we can bring investment back into
[13:07] Los Angeles. And I also think that if we
[13:09] can
[13:10] find common ground to I don't think
[13:13] whether you're progressive or you're
[13:15] more moderate or you're more
[13:16] conservative, no one likes government
[13:19] red tape. No one likes
[13:21] um regulations that stand in the way of
[13:24] creativity and entrepreneurship. No one
[13:26] likes regulations that stand in the way
[13:28] of small businesses being able to
[13:30] function well. Like there's a lot of
[13:31] common ground here for reforms that I
[13:34] hope can bring investment and trust back
[13:37] to Los Angeles. And that's part of the
[13:38] work that I want to do.
[13:39] >> I just want to say though, I feel like
[13:41] we oftentimes hear from politicians that
[13:44] they want to deregulate, they want to
[13:46] make communities safer, they want to
[13:47] protect local wildlife, they want to do
[13:49] this, they want to do that. But what
[13:51] does that actually materially mean from
[13:52] a policy perspective? Like if you say
[13:54] that we all here agree that we need to
[13:56] build more homes and decrease red tape.
[13:59] It's like well what policy is the
[14:01] specific one that's getting in the way
[14:03] of most people that would build if this
[14:05] policy was gone, but because it's there,
[14:07] this is preventing them from actually
[14:09] increasing the housing supply. Like it
[14:11] once once you get into office, people
[14:13] say "Day one, I'm repealing this act,
[14:15] I'm fixing this, and I'm removing this
[14:17] person from office and putting this
[14:18] person in."
[14:19] >> So it's I mean this is it feels
[14:21] fairly straightforward to have for
[14:23] simple interventions like
[14:26] sidewalk dining, which in a city like
[14:28] Los Angeles where the weather is
[14:29] wonderful, you want obviously to have a
[14:31] few cafe tables on your sidewalk, rather
[14:34] than having a city process which is
[14:36] lengthy, potentially costly, has
[14:38] multiple inspectors coming in, just have
[14:40] restaurateurs be able to follow a
[14:42] straightforward set of rules and
[14:44] self-certify that they're meeting those
[14:46] regulations, and you come out and audit
[14:48] every once in a while, but that you
[14:50] don't actually need to have a expensive
[14:53] permitting process in order to do
[14:55] something that feels very very
[14:56] straightforward. Daniel Lurie in San
[14:59] Francisco did the same thing. It was one
[15:01] of the first things that he did when he
[15:03] came into office. And I was like this is
[15:05] very straightforward. And I would not
[15:06] say that this is a
[15:08] left-wing or right-wing thing. It's just
[15:10] a straightforward thing to allow the
[15:12] thing that we all love, which is great
[15:14] food in LA, to be able to thrive.
[15:16] >> But what about the housing stuff?
[15:17] Because I feel like yeah, restaurants
[15:18] are one thing. And really quick, I just
[15:20] want to say that cutting the red tape on
[15:22] something as simple as a few cafe tables
[15:24] just makes a lot of sense. Nobody is out
[15:26] there opening up a restaurant because
[15:28] they're excited to deal with permits and
[15:30] inspections.
[15:31] >> Yeah, when you're starting a business,
[15:32] you want your time and money going into
[15:33] the actual business, not a bunch of
[15:35] costly steps before you've even opened
[15:37] up your doors. And really one of the
[15:38] first things you need is just a way for
[15:40] people to find you. Because before
[15:42] anyone tries a new restaurant or hires a
[15:44] new business, they're going to look you
[15:46] up online. And if they can't find a
[15:47] website or a business email, a lot of
[15:49] people just move on to the next option.
[15:51] Which is why we love our partner
[15:53] Northwest Registered Agent because they
[15:54] give you a domain, website, business
[15:56] email, and dedicated business phone line
[15:59] for free.
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[16:08] your domain and website belong to you,
[16:09] so you could move them elsewhere.
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[16:12] started, support you as you grow, and
[16:14] keep you independent even if you never
[16:16] buy anything. So, if you're putting in
[16:17] the work to build a business, make it
[16:19] easy for people to find you and feel
[16:21] comfortable reaching out. Get started
[16:22] for free at
[16:23] northwestregisteredagent.com/ich.
[16:27] >> That is northwestregisteredagent.com/ich
[16:30] or just click the link down below in the
[16:32] description. But what about the housing
[16:34] stuff? Because I feel like yeah,
[16:35] restaurants are one thing.
[16:36] >> Yes, but so with housing, one of the
[16:38] things that I've proposed is a shot
[16:40] clock. So, a shot clock is a deadline by
[16:42] which departments have to respond to
[16:44] your
[16:46] your
[16:47] request for a permit or an entitlement.
[16:50] And so, I'm saying 60 days for
[16:54] a zoning compliant project, 120 days for
[16:57] a non-zoning compliant project, and
[16:59] making sure that the city of Los Angeles
[17:02] is not going beyond that to give you the
[17:05] approval to build.
[17:06] >> And what is taking them so long?
[17:08] >> fees back if if they don't come get it
[17:10] in time.
[17:10] >> that there's an
[17:12] that you can actually say and enforce
[17:14] that by saying there's an incentive
[17:16] There's an incentive enforce that.
[17:17] >> what's the average length of time to
[17:19] pass these things right now? And like
[17:20] what's taking them so long?
[17:23] >> Oh, LA, they just did a study that
[17:25] compared approval timelines in Los
[17:28] Angeles versus I think it was
[17:31] one city in Colorado and
[17:35] a city in Texas. And we had double the
[17:38] time that it took in double or triple
[17:40] the
[17:40] >> your experience. I I want Nethia to hear
[17:42] your your experience about trying to
[17:43] permit an ADU. If you could quickly just
[17:45] walk through that.
[17:46] >> Oh gosh. Yeah, so I set up an ADU and I
[17:49] started building it. The approval to get
[17:51] it initially constructed really easy,
[17:54] but to get the certificate of occupancy
[17:55] for a tenant to move in took months. And
[17:58] what
[17:58] >> that city of LA or Santa Monica?
[18:00] >> of LA.
[18:01] >> Okay.
[18:01] >> Uh all of my rental housing by the way
[18:03] was city of LA. And I applied for the
[18:07] certificate of occupancy. The first time
[18:08] the guy never showed up. The second time
[18:10] the guy showed up, inspected it, and he
[18:13] said because this AC condenser line was
[18:16] like not properly installed,
[18:19] we had to reschedule him. And my
[18:21] contractor said, "It's a 20-minute fix.
[18:24] >> That's just a simple
[18:25] >> Yeah, we'll do it right now and then you
[18:26] sign off on it." He said it was Friday
[18:29] and he wanted to get home early and
[18:31] didn't want to wait, but said that he
[18:32] could call in and reschedule it.
[18:35] And that was it.
[18:36] And we rescheduled it. The next guy
[18:38] comes out and comes up with a new list
[18:40] of things that the first guy never even
[18:42] mentioned. Said, "Well, no, that's fine,
[18:43] but this and this and this and this."
[18:45] >> Right.
[18:45] >> Contractor, "You never pointed this out
[18:47] to me. Well, now you need to do that.
[18:49] Fix those things." Now, the third guy
[18:51] comes out and says, "No, this is all
[18:52] fine, but we need to do a sewer line
[18:54] inspection." The contractor said, "No
[18:56] one's ever told me that." Yeah, but now
[18:58] you need to do it. We did a sewer line
[18:59] inspection. They found a crack in the
[19:01] sewer line. We had a tenant who was
[19:03] supposed to be moving in.
[19:04] >> Mhm.
[19:04] >> And they said we can't issue the
[19:06] certificate until you get the sewer line
[19:08] fixed. And we said, "How about this? We
[19:10] just We'll sign a writing that we fix it
[19:12] 30 days. Let the tenant move in with a
[19:14] conditional
[19:15] No, we can't do that. So, we go in to
[19:17] try to fix the sewer line. It's $40,000.
[19:20] But to get to the sewer line, you have
[19:21] to break the city's sidewalk. And so now
[19:23] we have to wait for another person to
[19:25] come out to give us approval to cut the
[19:28] city sidewalk. That was another $8,000.
[19:30] It was a delay of about 6 months. In the
[19:32] process of that, I got a fine
[19:36] uh for not planting a tree
[19:38] in front of the median. And after the
[19:41] whole experience made me to say, "I'm
[19:43] out of here." It's like it's not worth
[19:45] it. The rent control restrictions make
[19:47] it so that you cannot run as a
[19:50] mom-and-pop landlord in California at
[19:52] all. There is zero incentive, which
[19:53] makes me think if I'm selling out, I'm
[19:55] getting out, who's going to maintain any
[19:57] rental housing? And I know a lot of
[19:59] landlords because their tenants are
[20:00] paying so little, they do nothing.
[20:02] They're living in dilapidated
[20:03] conditions, and the rent control is not
[20:07] applicable. It it it applies to the same
[20:09] person making $30,000 as the same person
[20:11] making $500,000 a year. And I've seen
[20:13] people making a half a million dollars a
[20:14] year who get the same rent control
[20:16] treatment as the other person who's
[20:17] barely scraping by.
[20:19] >> Didn't you offer your tenant money to
[20:21] leave?
[20:21] >> $40,000 to leave, and they said no.
[20:24] And by the way, this is this is a very
[20:25] well-to-do family. These are not people
[20:27] who are struggling. And they wanted
[20:29] initially $80,000 to
[20:31] >> they're making over $200,000 a year,
[20:33] these tenants. They're they're
[20:34] I think there's a lot of good that uh
[20:36] comes with rent control, but I think
[20:39] that human nature tends to take
[20:41] advantage of of power. And and if you
[20:43] give if there's too much power on one
[20:45] side, and and we can disagree whether
[20:48] there is or not, but I think you would
[20:49] be surprised at how cuz I deal with it
[20:51] all the time. For I'll give you an
[20:52] example. I was trying to sell uh well, I
[20:55] was trying to sell a house uh $4.5
[20:57] million house in Beverly Hills. The guy
[20:58] guy's father passed away. He inherited
[21:00] it. He's living in the house. There's a
[21:01] squatter in the house. And he's been
[21:04] trying to get him out for a year and a
[21:05] half.
[21:05] >> In Beverly Hills?
[21:06] >> In Beverly Hills.
[21:07] >> The city of Beverly Hills.
[21:08] >> The city of Beverly Hills.
[21:08] >> Even they don't with squatters.
[21:09] >> No. No, I guess good point though, it is
[21:11] Beverly Hills. But, um and and I just
[21:13] walked away. I said, "Dude, I'm not I
[21:15] can't deal with this. I can't sell this
[21:16] house with this guy in this house." Then
[21:18] I had a This is a duplex in LA, and the
[21:20] tenant refused to allow us to photograph
[21:23] her. She wouldn't let us in. And then,
[21:25] we So, we used this aerial photographs.
[21:26] We got into escrow. And then the
[21:27] appraiser came to measure it, and she
[21:30] wouldn't allow the appraiser access. So,
[21:32] we lost that loan. We lost that buyer.
[21:34] And I said, "I cannot sell this
[21:35] property." Now, that
[21:37] tenant had no right to do that,
[21:38] obviously. Um but, what are you going to
[21:41] do? I mean, the it takes 6 months a year
[21:43] to go through court. So, I mean, the a
[21:45] lot of these owners just throw up their
[21:46] hands. They can't
[21:48] they can't compete with if they get free
[21:50] legal defense. They abuse the system.
[21:53] They don't want to leave. They don't
[21:54] want a new owner. They don't want
[21:55] anything. They can be purposely
[21:56] difficult. This is a small minority of
[21:57] tenants. I'm not suggesting it isn't.
[21:59] But, when you have such a like a
[22:01] dichotomy of power, there's so much
[22:04] abuse going on among tenants that try
[22:07] threaten I have tenants that are making
[22:09] a million dollars a year living in my
[22:10] house is paying $40,000 a month.
[22:13] And I can't sell that property because
[22:14] they won't move out unless I pay them a
[22:16] fortune. And I can only get one month
[22:18] security deposit. I had $300,000 of
[22:20] furniture stolen from some fraudster
[22:22] that lived ended up living in my house.
[22:24] He He was a lawyer. I don't know how he
[22:25] lost his license. Blah blah blah.
[22:27] I can't even get a security deposit for
[22:29] furniture because it goes all the way up
[22:31] to millionaires getting protected by the
[22:33] city of LA who are paying $40,000 a
[22:35] month. And I can't
[22:37] negotiate a fair contract with them
[22:39] because they have tenants rights, even
[22:40] though they're millionaires.
[22:41] >> Let me ask you this. How would you feel
[22:43] if landlords also got free legal
[22:46] assistance?
[22:47] >> If they qualified financially for it.
[22:49] >> Correct. Yeah, it's not First of all,
[22:51] it's not every renter that gets free
[22:53] legal assistance from the city. It's
[22:55] only renters that meet an income
[22:57] threshold. And that kind of policy was
[23:00] put in place because of the imbalance of
[23:03] power that did exist and that still
[23:05] continues to exist in many of the cases
[23:07] that we're seeing where when you have a
[23:09] very powerful landlord, a landlord who
[23:11] has a lot more financial resources,
[23:13] they are in court almost inevitably with
[23:17] with
[23:17] >> how do we know the landlord has more
[23:18] financial resources? What if it's
[23:20] someone generally they do?
[23:21] >> Generally they're they're they're
[23:22] property owners, they're making money
[23:24] and they are generally represented in
[23:25] courts and when tenants go into court,
[23:29] especially in cases look and exactly
[23:31] like you were saying, a small minority
[23:32] of tenants are bad actors. I think a
[23:35] small minority of landlords are bad
[23:37] actors. Like I I'm you know, I'm a real
[23:40] optimist. Like I really believe that
[23:41] most people are just good people who are
[23:43] trying to make a living and if we could
[23:45] just find a way for the rules to work
[23:47] better that most people would be able to
[23:48] get along, right?
[23:50] But there are bad actors who are trying
[23:51] to take advantage of the system and in
[23:53] those situations,
[23:55] uh renters without representation end up
[23:58] getting kicked out of their homes more
[23:59] often than not. And so to even the
[24:01] playing field, we uh you know, there
[24:04] there has been a push here in the city
[24:06] of Los Angeles to provide more of that
[24:08] legal support for renters as well.
[24:11] >> landlords? What about for a mom-and-pop
[24:13] landlord and they're breaking even?
[24:14] Maybe they're paying money every single
[24:16] month to keep the property that they
[24:18] worked for and maybe that's something
[24:20] that they saved decades for and now
[24:21] they're losing money and their tenants
[24:22] stopped paying.
[24:23] >> are resources for business owners as
[24:25] well. There's small business resources,
[24:26] there's business support that we're
[24:28] providing across the board to any kind
[24:30] of business owner.
[24:31] >> But not for evictions.
[24:33] It does not exist for evictions.
[24:35] >> Oh, I don't know. I'm I probably not.
[24:37] >> It does not.
[24:38] >> Yeah. But look, I I just want I'm I hear
[24:41] you on the that there are exceptions
[24:44] where these kinds of policies feel I
[24:47] think harder on landlords, but I will
[24:49] say that as someone who, you know, I
[24:52] have a council office, we get calls from
[24:54] constituents all the time. What we are
[24:57] seeing much more frequently is
[24:59] situations where renters may not know
[25:02] their rights, they're dealing with
[25:04] situations where there's
[25:05] um services being taken away in a unit
[25:08] where landlords are trying to
[25:11] you know, issue eviction notices even
[25:13] when they don't actually meet the
[25:14] criteria for issuing an eviction notice.
[25:17] So, what we're seeing much more
[25:18] frequently is the other side of the
[25:20] case, particularly in the city. And a
[25:22] lot of the rules and regulations are
[25:24] really trying to say, "Hey, this is a
[25:25] necessary thing. And if people get
[25:28] evicted, if people lose their homes,
[25:30] it's destabilizing for our neighborhoods
[25:32] and communities. So, is there a way in
[25:34] this environment to make this a more
[25:35] even playing field?" What you're saying
[25:38] is, "Oh, the playing field has gone too
[25:39] far in the other direction."
[25:41] >> that.
[25:41] >> And I would say I am in constant contact
[25:44] with people from
[25:46] uh not just from tenants associations,
[25:48] but also from landlords associations to
[25:49] say, "Show me the data." And if there
[25:52] is, you know, if there's really a crisis
[25:55] out there that people are exiting the
[25:57] market, if smaller mom-and-pop landlords
[25:59] are really facing those kinds of
[26:00] conditions, like let's make sure we're
[26:02] changing the policies. And I have always
[26:04] been very open to that, and I continue
[26:05] to be. So,
[26:06] >> What do you think is a What do you think
[26:07] is a fair rent control cap?
[26:09] >> Well, I think it's 3% or 4% now, didn't
[26:11] you
[26:12] >> It's yeah, 1 to
[26:12] >> It's No, it's less. It's whatever It's
[26:15] under CPI.
[26:16] >> In In LA, it is a 1 to 4%
[26:20] uh uh range, right now.
[26:21] >> Yes, but it's under CPI. So, whatever
[26:23] It's 90% of CPI.
[26:25] >> Mhm.
[26:25] >> But, that's not necessarily taking into
[26:27] account the insurance raises, the
[26:29] utility raises, the plumber who's
[26:31] costing double, the electrician is
[26:33] costing double, all of the other
[26:34] expenses, which are way higher than CPI.
[26:37] >> Well, I would argue it's not even
[26:38] expenses. I mean, this as a as a I think
[26:40] an important data point, multi-family in
[26:42] Los Angeles is the value of those
[26:44] properties are down about 30% in the
[26:46] last 4 years. So, a $2 million
[26:49] >> Why do you think that is?
[26:50] >> It's a multitude of reasons.
[26:52] High interest rates is certainly a
[26:53] significant aspect. Although, that
[26:56] wouldn't explain the the discrepancy
[26:57] between a more significant drop in value
[27:00] in Los Angeles multi-family versus say
[27:02] Beverly Hills or Newport
[27:03] >> Or single family, cuz I own both. I have
[27:05] a single family and a duplex. The single
[27:06] family is up substantially
[27:08] >> that a lot of people are I mean, we're
[27:10] in debt we're now back to prices from
[27:12] about 10 years ago. So, if you bought a
[27:13] fourplex in 2017, you made zero money in
[27:18] 10 years. You could have put that money
[27:19] in the stock market and doubled it. So,
[27:21] it is hard to get people
[27:22] >> you probably made rental income from it.
[27:25] >> No, cuz you No, cuz you generally lose
[27:26] money every every month. If you buy a
[27:28] fourplex today for $2 million, it's a
[27:31] fourplex. You're probably going to lose
[27:33] a little bit every month. It's As a
[27:34] landlord, you cannot break even with
[27:36] rents right now. Even if you don't have
[27:38] rent control. You have rent control
[27:40] >> you're saying.
[27:40] >> No, I'm sorry. If you're buying any
[27:41] amount of real estate.
[27:42] >> Even if if you're buying a fourplex
[27:44] that's under rent control, well, then it
[27:46] depresses the price probably another 20,
[27:48] 30% depending on how many rent control.
[27:49] But, let's say there's no rent control
[27:51] at all. If you're buying a fourplex
[27:53] today
[27:54] for $2 million, and that's it's probably
[27:56] going to cost you about call it $12,000
[27:58] a month to carry that property with your
[28:00] your loan and your property taxes,
[28:02] whatever. You're not going to get
[28:03] $12,000 in rent. You'll probably get 10
[28:05] to 11. So, most landlords lose
[28:08] about, you know, whatever, one or $2,000
[28:10] a a month to carry their property. Now,
[28:13] they generally would like to expect and
[28:14] appreciate that their assets going to
[28:16] appreciate. But, we're back down to
[28:18] asset values of 10 years ago. So, not
[28:20] only they losing every month for the
[28:21] last 10 years, most
[28:23] I'd say most people that own
[28:24] multi-family in LA lose a little bit of
[28:26] money every month. And unless they
[28:29] bought it when interest rates were
[28:30] extremely low, maybe they're breaking
[28:32] even. But, now they're not making any
[28:34] money on the asset. So, they're saying,
[28:36] "Why am I going to own multi-family in
[28:37] LA?" So, they sell and that reduces the
[28:39] price more and then you go buy somewhere
[28:40] else. So, there's definitely data points
[28:42] showing I think it's 29% is actually
[28:44] what apartments have gone down in the
[28:46] last 4 years in LA. Across across the
[28:48] board. Some where you have let's say a
[28:50] tenant paying $1,200 a month and the
[28:53] market is 2,100 where no one wants to go
[28:56] in there and buy that cuz they know that
[28:57] person's never going to leave. And so
[28:59] they're never going to be able to get
[29:00] increase their rent. So they're not
[29:01] getting near that fourplex. So that
[29:02] owner who's owned it for 20 years
[29:04] everyone's stuck. Now I get that
[29:06] obviously you don't want to displace
[29:07] that person either. So there are a lot
[29:09] of complicated interests, but it is
[29:11] worth understanding like how devastated
[29:14] the asset values of multifamily in Los
[29:16] Angeles have have gone in the last few
[29:18] years.
[29:19] >> Right. So let's if we were getting back
[29:21] to the question of kind of the question
[29:24] that you started with which is what is
[29:25] the big intervention that you would make
[29:28] to increase housing production here? I
[29:31] would ask the same thing to you as
[29:33] someone who's dealing with this issue
[29:34] and looking at kind of changes in
[29:36] pricing. What would you say to a policy
[29:38] maker who wanted to make a difference?
[29:40] >> I I agree with a lot of what you said.
[29:42] For one, I I really think that you if
[29:44] you if you get in there, I think you're
[29:45] going to remove a lot of red tape. And I
[29:47] think you've got a lot of good
[29:48] strategies on increasing housing
[29:49] including
[29:50] removing the mansion tax possibly which
[29:52] I think is a huge one.
[29:53] >> It'll take Yeah, it will have to go back
[29:55] to the voters and all that.
[29:56] >> Yes, of course. I'm not holding you to
[29:57] it, but I know that you at least are
[29:59] willing to look at the data.
[30:00] >> Yeah.
[30:01] >> Uh where I think and maybe this is
[30:02] superficial cuz this is a very
[30:04] complicated topic, but where I would
[30:05] appreciate us
[30:07] is saying as a community we want to to
[30:10] make sure that we don't displace people
[30:12] cuz that's going to make the homeless
[30:13] problem worse.
[30:13] >> Right.
[30:14] >> And we can't just raise someone's rent
[30:16] from $1,200 to $1,800. But what I would
[30:18] appreciate is if if because it's
[30:20] important and we can all agree it's
[30:21] important, why don't we give vouchers to
[30:23] tenants? Let's let the free market work
[30:27] so that we don't destroy the values and
[30:28] we don't get people wanting to leave in
[30:30] from investing in LA. Why don't we give
[30:32] that tenant say, "Hey, your rent's going
[30:34] to be able to go up, you know, to
[30:35] market, but we're going to as a society
[30:37] we we believe that we can't we're going
[30:39] to give you the money so you can give it
[30:41] to your landlord." So, it's a way of
[30:43] saying and I don't even mind so rather
[30:45] than putting it all on landlords and
[30:47] saying you're just going to have to
[30:48] suffer, why don't we all pay our taxes,
[30:50] give it to tenants who qualify, and let
[30:52] them use that voucher to a landlord so
[30:55] we have a free market.
[30:56] >> But would that be temporary? Because I
[30:57] feel like that would just then be a
[30:59] bleeding system if you're just
[31:00] constantly feeding these people that
[31:01] can't technically afford the market
[31:03] price.
[31:04] >> I think we do that.
[31:04] >> And then it just seems like a lottery
[31:05] system that oh you just so happen to
[31:07] have rented your place 30 years ago.
[31:09] >> And so anyone who makes under a certain
[31:11] amount of money can get
[31:14] I I I doesn't really bother me. I don't
[31:16] mind supporting the people that need it.
[31:18] >> why should rent control also be
[31:19] indefinite? Why not just apply for
[31:21] something like 10 years?
[31:22] >> Wherever you land on the rent control
[31:24] debate, going from $1,200 to $1,800 a
[31:27] month is a huge jump and with rent going
[31:29] up every dollar matters.
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[33:45] >> So, why should rent control also be
[33:47] indefinite? Why not just apply for
[33:48] something like 10 years?
[33:50] >> So, here's I think one of the challenges
[33:52] that we face as as a policy maker
[33:55] looking at the housing market is that if
[33:57] you are just using
[34:00] relying on the private real estate
[34:02] market to produce housing, what ends up
[34:04] happening is that the market does a very
[34:06] good job of producing housing for higher
[34:09] end
[34:10] renters and for like higher income
[34:12] people. But as you get into people into
[34:15] that kind of section of the population
[34:18] that is making
[34:20] lower than you know
[34:22] um average incomes in an area or
[34:25] significantly lower than that, the
[34:27] market is just not producing units that
[34:30] people can afford.
[34:31] >> Yeah, but and so and so in those
[34:32] situations what you end up with is
[34:34] overcrowding, right? So, what's one way
[34:36] that people have solved that problem?
[34:38] It's by having multiple families live in
[34:40] a single home, or by having multiple
[34:42] people live in a single home. And so,
[34:44] you have neighborhoods here in Los
[34:45] Angeles that are some of the most
[34:48] overcrowded neighborhoods in the entire
[34:51] country because you have eight people
[34:53] living in a one-bedroom apartment.
[34:55] That's how COVID spread so much in
[34:57] certain neighborhoods here in LA, but it
[34:59] was actually a response to the market
[35:02] not providing housing for the poorest
[35:05] residents. So, my question
[35:07] >> though if you build more units?
[35:08] >> Potentially, right? So, but my question
[35:09] is if the market is never producing for
[35:11] people who are amongst the lowest
[35:14] income, what is the response? What is
[35:17] the
[35:17] >> Well, what about allowing more height?
[35:19] Allowing more density?
[35:20] >> two things. One, look at maybe
[35:21] subsidizing it. One is look at So,
[35:23] that's where I think a voucher program
[35:24] could be helpful, you know, where
[35:26] >> we I think we do subsidize and allow I
[35:28] mean, if there's if you build low-income
[35:31] housing, you get a lot of subsidy. You
[35:32] get a lot of density for that.
[35:33] >> here's two things. Number one is Austin.
[35:34] Look at Austin, Texas. They built a lot.
[35:36] They privatized everything and housing
[35:37] prices are down about 30% because they
[35:39] built so much. Second, here in LA, it's
[35:42] land. Land is so expensive because
[35:44] everyone wants to live in Santa Monica,
[35:45] Venice Beach, Marina del Rey.
[35:47] Why should those areas have low-income
[35:51] housing when there is cheaper land
[35:53] that's further inland?
[35:55] Why should someone have the right to
[35:57] live in Santa Monica
[35:59] versus 20 minutes east?
[36:01] >> I think it's less about the right to
[36:04] live in Santa Monica and more about what
[36:06] kind of communities you're trying to
[36:09] support here. Like, are you saying
[36:12] if if I were a resident of Santa Monica
[36:14] now, I would want a rich, vibrant
[36:16] community around me. I would want
[36:17] residents who've been in Santa Monica
[36:19] for a long time to be able to stay in
[36:21] Santa Monica and enrich the community of
[36:23] Santa Monica. I would want newcomers to
[36:25] be able to come and build their dreams
[36:27] in Santa Monica as well. And I don't
[36:29] think those two have to be in opposition
[36:31] to one another. And so that's the policy
[36:33] mix that we're trying to find here. I
[36:35] don't believe that you have to think
[36:37] about housing policies as a zero-sum
[36:40] game. I think there are ways to ensure
[36:43] that we are stabilizing existing
[36:45] communities, stabilizing existing
[36:46] residents while also encouraging new
[36:49] housing construction in the
[36:50] >> wait, look at the voucher program that I
[36:52] just suggested. Under that voucher
[36:54] program, you're still stuck. You
[36:55] >> they won't go they won't go they won't
[36:57] live they won't live in Beverly Hills,
[36:59] they won't live in Santa Monica cuz they
[37:00] can't afford it. So they'll take their
[37:01] voucher and they'll live where the
[37:03] market dictates that they would live.
[37:04] >> It sounds that sounds like a bleeding
[37:06] system where so much money's going to be
[37:07] just misappropriate and abused. And I'll
[37:10] give you an example in terms of
[37:11] >> I have more faith that the government
[37:12] would can do right if given
[37:14] >> give you an example for a Santa Monica,
[37:16] by the way. There's a parking structure
[37:18] that is being torn down. You could build
[37:21] a ton of units, but instead what they're
[37:23] doing is low-income housing. And each
[37:25] unit is an estimated cost of a million
[37:28] dollars because it's government-funded.
[37:30] A million dollars unit is insane. This
[37:34] should not happen this should not happen
[37:36] at all. And I think if you privatize the
[37:38] market, people would have an incentive
[37:40] just to build as much as they can and
[37:42] yes, land is expensive and yes, not
[37:45] everyone's going to be able to live in
[37:46] certain cities, but that just is the
[37:48] name of the game. That's just how life
[37:50] works.
[37:51] >> But I don't think you're for the
[37:52] government spending $800,000 a unit unit
[37:54] building in low-income
[37:55] >> I think a lot of some of the the the
[37:58] policies that have gotten us to a place
[38:00] where each unit is costing so much
[38:03] money, I think do have to they deserve
[38:05] real scrutiny. So, you know, a single
[38:08] unit in those or single building
[38:11] that's an affordable housing unit often
[38:13] requires eight different sources of
[38:16] financing in order to get built, right?
[38:18] So you're getting state funding, you're
[38:19] getting city funding, you're getting
[38:21] federal funding and by the time you put
[38:24] all of these different pieces of funding
[38:25] together, you've basically sat on the
[38:27] land for six, seven years, then there's
[38:31] a lawsuit, then you're waiting to build
[38:32] again, and you're slowed further. And
[38:35] all of that time, you are paying
[38:37] for the land that you've bought and
[38:39] you're sitting on. And so, I think
[38:41] you've actually increased the cost of
[38:43] that housing through the exactly this
[38:45] kind of red tape and regulatory
[38:47] environment that we're subjecting this
[38:49] to.
[38:49] >> And then unions also, by the way,
[38:51] increase costs a lot. I know that's a
[38:52] little sticky topic, but let's not
[38:54] >> you know, I I think that's this is a
[38:56] this is a
[38:57] I think a something that
[38:59] Angelenos, Californians have said, "If
[39:02] we're using public money, we should be
[39:04] making sure that the workers who are
[39:05] working on those units are able to make
[39:08] a good living." That's a policy decision
[39:10] that's been made in California, that's
[39:11] been made in Los Angeles. And I think if
[39:13] you ask most people who lived here, they
[39:15] would sup- support that, you know? Um
[39:17] and I understand it increases the cost,
[39:19] but I think we say when we're using
[39:21] public funding, it should be trying to
[39:23] do that. So, that will yes, that will
[39:24] mean that each individual unit costs a
[39:26] little bit more, but there's all these
[39:28] other ways that we can reduce the fun-
[39:30] the costs for those individual units,
[39:32] like making it a single source of
[39:34] funding, making sure that Department of
[39:36] Water and Power is not adding time and
[39:38] costs to those projects. Like, there are
[39:40] ways to reduce the cost of that funding
[39:43] that the city is not taking up yet, and
[39:44] I want to make sure that it's doing
[39:46] that.
[39:46] >> What about the amount of money spent on
[39:48] homelessness? That has exploded lately,
[39:50] and homelessness has not been getting
[39:52] any better. I would argue, if anything,
[39:53] some areas have gotten substantially
[39:55] worse over the last 6 years. Also,
[39:56] statistically, they went up this year
[39:58] under Bass, 7.9% despite 400 million
[40:02] being spent on
[40:03] uh inside safe, and 2.2 billion
[40:05] approximately being spent overall.
[40:07] >> So, this is a huge issue, and I believe
[40:10] that we do need spending on homelessness
[40:12] to address it. I think we've also lost
[40:14] the trust of the people on this issue.
[40:16] And so, a lot of the work that I have
[40:18] done on my time on City Council and the
[40:20] work that I want to do as mayor is in
[40:22] making sure that we are tracking every
[40:24] single dollar that we are investing in
[40:26] what works and we're making sure that
[40:28] every single dollar is actually leading
[40:30] to people moving off the streets. Here's
[40:32] what has worked. In my district we had
[40:34] very different outcomes from the rest of
[40:35] the city. I've had a 70% reduction in
[40:38] tents, RVs, and encampments over 3
[40:39] years. Just last year we had a 49%
[40:42] reduction in unsheltered people because
[40:45] of the relentless work of our office and
[40:47] because we're making sure that every
[40:49] single step of that process has
[40:51] oversight and accountability. And that's
[40:53] >> you guys do differently?
[40:54] >> We're ensuring that when we are bringing
[40:56] people indoors, so we're making sure
[40:59] that outreach workers, when we're
[41:00] funding them, are actually going out to
[41:01] encampments and working with people on
[41:03] their path to housing, right? We're
[41:04] holding them accountable for that. We're
[41:06] making sure that once people get into
[41:08] shelter that they're able to stay in
[41:10] shelter. So if you look at our housing
[41:12] sites, we have four shelter sites that
[41:14] are in the district, we are working
[41:16] really hard to ensure that every single
[41:18] person in those shelters is getting
[41:19] access to substantial
[41:21] >> does it cost per person?
[41:23] >> It depends on the intervention, okay?
[41:26] >> Just on average. Like the average person
[41:28] on the street.
[41:28] >> So the the most successful intervention,
[41:30] the one that I think is
[41:32] is scalable, is called a time-limited
[41:35] subsidy program, which is a short-term
[41:37] rental voucher, exactly what what what
[41:39] Jason's been talking about. And what we
[41:42] what we have seen is that that
[41:43] short-term rental voucher, which is
[41:45] about it can be up to $2,000 a month for
[41:47] a for a apartment voucher subsidy, um
[41:51] that actually has 75%
[41:54] of participants staying housed after the
[41:56] 2-year voucher ends. And they stay
[41:59] housed through a number of different
[42:00] interventions. Maybe they go back to
[42:01] their families and reunite with their
[42:03] families. Maybe they actually build up
[42:05] to self-sufficiency. They're able to get
[42:07] work, they're able to pay for that unit
[42:09] themselves. Or three, they're able to
[42:10] get benefits. If they're veterans, let's
[42:13] get access to your veterans retirement.
[42:15] Let's make sure that you're getting the
[42:16] benefits that you need to stay housed.
[42:18] Whatever it is, that program results in
[42:20] really good outcomes for people and it's
[42:22] one of the cheapest, 29,000 per year to
[42:25] 35,000 dollars per year per person,
[42:27] significantly cheaper than inside safe,
[42:29] which can be up to 100,000 dollars per
[42:31] person per bed.
[42:32] >> What's the worst program to solve the
[42:35] homeless crisis?
[42:36] >> The worst program is the non-functional
[42:38] program. Is the program that is not it's
[42:41] not held accountable for outcomes.
[42:43] >> So, which one would that be and like why
[42:44] is it failing?
[42:45] >> I would say that if you don't have
[42:47] oversight over program, if you have a
[42:49] lot of turnover amongst your employees,
[42:52] if you have if you're not held
[42:54] accountable for making sure that people
[42:57] are getting access to their paperwork so
[42:59] that they can move into their next step
[43:01] in whatever it is, that that that work
[43:04] doesn't always happen. I mean, you've
[43:06] all worked in jobs before where if
[43:08] you're not held accountable for results,
[43:11] >> So,
[43:11] >> don't always deliver them. If you're if
[43:13] that's not what you are if that's not
[43:15] what you're being evaluated by,
[43:17] then that's not what you deliver.
[43:19] >> So,
[43:19] >> And I would say that everyone needs good
[43:21] management, everyone needs transparency
[43:23] and you know,
[43:25] you can have the exact same
[43:28] type of non-profit doing the exact same
[43:30] type of work and one will have great
[43:32] outcomes and one will have worse
[43:33] outcomes and the difference is
[43:35] management and you know that about every
[43:36] business across America.
[43:38] >> better at managing these people that are
[43:41] holding the people that get the vouchers
[43:43] >> We work with Yeah, we you if you are
[43:45] monitoring outcomes, you can actually
[43:48] take your dollars and put them in those
[43:50] non-profits that are delivering results
[43:52] for you. If you're monitoring
[43:54] performance, you actually are able to
[43:56] say, "Hey, this service provider is not
[43:59] delivering results. Let's move to this
[44:01] service provider."
[44:04] >> a perfectly fair answer, by the way. I
[44:05] mean, you haven't you seen two companies
[44:06] and one's well run and one's not well
[44:08] run.
[44:08] >> completely fair answer. I'm just curious
[44:09] like
[44:09] >> Cuz it's the same people.
[44:11] >> Yeah, but what is the delta? Is it
[44:12] literally just the management? Like you
[44:13] have either better employees
[44:15] >> a great business and a bad one?
[44:16] >> I'll tell you if you I mean if you have
[44:17] a question
[44:18] >> No, I would agree it's I would say that
[44:20] answer would be the same answer.
[44:21] >> the same idea, same premise, same style
[44:23] of two construction companies, one
[44:25] failing, one is not, then it's probably
[44:26] yeah, the team member.
[44:27] >> Right. So that but so that I would say
[44:29] the management yeah
[44:30] >> Yeah, the management yeah, that picks
[44:32] and moves around, organizes the teams.
[44:34] >> And so I would say that you have to be
[44:36] able to build a a homelessness response
[44:40] system here in the city of Los Angeles
[44:42] that is building trust with Angelenos
[44:44] again. It has to. And the only way
[44:46] you're going to do that is if you are
[44:47] monitoring performance and making sure
[44:49] you're putting money into those service
[44:51] providers that are delivering on
[44:53] results.
[44:54] >> what do you do? So what do you do with
[44:56] someone if they've been offered shelter
[44:58] 10 times and they refuse?
[45:00] >> So it really depends on the individual
[45:02] and I've dealt with so many people who
[45:04] are on the streets who when they're
[45:05] offered a shelter gladly take it. That's
[45:08] the majority of people. But there are
[45:10] individuals who are deeply mentally ill,
[45:13] who have real real mental health
[45:14] challenges. There are people who may be
[45:17] dealing with substance use issues. With
[45:19] those individuals, you have to follow
[45:22] different paths. I remember people with
[45:25] we had a gentleman who had PTSD. He was
[45:28] um
[45:29] he had fought and you know, been
[45:31] deployed as a as a in the army multiple
[45:35] times and dealt with a lot of issues as
[45:37] a result of that. It took outreach staff
[45:40] four months and he moved around. You
[45:42] know, he'd say, "Oh, we you can't be
[45:44] here." Um and then he would move around
[45:46] and we were finally able to build trust.
[45:48] He started accepting mental health
[45:50] treatment. He is now in his own
[45:52] apartment. He is working again and he's
[45:54] doing incredibly well.
[45:55] >> You know, and so that that So the again,
[45:58] with individuals who have deeper mental
[46:00] health issues, substance use challenges,
[46:01] whatever it is, there may be people who
[46:04] are
[46:05] you know, who are doing
[46:07] things that that are that are criminal
[46:09] activities, right? Drug sales and all of
[46:11] that. That is an LAPD pathway. For
[46:14] everyone else, it is relentless
[46:16] engagement, relentless work until they
[46:17] get off the street. To be honest with
[46:19] you, Angelenos, I don't think care how
[46:21] you deal with this problem. They would
[46:23] prefer that it be done with compassion,
[46:25] with services, with care and the
[46:27] shelter. And so, what I'm trying to do
[46:29] is make sure that the system
[46:30] that is built on service to shelter and
[46:32] housing works. Cuz I want them to
[46:34] believe that that can work, and I want
[46:35] to make sure that they can trust that
[46:37] system, and that they don't mind that
[46:38] their taxpayer dollars are
[46:39] >> what if they set up What if they set up
[46:41] an encampment? Should that be removed?
[46:44] >> If whatever the regulations are should
[46:46] be followed. It's not about
[46:48] >> but what do you think? Should the
[46:49] encampment be removed if it's on the
[46:51] sidewalk?
[46:51] >> If it's blocking the pathway, if it's
[46:54] doing all of that,
[46:55] of course it should be removed, but the
[46:57] question is if you remove it and don't
[46:59] offer that person another place to go,
[47:02] all that will happen is that they move
[47:04] across the street. Right? I don't have
[47:07] No one has in Los Angeles, we don't have
[47:09] the capacity to compel a person to
[47:14] uh accept shelter. That's
[47:15] >> Do you think that you should? Wait, can
[47:17] I Can I jump in here?
[47:18] >> this is Yeah, please
[47:19] >> to jump in cuz I actually researched
[47:20] this last night. One of the By the way,
[47:23] there's a I think Senate Bill 43, which
[47:24] has been expanded so that you can
[47:26] actually have involuntary
[47:27] conservatorship for people who are
[47:29] unable to take care of themselves,
[47:30] clothe themselves, feed themselves, etc.
[47:33] It is really hard to enforce that when
[47:35] you don't have
[47:36] beds a
[47:38] a and services around there that can
[47:40] actually take care of that person. Cuz
[47:42] are you going to put them in jail? We
[47:43] can't We don't have We don't have the
[47:44] room in jail, either.
[47:45] >> So, I mean, I grew up
[47:46] >> Twin Towers is our largest mental health
[47:48] facility, right? It's our largest mental
[47:50] health It's our big jail. Our county
[47:52] jail is our largest mental health
[47:53] facility. And uh you know, that's where
[47:56] a lot of people end up because the
[47:58] mental health care system is not taking
[47:59] people in because it is I think very
[48:02] very under-resourced.
[48:04] >> We I think we did fund a bond though, a
[48:06] California bond to build a lot
[48:08] >> kind of you know, it's still playing
[48:09] out. We got some of that funding to
[48:11] build um we're going to do a um
[48:14] What are they called? Not tiny homes,
[48:16] like a yeah, like a tiny homes facility
[48:18] for women in Hollywood.
[48:20] >> different types of beds you have to
[48:21] build. Some for people that don't need
[48:22] the conservatorship, some that do, some
[48:24] that need the medical treatment. So, you
[48:27] have to build
[48:28] multiple different types of beds over
[48:31] the next 5 years, and it's billions and
[48:32] billions and billions of dollars. And
[48:33] then you can start enforcing the
[48:36] conservatorships and Senate Bill 43 and
[48:38] >> So, the hard part is I I grew up in I
[48:40] grew up in Venice and Santa Monica, and
[48:42] it was compassion that I was raised
[48:44] with.
[48:44] >> Hold on. I just want to I just want to
[48:46] say to you that
[48:47] what what you have been experiencing is
[48:50] a system that is I think broadly has
[48:53] values that are aligned with Angelenos,
[48:56] but is not functioning as well as it
[48:58] could. And so, people are turning away
[49:00] from it because they're saying I'm I'm I
[49:02] can't I can't have compassion anymore
[49:04] because the problem needs to be
[49:05] addressed. What I am saying is we will
[49:07] audit every dollar. We will monitor
[49:10] performance. We will ensure
[49:11] >> But then But it's not what everyone else
[49:13] said. Everyone else has said
[49:15] >> I already did it in 6 years in my in my
[49:16] district. We've delivered results, and
[49:19] every Angeleno deserves that. I want you
[49:22] to not have to ask me this question
[49:23] again because our homeless services
[49:25] system is so responsive
[49:28] that when you see someone who is in an
[49:30] encampment that our team is already out
[49:32] there doing the work to get them
[49:33] indoors.
[49:35] That is the city that I want to build
[49:36] for you. I want you to not have to ask
[49:38] this question again. I'm tired of this
[49:40] hypothetical. What I want is a system
[49:42] that works. One that is aligned with the
[49:43] values of Angelenos, and I will build
[49:45] that.
[49:46] >> What I'm seeing a lot is people who are
[49:48] not mentally well whatsoever being
[49:50] offered shelter, but choosing instead to
[49:54] scream in the middle of the street, to
[49:57] throw rocks at to throw rocks at cars,
[49:59] the police take 2 hours to show up.
[50:02] People are passed out in the alley,
[50:04] they're doing drugs. My mother doesn't
[50:06] feel safe.
[50:07] Friends with kids don't want to go
[50:09] anywhere near the alley cuz there's
[50:11] constantly people roaming. Uh one time
[50:13] they called the police on people who
[50:14] were doing heroin.
[50:16] And the police said, "Well, you know,
[50:17] unless they're an active threat, we
[50:19] don't have time to show up." So we
[50:21] called back and said they're OD'ing. And
[50:23] immediately they showed up. And so I
[50:25] think that
[50:25] >> anything even when they do.
[50:27] >> Well, once once they showed up, the
[50:28] people are like, "Oh,
[50:29] uh and they they roamed off. Like that
[50:31] that's all that happened.
[50:33] >> This By the way, this has been around
[50:34] for unfortunately decades. It's been
[50:35] getting
[50:36] worse. It's probably the what you're
[50:38] going to be judged on as as mayor is as
[50:40] as how you handle homeless.
[50:41] >> It's never been as bad as I've seen in
[50:42] the last probably 3 or 4 years.
[50:44] >> Not not in my district, though. Like it
[50:46] has actually improved in my district.
[50:47] Big encampments that were there are not
[50:49] there anymore because we're doing the
[50:50] work.
[50:51] >> What's causing homelessness?
[50:53] >> It's definitely rooted in affordable
[50:55] housing issues, right? There used to be
[50:57] a large number of single room occupancy
[50:59] hotels and cheaper housing in Los
[51:01] Angeles. I'm not saying that people
[51:03] don't have mental health issues or
[51:05] substance use issues. There is a lot of
[51:07] that as well, but when housing was
[51:10] cheaper, people were indoors. People
[51:12] were in the single room occupancy
[51:14] hotels. People were indoors dealing with
[51:15] those same challenges. We had a
[51:17] different set of interventions to
[51:19] respond to those issues. Now, in a very,
[51:22] very expensive housing market, a lot of
[51:25] those people who are vulnerable in
[51:27] whatever way, who are, you know, one one
[51:31] one health
[51:32] issue away from um being kicked out of
[51:36] their apartment are now ending up on the
[51:38] streets. And then once you're on the
[51:40] streets, I think it's very, very hard to
[51:42] get back in the streets.
[51:43] >> And way more expensive to deal with it
[51:44] once
[51:44] >> expensive. Yeah, and it's much more
[51:46] expensive. And so I think at the root of
[51:48] it there is a housing issue that is at
[51:50] the root of it. That doesn't mean that
[51:51] there aren't mental health challenges or
[51:53] substance use challenges as well, but
[51:56] it's just at the root there is a it's it
[51:58] it is a housing issue.
[52:00] >> So you think if housing was cheaper we
[52:02] would not have as much
[52:03] >> Not as much unsheltered homelessness.
[52:05] Not as much unsheltered homelessness.
[52:07] >> I think that's just a correlative fact.
[52:09] You can't argue that. If we immediately
[52:11] have
[52:11] >> is mental health? Because just again
[52:13] anecdotally from what I've seen it seems
[52:15] like 80%
[52:16] are people with severe drug
[52:18] >> 11,000
[52:19] of the
[52:21] How many is it? How many people are
[52:22] homeless?
[52:22] 7,000 of the 70,000 estimates are
[52:25] between 11
[52:31] to 15,000 have anywhere from moderate to
[52:35] severe mental health.
[52:36] >> Why does it seem like it should be
[52:38] flipped? That it should be 75%?
[52:41] >> You're not A lot of the people that are
[52:42] unhoused and mentally stable um are not
[52:47] you know,
[52:48] screaming and yelling right outside my
[52:49] office here. So it it feels like so many
[52:51] of them have drug addiction and mental
[52:53] illness.
[52:53] >> The most visible people, the people who
[52:56] are So you'll never see the mother who
[52:59] is living in her car with her children
[53:02] or or couch surfing um you won't see
[53:05] them on the streets. But the people you
[53:06] see on the streets are people with
[53:08] mental health challenges. The people you
[53:10] see on the streets are the people who
[53:11] are going to be screaming and yelling.
[53:13] >> What do we do for those 20% that are
[53:15] severely mentally ill that should not be
[53:17] roaming the streets that could be
[53:19] >> What we do in the district is what I
[53:22] wanted make sure that we're doing
[53:23] citywide. Each of those people has an
[53:26] individual pathway forward, right?
[53:29] And whatever that pathway is, our job as
[53:31] a city is to push them into that
[53:33] pathway. So for some people it's going
[53:35] to be getting back on your meds. You do
[53:37] that with street medicine teams. You get
[53:39] take injections of antipsychotics.
[53:41] You're able to normalize and then you
[53:42] get back indoors. For some people
[53:44] >> parlay this by the way cuz right now
[53:46] you're calling the cop I don't mean to
[53:47] interrupt I'm just
[53:48] saying but there's a lot of
[53:50] policy positions that I agree with
[53:52] because we may agree to disagree on how
[53:55] much we fund the police and I know that
[53:56] you've agreed that your your position is
[53:58] not to to remove any funding from the
[54:00] police. But one way to help the police
[54:02] is to not have the police be doing these
[54:04] types of jobs. So can you get into
[54:05] >> Yeah, so you know, if we had what I want
[54:08] to invest in is making sure that we have
[54:10] unarmed mental health responders that
[54:13] can take so many of those calls for
[54:15] service off of LAPD's plate. That
[54:17] situation that you described where
[54:19] police showed up two hours after you
[54:22] called for help about people who are
[54:25] who are out of it in an alleyway. We
[54:27] actually have a tool to respond to that
[54:29] that would be would have been much more
[54:30] effective in that situation.
[54:32] Uh we have a something called a circle
[54:34] team which is uh trained homeless
[54:37] outreach and mental health crisis worker
[54:39] who can go out to those calls for
[54:40] service. They have a sobering center
[54:43] that they can bring people to. They say
[54:45] to folks, "Hey, you you're having a
[54:47] substance use issue, you can't be here
[54:49] but come with us."
[54:50] And they'll sit in their van and they
[54:52] can, you know, relax there. They can go
[54:55] to uh sobering center, they can sit
[54:57] there or they can go take them to a
[54:58] hospital. Whatever that pathway is, they
[55:01] can actually take them off the streets.
[55:03] Police are you know, they don't they
[55:05] don't have the time even to respond to
[55:07] these kinds of calls and they're not
[55:10] able to take action there unless there's
[55:12] an active crime being committed unless
[55:14] someone's being assaulted unless someone
[55:16] is in danger.
[55:17] >> Yeah.
[55:17] >> And so there's actually a response that
[55:19] can work. Let's actually build that out
[55:21] citywide and let's make sure that we're
[55:22] actually getting people with those
[55:24] challenges off the streets and into
[55:26] places where they can get
[55:28] treatment and care. And I think that
[55:30] will make
[55:31] the city better. That will make our our
[55:34] our response much more effective. There
[55:36] are people who need things who are
[55:38] dealing with mental health issues who
[55:40] may need things like involuntary
[55:41] conservatorship. That process is long
[55:43] for a reason. You're taking away
[55:45] someone's freedom. Um and
[55:48] that process is something that needs to
[55:49] be followed in those cases. There are
[55:51] other cases though where people can go
[55:53] into a mental health treatment bed or
[55:54] can get access to medications that can
[55:56] help them stabilize. That's what we need
[55:59] to be doing. Let's be out there doing
[56:01] that work, fighting for every bit of
[56:03] that care, making sure that it's being
[56:04] delivered in ways that actually
[56:06] addresses the issue.
[56:07] >> Speaking of your breath, I'm sorry, I
[56:08] want to follow up on this too by saying
[56:09] cuz I I feel like it's not a good enough
[56:11] answer for you because you're so
[56:12] frustrated with
[56:13] >> I know.
[56:13] >> And by the way, there's no there's no
[56:15] one no one can sit here and give you two
[56:16] sentences
[56:17] as to how we're going to address 10
[56:19] 15,000 mentally ill homeless people
[56:21] running in the streets. And I'm equally
[56:22] frustrated cuz it's outside my office
[56:23] all day long. But I will say
[56:26] that maybe the best and first thing that
[56:27] we can do is have a CEO and I'm not
[56:29] endorsing Nithya and I've got, you know,
[56:31] I think there's
[56:33] I'm not endorsing Karen Bass or Nithya.
[56:35] But I do believe that it takes a good
[56:37] CEO to get rid of fraud and abuse, to
[56:41] have to judge programs on their
[56:43] efficiency and on their success, and
[56:47] better manage the money. I mean, that
[56:49] really is the first step in solving
[56:51] >> And I and I would say in this
[56:53] you know, I am in a mayoral race, right?
[56:55] And I would just say
[56:56] I feel like
[56:58] the trust in the system and the results
[57:00] that we're seeing are worse under Bass.
[57:01] Our worse under Bass.
[57:03] >> Speaking of waste, fraud, and abuse,
[57:04] what do you think of Nick Schultz?
[57:06] >> I think that the I want people to trust
[57:09] government again.
[57:11] And so my hope is that we build a system
[57:13] here in Los Angeles where Nick Schultz
[57:16] cannot come and find anything to
[57:18] complain about. That's what I want to
[57:19] do.
[57:20] >> What do you think about the work he's
[57:21] doing and the fraud that he's allegedly
[57:24] >> think it needs to be personal to Nick. I
[57:25] think what Why don't we just address
[57:27] fraud, waste, and abuse?
[57:28] >> It's bad. It's like I believe in a
[57:30] system where people should trust that
[57:32] their taxpayer dollars are going towards
[57:34] good outcomes and good results, right?
[57:35] And so, that kind of if he's un-
[57:38] uncovering fraud, it's bad for
[57:40] government. It's bad for the cities that
[57:43] that that he's operating in. I Again, I
[57:45] want to make sure that we're building a
[57:47] city that he can't come to and
[57:49] >> just seems as though there's a lot of
[57:50] money funneling to
[57:52] homeless advocates and homeless
[57:56] programs
[57:57] and it creates an incentive for people
[57:59] not to really solve the problem
[58:01] >> But that's why That's why audits are
[58:03] important. That's why performance
[58:05] management is important. That's why
[58:06] transparency is important. That's why
[58:08] data is important.
[58:09] >> get all of that though? I want to know
[58:10] how to how do we increase transparency?
[58:13] Because that's the main thing. Like if I
[58:14] could go documentation on the budgets of
[58:17] local governments, federal governments
[58:19] is so complicated. It's inaccessible.
[58:22] But if there was a sheet that was passed
[58:24] out to every citizen or whatever or like
[58:26] a email or something that was sent out
[58:28] once a month. Hey, this is how much we
[58:30] made, this is how much we spent, this is
[58:32] what the spending actually achieved.
[58:34] Like I don't understand why we don't
[58:35] have something like that.
[58:36] >> Almost like public corporations have to
[58:38] do that every year.
[58:38] >> Like the the government would not pass
[58:40] an audit, right? And yet I'm supposed to
[58:42] be able to keep control of
[58:43] >> are audited all the time. There's so
[58:45] many audits.
[58:46] >> have I mean the Pentagon has failed its
[58:47] like eighth audit. And and everything
[58:49] runs in a deficit. There's a
[58:51] billion-dollar deficit here. Like where
[58:52] does the money go?
[58:53] >> of the controller cuz I think that Bass
[58:55] is
[58:55] >> Yes. So,
[58:57] to me it feels like transparency
[59:00] >> Oh, transparency is number one.
[59:01] >> Transparency is the key. Transparency is
[59:03] the absolute key. And I What part of the
[59:04] reason why I'm I'm you know, I'm I'm
[59:07] endorsed by our city controller who has
[59:09] asked to audit our homelessness dollars
[59:11] including Mayor Bass's inside safe
[59:14] intervention which is $400 million, 40%
[59:17] of participants back to the streets, you
[59:19] know, $100,000 per person per year, some
[59:22] of those most expensive motel rooms,
[59:25] most expensive interventions in
[59:26] homelessness. That is the exact kind of
[59:29] thing that we need to be auditing and
[59:31] being transparent about. And the way you
[59:34] can do it is by partnering with people
[59:35] like the city controller to not just
[59:38] make it transparent, but to make it
[59:39] easily legible for the public. Let's
[59:41] really show where our taxpayer dollars
[59:43] are going. Let's show where our beds
[59:46] are, how many of them are full on any
[59:48] given night, and how we can actually
[59:50] restore trust in the data that we're
[59:51] putting out there. Are we doing
[59:53] in-person visits to those sites? Are we
[59:55] actually making sure that this data is
[59:56] robust?
[59:57] That system is one that I have actually
[59:59] been trying to build at the city. I
[60:02] pushed really hard to create a Bureau of
[60:04] Homelessness Oversight. I created the
[60:06] first set of data and performance
[60:08] metrics at the city on these issues. And
[60:11] when I pushed harder to make it
[60:12] something that would be for every dollar
[60:14] in the city, this mayor and other people
[60:17] in leadership pushed back. And so that's
[60:18] part of the reason why I'm running.
[60:19] >> Why did they Why did they push back? Why
[60:21] do they not want the people to get
[60:22] better? I can't speak for them.
[60:24] It's
[60:25] >> It's 40 over 40%. I don't know if the
[60:27] word recidivism is is accurate, but 40%
[60:30] of the of the
[60:31] people that went into the program are
[60:32] back on the streets. It's an abysmal
[60:35] record.
[60:36] The
[60:37] the homeless count is up unsheltered
[60:40] count is up 7.9% this year. We spent
[60:42] Inside Safe
[60:44] Bass had a chance to to work on
[60:46] homelessness. That was her baby. Inside
[60:48] Safe it it has been an abject failure, I
[60:50] think, in many
[60:51] metrics, and homelessness is up. So, I
[60:55] mean, I don't think she wants people to
[60:56] audit that. I don't I mean, naturally, I
[60:58] don't think she'd want to have that
[60:59] audited.
[60:59] >> I think that we keep going back to
[61:01] homelessness, which is obviously it's a
[61:02] very pressing issue and extremely
[61:04] important to a lot of people that live
[61:05] here.
[61:06] I do want to go to the the fraud,
[61:09] though, and I am curious if you could
[61:10] answer one of two possible answers. Is
[61:14] it a spending problem or is it an income
[61:16] problem? And that's another question
[61:17] that a lot of business owners also ask
[61:19] themselves. It's like, am I having a
[61:21] spending problem or an income problem?
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[62:23] today to hear your first
[62:26] >> I think that we keep going back to
[62:27] homelessness, which is obviously it's a
[62:29] very pressing issue and extremely
[62:30] important to a lot of people that live
[62:32] here.
[62:33] I do want to go to the the fraud,
[62:35] though, and I am curious if you could
[62:37] answer one of two possible answers. Is
[62:40] it a spending problem or is it an income
[62:42] problem?
[62:43] >> Both are true, okay? Um we
[62:48] we definitely do not have the management
[62:51] and oversight that we need over many of
[62:53] our essential services to ensure that
[62:54] the city is delivering what Angelenos
[62:57] expect and deserve.
[62:59] Um whether it is on fixing potholes,
[63:01] fixing streetlights,
[63:03] uh on picking up trash, addressing
[63:04] graffiti,
[63:06] um investing in our parks and public
[63:08] spaces, these are all things that I
[63:10] think the departments can do better on
[63:12] delivering, and I think with better
[63:13] management, better oversight, we can
[63:15] deliver better outcomes and results.
[63:17] problems.
[63:17] >> County though is so much better in terms
[63:20] of their services?
[63:21] >> I want to interject cuz that's by the
[63:21] way it's such a complicated question
[63:23] what you just said, but I want to
[63:24] interject on a particular point but you
[63:26] you didn't raise but I think it's a good
[63:28] kind of litmus test for this.
[63:31] And I think we'll disagree on on the
[63:32] income cuz you know, I'm not as pro-tax
[63:34] as you probably, but
[63:36] Mayor Bass put
[63:37] pushed for a remodel/expansion
[63:40] of the downtown convention center.
[63:43] Through $2.9 billion project with
[63:45] another nearly $3 billion in financing.
[63:47] So it's going to cost nearly $6 billion.
[63:49] >> And by the way, that that that debt now
[63:52] is so much more expensive because of the
[63:54] the bond the government Have you seen
[63:55] the government bond market?
[63:57] Yeah, so it's going to be more
[63:58] expensive.
[63:59] >> It's like there's a high-speed rail.
[64:00] It's our It's the LA version of the
[64:02] California high-speed rail in terms of a
[64:04] boondoggle. Now, I understand that my
[64:06] personal belief is that is that Mayor
[64:08] Bass wanted to do this to placate the
[64:10] unions, to get a bring jobs to downtown,
[64:12] to get money in and endorsements into
[64:14] her campaign.
[64:15] >> Downtown
[64:17] A lot of the downtown business
[64:18] interests, Airbnb, were really pushing
[64:21] these this intervention.
[64:23] >> there was one or two city council
[64:24] members. I know you were one of them. I
[64:25] think there might have been one other
[64:26] that voted against this. And by the way,
[64:28] probably not in your interest in your
[64:30] political interest because the unions
[64:32] probably wanted this and the DSA
[64:34] probably wanted this etc. But
[64:36] I give her a lot of credit for this.
[64:38] It's actually one of my favorite things
[64:39] about your I think your approach to this
[64:41] is that you're not you don't just say
[64:42] yes to every project even if the unions
[64:44] are for it etc. But the city's and I'm
[64:47] sorry to belabor this cuz you're a
[64:48] national audience, but I'll be really
[64:49] quick. The city's own rosy scenario,
[64:52] meaning their own best-case scenario, is
[64:54] that the city of Los Angeles loses $90
[64:57] million a year. That's We don't make
[64:59] money on this investment.
[65:00] >> 30 years.
[65:01] >> Yeah, for 30 years. So we lose $90
[65:02] million and Karen Bass pushed this. And
[65:05] now our tax dollars, which who cares if
[65:07] it's income or expenditure? Let's say
[65:09] it's both.
[65:11] The
[65:12] You don't need to agree on the income.
[65:13] We definitely should not be throwing our
[65:15] money away so that politicians are
[65:16] getting endorsements and money into
[65:18] their into their political campaigns.
[65:20] And yes, of course the $6 billion is
[65:22] going to create jobs and it's obviously
[65:25] we're not burning the money. It's going
[65:26] to do some good. But why would you spend
[65:28] $6 billion if you're getting $5 billion
[65:30] back? That makes no sense. And she said,
[65:32] "No, this makes no sense." I I give you
[65:34] credit for that.
[65:35] >> Yeah, and then but this is the kind of
[65:37] thing that I you know,
[65:39] this is part of why I want to bring more
[65:41] people into into politics. I want more
[65:43] people looking at our local political
[65:45] system. I want more people making sure
[65:47] that politicians are actually pushing
[65:49] for things that actually deliver results
[65:51] for people. And I think that's that's at
[65:53] the heart of what you're asking for is
[65:55] transparency and accountability. And I I
[65:59] do think that if we have more people
[66:01] engaged in our local politics that these
[66:04] kinds of decisions which often get made,
[66:07] you know,
[66:08] in back rooms like they will come out
[66:10] into convention center expansion when
[66:13] the convention business is shrinking
[66:14] that just because downtown business
[66:16] interests
[66:24] want this that we don't necessarily need
[66:27] to invest
[66:29] $6 billion of our public funds in it at
[66:32] a time when the city is already
[66:34] financially unstable, when we have the
[66:36] Olympics coming in and we may be facing
[66:37] financial issues as a result of that. So
[66:40] I think this is exactly the kind of
[66:42] thing that we that I believe that cities
[66:45] can do better at is actually making the
[66:47] case for our public spending, making
[66:49] sure that dollars are being tracked,
[66:51] making sure that we're actually
[66:52] delivering results. And what I want to
[66:54] do as mayor.
[66:55] >> Honestly, even if it was an abject
[66:57] failure, but there was transparency, I
[67:00] would be like the first person in line,
[67:03] like a rooting just at the ballot box,
[67:05] like here we go, Nithya Raman, like
[67:06] let's go.
[67:07] >> Okay, well I can I can I will commit to
[67:09] transparency but I also hope that it's
[67:11] not going to be an object failure or
[67:13] actually deliver results.
[67:14] >> Like of course, yeah, right, naturally.
[67:15] >> some lofty goals.
[67:16] >> Obviously, that would be an amazing
[67:17] thing if it was a success. But for me,
[67:20] it's I just like feel like the the
[67:22] average person experiences all of the
[67:25] negatives and virtually zero of the
[67:28] positives of the local policy and they
[67:30] also have no idea why things are so bad.
[67:33] They don't even know and they ask
[67:34] questions like oh well how do you reduce
[67:36] homelessness? Well, we're going to
[67:37] bolster the initiatives and we're going
[67:39] to make it easier to build homes and
[67:41] we're going to do that. It's like okay,
[67:42] that's like sort of descript, sort of
[67:44] nondescript, it's not very specific. I
[67:46] don't know what change I can actually
[67:47] expect because it's really easy just to
[67:49] say this is the villain.
[67:51] Like identifying the problem is not
[67:53] solving it.
[67:53] >> Right, but let's let's audit every
[67:55] dollar. Let's be transparent about what
[67:58] what we're spending on and let us invest
[68:01] let's invest in what works.
[68:02] >> and yeah, I have a question. And how do
[68:03] you how do you expect to reduce crime?
[68:06] >> I think people are feeling unsafe, they
[68:09] feel a sense of of kind of insecurity
[68:12] because of street homelessness, because
[68:14] of
[68:15] you know, because of encampments being
[68:18] on the streets.
[68:21] And I think
[68:23] making sure that we're able to bring
[68:24] people indoors is really important. Is
[68:26] really important for safety and it's
[68:28] also important for perceptions of
[68:30] safety, you know? Studies have shown
[68:32] that people who are on the streets are
[68:35] also mostly the victims of crime. Like
[68:38] if there is crime in an area connected
[68:40] to homelessness, it's usually people who
[68:41] are experiencing homelessness
[68:43] themselves.
[68:43] >> it homeless on homeless crime though?
[68:45] >> I that it's hard, you know, people are
[68:47] but people are victims out there. It's
[68:49] you know, it's not safe to be on the
[68:50] streets for mostly
[68:53] for people who are actually on the
[68:54] streets themselves. Like bringing people
[68:55] indoors into safety is really important
[68:57] for me. It is a humanitarian crisis on
[68:59] the streets. But I also think that if we
[69:01] can address graffiti, address pick up
[69:04] trash, make sure that we're addressing
[69:06] street homelessness, bringing people
[69:07] into safety, I actually think that
[69:09] people will feel safer. People
[69:11] >> think like police wellness is Yeah, but
[69:13] do you Don't you think that we need more
[69:15] police officers?
[69:16] >> So the city has, you know, tried to hire
[69:19] more police officers, and our police
[69:22] force is shrinking.
[69:23] Um and so what a lot of the policies
[69:27] that I'm I'm talking about I've said I
[69:29] want to maintain this size of our
[69:30] existing police force. We need to make
[69:31] sure that we're hiring to attrition,
[69:33] which means improving our personnel
[69:35] department, making it easier and faster
[69:38] to recruit people. All you know, all
[69:40] stuff that I think needs to happen at
[69:41] the city of Los Angeles across the
[69:43] board. Uh but I also really do think
[69:46] it's important for us to take a lot of
[69:48] the calls that are currently coming to
[69:50] Los LAPD off their plates. That There's
[69:53] thousands of calls that are coming in,
[69:56] calls for service that are for things
[69:58] that you don't need armed officers to go
[70:00] go out for. Like the issue that you had
[70:02] with with a person who is on your
[70:04] sidewalk, who is clearly homeless, who
[70:07] is maybe not someone you feel
[70:09] comfortable talking to. LAPD would come
[70:11] out to that situation and not be able to
[70:13] do anything, right? If they're not If
[70:15] there's not a crime happening there, if
[70:17] they're not a threat to themselves or to
[70:18] >> a crime. They're They're doing drugs.
[70:20] >> Well, they're No, they're they're just
[70:21] sitting on your sidewalk
[70:22] >> they're doing They're doing drugs.
[70:24] >> Well, that's a different situation,
[70:26] right? What I'm talking about is someone
[70:27] sitting on your sidewalk talking to
[70:29] talking to themselves potentially.
[70:31] >> Oh, no, no, no, no. I mean, that that
[70:32] that's That's not what I'm talking
[70:34] Anytime the police have been called,
[70:35] it's because they're doing drugs in
[70:37] public.
[70:37] >> Right. So but what I'm talking about is
[70:39] there's a whole set of calls that are
[70:41] coming in for situations where people
[70:43] feel uncomfortable talking to an
[70:44] individual, but they clearly need some
[70:45] assistance, right? That is where you
[70:47] have this unarmed mental health
[70:49] responders, and if you actually build
[70:51] that out, you can take thousands of call
[70:53] load off of LAPD. Thousands of calls off
[70:56] of LAPD's plate. leave armed officers
[70:58] able to respond to the calls that you
[71:00] need armed officers to respond to, and
[71:02] you'll have actually trained responders
[71:04] for these other calls. We've done it in
[71:06] parts of Hollywood, we've done it in Los
[71:08] Feliz, there's a group that's responding
[71:10] to calls in Sherman Oaks and Van Nuys.
[71:12] In all of those places, what we've seen
[71:15] is that they are actually responding
[71:17] more effectively to those calls. They
[71:19] don't often almost never do they
[71:20] actually need to call LAPD as backup
[71:22] because those situations don't require
[71:25] police response at all, but they're
[71:26] actually able to deliver more safety,
[71:29] you know? More safety for the people who
[71:31] are calling.
[71:32] >> Also, if you can't hire and listen, I
[71:34] think both of us would want more police
[71:35] officers. There's obviously budgetary
[71:37] constraints, but it would probably be
[71:38] more of a priority
[71:39] >> think there's there's necessarily budget
[71:40] constraints because we're spending, you
[71:42] know, we're wasting all this money
[71:43] because we have the money for it.
[71:44] >> I I don't disagree with you on on hiring
[71:46] more police, but I I think the
[71:49] there's there is a compromise, which is
[71:50] if we're going to keep at least not let
[71:51] the police force shrink and keep it the
[71:53] same size that at least get those police
[71:56] officers out there handling crimes
[71:58] instead of being at desk jobs and
[72:00] instead of going out to calls
[72:02] >> also seems as the police officers lately
[72:04] have been villainized and there's less
[72:06] of an incentive anymore to become a
[72:08] police officer. Like I remember as a kid
[72:10] when I was like 6 years old, I want to
[72:11] be a police officer. I thought that was
[72:12] the coolest thing in the world.
[72:13] >> Same.
[72:14] >> Now it just seems like, oh, the police
[72:15] officer is the bad guy. We don't like
[72:17] the police officer.
[72:19] >> You know, I think that that environment
[72:22] is changing. I think that may have been
[72:23] true
[72:25] in the past, but I I don't feel like
[72:27] that is the that is the reason why we
[72:29] are not able to hire here in in Los
[72:32] Angeles. The reason why we're not able
[72:33] to hire is because our personnel
[72:35] department is very slow. It's because
[72:38] we're not able to even fill our recruit
[72:40] classes fast enough. It takes a year to
[72:42] bring someone into a recruit class. This
[72:44] is bureaucratic barriers that we're
[72:46] facing to hiring.
[72:48] >> What about the desk jobs that cuz I
[72:49] don't think they're
[72:50] >> So, there's like people in LAPD now who
[72:52] are doing jobs that are civilian jobs,
[72:55] administrative jobs, desk jobs. We need
[72:57] to think about how we can actually get
[72:59] people higher civilians to do that work
[73:01] and get police officers deployed. And I
[73:04] think thinking about deployment, making
[73:05] sure deployment is adapting to meet new
[73:08] conditions. Our basic car and patrol
[73:11] plans are from 30 years ago. Like let's
[73:13] actually have a conversation about what
[73:14] deployment looks like and what it needs
[73:16] to be for 2026.
[73:18] >> think we should keep the police officers
[73:20] the same. You don't think we should hire
[73:21] more.
[73:22] >> I want to maintain the size of our
[73:23] police force. That's what that's where
[73:24] we're at right now. And
[73:25] >> Why why do you believe that that is the
[73:27] right amount of police officers?
[73:28] >> it's too many cuz I got pulled over on
[73:30] the way over here.
[73:31] >> He did.
[73:32] >> On full self-driving by the way. Thanks
[73:34] Jason.
[73:34] >> the record to reflect that I donated
[73:36] $100,000 to the police department and
[73:38] fire department.
[73:38] >> What so they don't pull you over?
[73:39] >> And then it and then yeah and you're on
[73:41] your phone on full self-driving. All I
[73:42] wanted was a bumper sticker to put on
[73:43] that I donated so that I can't get
[73:44] messed with and I didn't get a bumper
[73:46] sticker.
[73:46] >> But what makes you think that the
[73:47] current amount is the right amount? Why
[73:49] not less and why not more? Why is this
[73:51] the perfect amount?
[73:52] >> So I think that's a good question. I
[73:54] That's by the way a question that should
[73:56] be asked is like what is the right
[73:57] number of officers to respond to these
[74:00] >> And we have lower officers per
[74:03] citizen than
[74:04] >> But if you it's interesting. I just
[74:05] looked at a comparison list of the
[74:07] number of officers
[74:09] like per capita officers comparing a
[74:13] number of cities in California to other
[74:15] cities across America. And except for
[74:17] Beverly Hills, which is an out outlier.
[74:19] >> small anyway.
[74:20] >> Well, but they have a lot of cops per
[74:21] population.
[74:22] >> to like Chicago and New York?
[74:24] >> So compared to those cities, we have
[74:26] fewer officers per capita. But we have
[74:28] across Californian cities, we have
[74:31] almost the same per capita.
[74:33] >> Compared to San Francisco, yeah.
[74:34] >> Yeah, like we're compared to San
[74:35] Francisco or I think San Diego. I can
[74:38] look this up. This was a RAND study. I'm
[74:40] sorry I don't have all of the
[74:41] information.
[74:41] >> you're right cuz I looked at it, too.
[74:42] >> It it it's interesting. Like California
[74:45] has fewer officers per capita than other
[74:48] >> California cities but our cities are are
[74:50] are relatively similar.
[74:52] >> Yeah, and I don't know what So what is
[74:53] the right number? The right number is
[74:55] the number that you need to respond to
[74:56] the calls for service that you're
[74:57] getting, right? So the question that I
[74:59] would have is how do we get to that
[75:01] answer? What are What are the number of
[75:03] calls that we're getting? What kinds of
[75:05] calls are we getting? What is the
[75:06] appropriate deployment for the kinds of
[75:08] calls that we're getting? That's not a
[75:10] study that the city of LA has done
[75:12] recently. Let's do that work. Let's
[75:15] answer those questions, right? This
[75:16] isn't What it What has I'm sorry, but
[75:18] this This has become just like an
[75:20] ideological test. It's like, you know,
[75:22] what What do you believe
[75:23] >> why I want to push back and ask you
[75:24] what's the difference between hiring
[75:26] more officers and hiring people to take
[75:28] the desk jobs and respond to the calls
[75:31] that don't require officers so that
[75:33] officers are available to do their work.
[75:34] Isn't that the same thing as hiring more
[75:36] officers?
[75:36] >> I I know so whatever it takes to have a
[75:38] call under 10 minutes, I think is
[75:40] reasonable to get someone out there.
[75:42] >> I want to have a system in Los Angeles
[75:44] where if you call 911 for help, that
[75:46] someone picks up the phone quickly and
[75:48] that the right person shows up for your
[75:50] call. And I will do whatever it takes to
[75:53] build that system out here in the city
[75:54] of Los Angeles.
[75:55] It's not an ideological response. It's
[75:58] literally how do we make sure that
[76:00] residents of Los Angeles are getting the
[76:01] help that they need.
[76:02] >> I think that's a really good uh
[76:04] data point because I What I love about
[76:06] your perspective is you want everything
[76:08] to back into some sort of metric that
[76:10] you can say, "Okay, you know, this used
[76:12] to be
[76:13] 45-minute average call time responding,
[76:16] you know, person on scene. I'm going to
[76:18] get that down to 32."
[76:19] >> Right.
[76:19] >> And you slowly kind of like try to chip
[76:22] away at that. I really enjoy that. What
[76:23] would be an I You said every single call
[76:26] gets responded to, you're going to have
[76:27] someone there. What would be a good
[76:29] amount of time that the citizens of Los
[76:31] Angeles could kind of fall back into?
[76:33] >> much nuance from I mean, that's just a
[76:36] >> Yeah, it's a tough question cuz
[76:37] depending on the call,
[76:38] right?
[76:38] >> yeah.
[76:38] >> Because well, yeah, you're going to have
[76:39] people my cat's stuck in a tree and
[76:40] stuff like that.
[76:41] >> And also where they live. I mean it it's
[76:43] an impossible question to give an a
[76:44] minute you know a minute eight eight
[76:46] minutes or 12 minutes and then is it a
[76:47] murder or
[76:48] >> Right.
[76:48] >> And there's and there's if it's an crime
[76:50] in commission, if there's violence
[76:52] happening, you need someone to show up
[76:54] immediately.
[76:55] >> Drones, just saying.
[76:56] >> Sure.
[76:57] >> Yeah.
[76:57] >> Uh but if you but if you have a
[76:59] situation where um you have a burglary
[77:03] that's already occurred, right? So let's
[77:05] say the burglar is gone, your home has
[77:07] been burglarized, what is the
[77:08] appropriate and minimum time that you
[77:10] think someone should take to respond?
[77:12] >> which is what it is uh
[77:14] >> Well, that's not yet. Three days is too
[77:15] long, hours is too long. What is the
[77:18] appropriate time? Let's try and meet
[77:19] that goal. I don't know off the top of
[77:21] my head what what that goal should be
[77:23] that we should set, but let's set a goal
[77:24] and let's meet it. You know, and let's
[77:26] say if you don't need PD armed officers
[77:28] showing up to take the report after a
[77:31] burglar has already left, but you need
[77:33] someone to show up there and collect
[77:34] evidence and to make sure that you're
[77:35] filing a police report appropriately,
[77:38] who can we send out? How do we make sure
[77:39] that that person goes out quickly? How
[77:41] do we actually make sure that system is
[77:42] responsive? These are questions that I
[77:43] want to ask about the city and how it
[77:46] functions that I think believe that I
[77:48] believe require real discussion and
[77:50] analysis. We don't have that and
[77:52] standards, and I want to set those
[77:53] standards.
[77:54] >> Guys, I don't want to interrupt you, but
[77:55] I know I know you're probably going to
[77:56] tap out at some point. You know, and I
[77:58] want to push on this
[77:59] >> know how you guys have the stamina.
[78:00] >> Oh, yeah.
[78:00] >> [laughter]
[78:00] >> Keep Keep going.
[78:01] >> I mean it's wild.
[78:02] >> It's just just chatting with friends.
[78:04] >> Yeah, it doesn't give me
[78:05] >> Let me Let me just muscle in
[78:06] >> I don't know, but I'm on I'm in the hot
[78:08] seat here. You just
[78:08] >> You can turn us in the hot seat.
[78:10] >> Ask us questions. Yeah, like
[78:11] >> Pin it around. I am so down. We can flip
[78:13] it around.
[78:14] >> [laughter]
[78:15] >> Yeah. But for for benevolent reasons,
[78:17] and that is because I think a lot of
[78:19] people dismiss you because of the DSA
[78:21] association. And by the way,
[78:23] in most elections, probably so would I.
[78:26] Um if I hadn't met you and I probably
[78:27] didn't and I didn't take the time to
[78:29] follow your policies and follow your and
[78:31] say I mean actually figure out what
[78:32] you're about, I probably would have
[78:34] dismissed you cuz I you You not everyone
[78:35] has the time.
[78:36] >> Right.
[78:37] >> Um so I want to press you on some the
[78:39] the DSA has some
[78:41] pretty extreme policies of which I
[78:43] highly doubt you you espouse and I'm not
[78:45] going to
[78:46] force you to like see, you know, it's
[78:48] not a litmus test here.
[78:48] >> Sure.
[78:49] >> But at the same time, I I do want to get
[78:51] out some of these policies which concern
[78:54] a lot of people, uh, moderates and
[78:55] conservatives moreover and that is
[78:59] you know, abolishing prisons and
[79:01] abolishing the Senate and abolishing the
[79:02] Constitution.
[79:03] >> Well, I don't want to do any of that.
[79:05] So, I just want to be very clear.
[79:07] >> tax? Wait, but I want to hold on. I want
[79:08] to finish on the DSA policies if you
[79:09] don't mind.
[79:10] >> Sure.
[79:10] >> Because one of them is also getting rid
[79:12] of expropriating property from private
[79:15] ownership which means basically the
[79:18] government owns housing and landlords
[79:21] and individuals like me and Graham can't
[79:23] own
[79:24] housing.
[79:26] >> I So, I believe in a public housing as
[79:29] well. Like public housing plays a role,
[79:31] right? There's no
[79:32] >> But does private
[79:33] >> Private also plays a role. Must play a
[79:36] role in I mean, does play a role and
[79:38] must play a role and
[79:39] >> And must continue to play a role.
[79:40] >> continue to play a role and my goal is
[79:41] to make it better. I mean, to make it a
[79:44] better environment for people to rent
[79:46] in, make it a better people environment
[79:47] for and I would say even make it a
[79:49] better environment for people to build
[79:50] and invest in, right?
[79:51] >> I just I just want to check out but not
[79:53] I just want to check out these policies
[79:54] so people can't say
[79:56] >> No, no.
[79:57] >> But there's a there were I apologize for
[79:59] not but there's a couple
[80:00] others that I'm trying to Oh, yeah. Uh,
[80:02] government owning large businesses. So,
[80:05] literally part of the policy is that the
[80:08] government would take
[80:09] over ownership of Walmart or Tesla or
[80:12] other large companies. I mean, do you
[80:13] believe in corporate enterprise and or
[80:16] that the government should own those?
[80:17] >> I mean, I do believe in corporate
[80:19] enterprise, um, and
[80:22] I would say the Trump administration has
[80:24] actually been doing more of this
[80:25] government ownership.
[80:26] >> Yeah, I don't disagree.
[80:27] >> You know.
[80:27] >> But I would just want to set these off
[80:29] so that people can't just say cuz
[80:31] I if you go on the DSA website it is a
[80:33] concerning
[80:34] >> That's
[80:35] >> but I don't think you're espousing even
[80:37] though you're
[80:38] endorsed by them I don't think you're
[80:40] espousing that
[80:40] >> I didn't they like refuse to endorse you
[80:42] after the housing thing or the mansion
[80:44] tax thing happened?
[80:46] >> No, they've endorsed me again, but yes,
[80:47] we have some disagreements, but I would
[80:49] just say look the DSA I think there's
[80:52] I don't want to I don't want to delve
[80:55] too deeply necessarily, but I will just
[80:56] say that I think there's a lot of robust
[80:58] conversations out there even within the
[81:01] DSA about housing policy and it's a big
[81:04] tent and and the coalition that I'm
[81:07] bringing into this race is the biggest
[81:08] possible tent you know, and it has to be
[81:10] because we're up against establishment
[81:12] politics and to me the definition of
[81:15] establishment politics in a in a in a
[81:18] city like this is one where you take the
[81:21] voters for granted where you're not
[81:23] working every single day to earn their
[81:25] trust and I have never been that kind of
[81:27] politician and that's what I want to I
[81:28] want to be a mayor that works every day
[81:31] to earn Angelinos trust
[81:32] >> And we shouldn't By the way, we should
[81:33] not be going to the ballot box holding
[81:35] our noses and casting a vote and I will
[81:37] say that every single person I've talked
[81:39] to that supports Karen Bass and I'm not
[81:41] taking a position, but I don't think
[81:43] I've met someone
[81:45] who actually is excited to vote for
[81:47] Karen Bass if anything they are going to
[81:49] hold their nose and check on Karen Bass
[81:52] in the ballot box and that is not how we
[81:54] should be voting for a mayor
[81:55] >> Yeah, but on financial policy for
[81:56] millionaires like Graham and
[81:58] billionaires like Jason would you
[82:00] introduce or do you support do you
[82:02] support some sort of a wealth tax and
[82:04] how would their taxes change?
[82:05] >> I think that wealthier people should pay
[82:08] more in taxes. I do believe that okay. I
[82:10] know this we may
[82:12] disagree
[82:13] >> I'm not philosophically against taxation
[82:14] >> But I will yes and I think
[82:17] you know, I think that people who are
[82:18] making more money should pay more
[82:20] because we are all contributing to a
[82:22] society and that society
[82:25] uh, more stable that society is the
[82:27] better off everyone is, right? And I
[82:29] believe that people who are wealthier
[82:30] should pay more. Hold on. Hold on. I
[82:32] don't have Look,
[82:33] >> We I think we all agree on that. I think
[82:35] >> here's the reality. Here's the reality
[82:36] right now.
[82:37] >> disagree.
[82:38] >> Here's Here's why Here's
[82:39] >> I'll tell you
[82:39] >> Oh, really?
[82:40] >> I'll tell you why.
[82:41] >> Here's why I really believe I keep
[82:43] harping on the issue of trust though,
[82:45] because
[82:46] the city of Los Angeles
[82:48] it does not have the trust of its
[82:50] residents right now. The city hall has
[82:51] lost the faith and trust of Angelenos.
[82:54] And so, even if I wanted to pass a tax
[82:56] right now, I don't think I could get it
[82:58] passed. In fact, I know that because in
[82:59] June, there were two taxes on the
[83:01] ballot. Um, a tourism tax, meaning
[83:05] residents weren't even going to pay it,
[83:06] tourists were going to pay it, and the
[83:08] residents of the city of Los Angeles
[83:10] said no to that tax increase, and they
[83:12] said no to a tax increase to fund street
[83:14] light repairs. So, the city of Los
[83:17] Angeles, if we want to raise taxes, we
[83:19] got to earn trust again. And I am here
[83:21] to earn your trust.
[83:22] >> Okay, so here's my back and here's my
[83:24] No, no, no, no.
[83:25] >> I would pay tax if I trusted it was
[83:26] going to that.
[83:27] >> Yeah, yeah, of course. Everything hinges
[83:29] on transparency.
[83:29] >> Yeah, but but that's why But that's why
[83:31] I'm saying no on higher taxes, because
[83:33] it's raising taxes and then it's just
[83:35] being squandered. It is just being
[83:36] wasted.
[83:38] >> Those are two separate arguments and
[83:39] >> Yeah, but why should we tax first before
[83:40] actually getting the spending under
[83:41] control?
[83:42] >> what I'm I just literally said the
[83:43] opposite, sir.
[83:45] You know, I'm saying let's build trust
[83:48] again, and then I'll come back to that.
[83:49] >> to say that rich people should pay more.
[83:51] >> Well, I I would say that, too, but I
[83:53] would also say
[83:55] >> Show results before we increase taxes.
[83:57] >> California's already you're paying more
[83:59] than 50%. So, like, when is it just
[84:01] purely just
[84:02] >> policy, Bobby. We're not dictating
[84:04] federal policy.
[84:05] >> And I'm really I'm just I'm what I'm
[84:06] here to say is that I not have a
[84:08] hypothetical argument. What I'm here to
[84:10] say is that the city of Los Angeles
[84:12] needs to deliver essential services and
[84:14] earn your trust again, and that's what I
[84:16] am running for mayor. I want to do that.
[84:18] I really believe in city hall. I think
[84:20] it can I want people to raise their
[84:22] expectations for Los Angeles and I want
[84:24] to work as hard as possible to meet
[84:25] them. That is my goal.
[84:26] >> So in all honesty,
[84:28] if I'm at the ballot box with the
[84:30] limited information that I have, I would
[84:32] vote for you. And the reason is the
[84:34] reason is I mean you and I probably
[84:35] disagree pretty aggressively on things.
[84:37] We do.
[84:38] >> Yeah.
[84:38] >> I deeply, deeply, deeply admire your
[84:41] willingness to come and sit down on a
[84:42] podcast and like I don't even know you
[84:45] you I don't I don't I don't think you
[84:46] asked for editing privileges or
[84:48] anything. You're like, yeah, I'm going
[84:49] to come, I'm going to sit down, like I'm
[84:51] going to have a conversation, I'm
[84:52] willing to have nuanced discussions and
[84:54] I I really admire that. Not just because
[84:56] it's really nice for us because we want
[84:57] to make episodes, but also because like
[84:59] it's great that you're you're willing
[85:01] and able to do that. A lot of people
[85:03] completely deny that and the only thing
[85:06] the only logical conclusion that I can
[85:07] have is that they're too ideological and
[85:09] they're not willing to actually back
[85:10] into their beliefs. They just want to
[85:12] say something, get people to support
[85:14] them and then leave.
[85:15] >> Yeah, so I appreciate you doing
[85:16] >> And in fairness as well, we did reach
[85:18] out to Karen Bass. We never heard back.
[85:20] So for the record, we tried, you
[85:22] responded back, you came on. I really
[85:25] appreciate that.
[85:26] >> And so
[85:26] >> And I appreciate you too and I I really
[85:28] I want to say that um
[85:31] I know that yeah, there's probably a lot
[85:33] that we have real disagreements about,
[85:35] but I hope that if I am elected mayor
[85:38] that we can have this conversation in
[85:39] two years and that you'll say yes, I
[85:42] have more trust and faith in the city of
[85:44] Los Angeles. That's my goal and that's
[85:45] and we're going to ring that bell.
[85:47] >> [laughter]
[85:48] >> And if I could ever be of service or
[85:51] just a sounding board for housing
[85:52] policy. Okay, yeah, for anything.
[85:53] Seriously, I I would love to be
[85:55] available at any point because I like I
[85:57] said, I grew up here and unfortunately
[85:59] I've had really bad experiences. So if
[86:00] there's anything I could provide from my
[86:02] perspective, whether or not it goes
[86:04] anywhere, I'm always open.
[86:05] >> Let's see what happens on November 3rd,
[86:07] but let's keep this conversation open.
[86:08] So I just want to say to everyone who's
[86:10] watching out there maybe with some
[86:12] skepticism,
[86:14] my my strongest ideology is delivering
[86:17] results for the residents of Los
[86:18] Angeles. And definitely go out and vote.
[86:22] Definitely go out and make your voices
[86:24] heard. And I hope that I have the chance
[86:26] to deliver for you.
[86:27] >> Thank you so much for coming on the I
[86:28] have to say I really appreciate it.
[86:29] >> Thank you guys.
[86:30] >> Thanks for watching. Until next time.
[86:32] >> Bodybuilding is the worst sport you
[86:34] could possibly do.
[86:36] >> [music]
[86:36] >> What do you think about fat shaming?
[86:38] >> I think fat shaming can absolutely work.
[86:40] >> Is it really bad that I don't want to be
[86:42] fat? That I don't want to be unhealthy?
[86:44] >> If someone's trying to ascend, give us
[86:47] the first five things they do today.
[86:49] >> Number one is
[86:51] >> Mr. Mike is delusional. He's convinced
[86:53] himself in order to cope that he's on
[86:55] low doses.
[86:56] >> What if Mike Israetel came to you and
[86:58] said, "Look, I don't like it when you
[86:59] make these videos on me?"
[87:00] >> Mike Israetel has literally said you can
[87:02] do anything you want, talk about me
[87:03] whenever you want.
[87:04] >> Just cuz I'm popular. If I fall off
[87:06] tomorrow, Greg will never make another
[87:08] video about me again.
[87:09] >> What muscles do you think women look for
[87:12] most in men?
[87:13] >> All these guys [music] doing hand
[87:15] workouts to try to impress. I'm like, "I
[87:16] don't know." Look, spend less time on
[87:17] that and get a job and have some money.
[87:19] Girls care about your wallet.
[87:21] >> How does a 16-year-old look like this?
[87:22] >> A lot of steroids and a lot of working
[87:25] out.
[87:25] >> Like 16-year-olds are doing steroids now
[87:27] and bragging about it. It's at at this
[87:29] point it's it's insane.
[87:30] >> Who is the worst fitness influencer
[87:32] right now?
[87:35] >> [music]
[87:42] [music]