Commercial
L.A. Mayor Karen Bass Talks Housing Development and Downtown Revitalization
As Los Angeles approaches its primary election, housing and affordability are at the forefront, with voters and real estate professionals concerned about the city's capacity to increase home construction and enhance downtown living.
Los Angeles Election: Housing and Affordability Take Center Stage
As Los Angeles heads into its primary elections, the intense focus on housing and affordability is impossible to overlook. Voters and industry stakeholders are increasingly anxious about the city’s ability to not only construct enough homes but also to address homelessness effectively and stimulate development.
Mayor Karen Bass has staunchly defended her administration's efforts to accelerate the creation of affordable housing. She points to reforms she's introduced in the permitting process—especially after the destructive Palisades fire—as key steps toward revitalizing downtown Los Angeles through increased safety, investment, and large-scale events.
In a discussion at a Connect CRE conference on May 28 with Lew Horne, who heads CBRE’s Southern California advisory services, she tackled various pressing topics: the complexities of bureaucracy, homelessness, public safety, and how to make Los Angeles more appealing for both residents and investors.
The Challenge of Change
Bass recognizes the gravity of her role, stating, “Serving in my hometown has been an honor of a lifetime.” She expressed her deep concerns about homelessness back when she was in Congress, which is what motivated her return to City Hall.
One of her notable achievements is the decline in street homelessness over the last couple of years—a first for the city. Despite some crime increases, overall crime rates, particularly violent offenses, have dropped. She emphasizes that affordability underpins these issues, arguing that reframing the development system is essential.
The mayor highlighted the expedited processing of 42,000 affordable housing units, with 6,000 currently under construction. Adaptive reuse, once limited to specific neighborhoods, is now a citywide initiative that allows office buildings to be converted into residential spaces—a move targeted at revitalizing downtown and dispelling prior doubts about such transitions.
Confronting Bureaucracy and Expediting Housing**
Bass’s approach to local governance has been disruptive, aiming to transform a culture perceived as hindered by slow processes. At her direction, significant leadership changes occurred at the general manager level to speed up operations at City Hall, which she described as being closed off when she took office.
Highlighting an innovative aspect of her administration's efforts, she shared the Community Housing Incentive Program (CHIP), which aims to rezone sections of the city to meet California’s housing goals. Celebrating the one-year anniversary of this initiative, Bass noted that 30,000 units are currently fast-tracked—significant progress given that bureaucratic permit processes once stretched from six months to a year and now average just 67 days.
However, challenges persist. Financial obstacles related to banking and insurance continue to delay rebuilding in the Palisades, where many homeowners are hesitant to proceed without assurance of proper financing or insurance coverage. Bass’s advocacy for legislative change in these sectors will be pivotal in moving these projects forward.
Addressing Homelessness with Action and Accountability
Bass did not shy away from discussing her administration’s response to homelessness, a cornerstone of her campaign. She initiated the “Inside Safe” program, which lets outreach teams not just relocate encampments but provide permanent housing solutions, moving away from temporary fixes that merely shift people without addressing the root issue.
Highlighting that past efforts led to the proliferation of street homelessness, she criticized the common “housing first” approach, advocating instead for immediate action. Her administration's focus on humane and practical solutions is geared toward long-term stabilization, and she sees sustainable housing as a key factor in ensuring the health of the populace and the urban environment.
As Bass looks to the future of Los Angeles amid complex challenges, her optimism shines through. She envisions a city that is safe, affordable, and inclusive—a place where walking the streets is a positive experience and the diversity of neighborhoods is celebrated.
If you’re engaged in the real estate sector, these insights from Bass’s conversation seem particularly relevant. The unfolding of Los Angeles’s housing policies might greatly shape investment and development opportunities, and the trajectory they take over the next several years will be crucial in determining the city's livability and market viability.
