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Criminal Referrals Against Trump Expected from Jan. 6 Committee; More Than 5 Million People Remain Under Winter Weather Alerts; CDC Finds Flu Cases Still High Ahead of Big Holiday Gatherings; Californians Seek Affordable Housing Alternatives. Aired 6-7a ET

Aired December 17, 2022 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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[06:00:28]

AMARA WALKER, CNN ANCHOR: Good morning, everyone. And welcome to CNN this morning. I'm Amara Walker.

BORIS SANCHEZ, CNN ANCHOR: And I'm Boris Sanchez. The January 6 Committee is expected to announce it will refer multiple criminal charges against Donald Trump. What that could mean for the former president and how the Department of Justice could respond?

WALKER: And thousands are without power this morning across parts of the Northeast as a massive winter storm pummels the region where we could see up to two feet of snow and when the next blast of Frigidaire moves in?

SANCHEZ: And border towns are bracing for a surge as a Trump era policy is expected to end next week. You're going to hear both from those who journeyed to the border and officials trying to contain this crisis.

WALKER: Plus, call it, the IKEA of home manufacturing, how one company is building homes in just two weeks and how it's helping tackle America's housing crisis?

SANCHEZ: We made it to the weekend Saturday, December 17, thank you so much for waking up with us. Good morning, Amara.

WALKER: Just eight days until Christmas. I'm definitely feeling it, excited. You feeling good this morning?

SANCHEZ: Yeah, we're getting there. We're getting there. Still some last-minute items --

WALKER: We're waking up together.

SANCHEZ: Yeah, some last-minute items to check off the list. It's crunch time right now as far as gift giving goes.

WALKER: Procrastinator. SANCHEZ: Well, we start this morning with what could be an unparalleled condemnation of a former president of the United States. The Committee investigating the January 6 attack on the Capitol is expected to refer criminal charges, multiple criminal charges against Donald Trump to the Justice Department.

WALKER: Now, the House Select Committee will make its final recommendations on Monday during its final hearing. Its final report providing justification for the charges is expected a short time later. The Committee may refer at least three criminal charges against Trump. In a statement, a spokesman for the former president criticized the Committee as a kangaroo court and called the hearings a stain on this country's history.

SANCHEZ: CNN's Sara Murray has a preview of what we can see in Monday's hearings.

(BEGIN VIDEOTAPE)

DONALD TRUMP, FORMER PRESIDENT OF THE UNITED STATES: We will never give up. We will never concede, it doesn't happen.

SARA MURRAY, CNN POLITICAL CORRESPONDENT: The January 6 Committee considering asking the Justice Department to pursue criminal charges against former President Donald Trump.

TRUMP: And we fight, we fight like hell.

MURRAY: A source telling CNN those charges include obstruction of an official proceeding and conspiracy to defraud the federal government and there could be more. Members huddling behind closed doors to put the finishing touches on the final report they plan to unveil next week.

REP. ZOE LOFGREN (D-CA): I've spent countless hours along with the other committee members going through the report and the appendixes, looking at the footnotes, editing.

MURRAY: Chairman Bennie Thompson saying the Committee will lay out its top line findings in Monday's public meeting, but plans to share an executive summary of the panel's sprawling investigation. And perhaps even the bulk of the report if it's finished in time.

REP. BENNIE THOMPSON (D-MS): We have made decisions that criminal referrals will happen.

MURRAY: The Committee also planning to reveal who they think should be held accountable, with referrals for possible state bar discipline, referrals for possible campaign finance violation, referrals to the House Ethics Committee and referrals to the Department of Justice for possible criminal prosecution.

THOMPSON: We have left no doubt, none that Donald Trump led an effort to up in American democracy that directly resulted in the violence of January 6.

MURRAY: Lawmakers especially focused in their hearings and public appearances on Trump's potential culpability.

REP. ADAM KINZINGER (R-IL): I think he's guilty of a crime. He knew what he did. We've made that clear. He knew what was happening prior to January 6.

MURRAY: While the referrals will lay a marker for posterity.

KINZINGER: Where I think this work is going to actually echo the loudest though, is not even necessarily tomorrow, not even if the Justice Department does, it's going to echo through the history book.

MURRAY: Trump is already facing scrutiny from the Justice Department and its probe into the attack on the U.S. Capitol and efforts to overturn the 2020 election. Some of his top allies in the scheme lawyers Rudy Giuliani, John Eastman and former DOJ official Jeffrey Clark, all face investigations from state bars.

UNIDENTIFIED FEMALE: Hey, Mr. Clark.

JEFFREY CLARK, FORMER ASSISTANT ATTORNEY GENERAL: Yeah?

MURRAY: Clark's home also surged.

CLARK: Can I put pants on first?

UNIDENTIFIED MALE: Sir, you got to clear the house.

[06:05:00]

MURRAY: As he faces DOJ scrutiny as well, an unsealed court filing this week revealing federal investigators have accessed emails between Clark and Representative Scott Perry, who refuse to talk to the January 6 Committee.

(On camera): Now, when it comes to the Committee, in addition to referring to DOJ that they pursue charges of obstruction of an official proceeding and conspiracy to defraud the federal government, we're also learning they're expected to refer to DOJ, a charge of insurrection.

Now, these are all mostly symbolic. The Justice Department does not take its cues from Congress, of course, but lawmakers on this Committee have felt like it's important for the historical record and to sum up their work. They say they have found evidence of criminal activity and they feel like it's important to put that forward to the Department of Justice. Sara Murray, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: Our thanks to Sara for breaking that down for us. Let's discuss further now with former federal prosecutor Michael Zeldin. He's also served as a Special Assistant to Robert Mueller at the Justice Department.

Michael, good morning. Great to see you, as always. Let's break down these three criminal referrals, the Committee is expected to announce against Trump. First, insurrection, obstruction of an official proceeding and conspiracy to defraud the federal government. What do you make of those?

MICHAEL ZELDIN, FORMER FEDERAL PROSECUTOR: Well, they all mirror the evidence that the Committee has presented. Insurrection really is in this case, incitement. That is the allegation that President Trump or whoever else they refer, incited this riot, they did it either at the Ellipse when they made those speeches, or in Trump's case, I think, when he texts, the crowd, essentially that says, Pence didn't do what we want him to do, let's go get Pence. That's sort of like the lowering of the flag and the troops enter into the Capitol.

The conspiracy to defraud, and the conspiracy to obstruct or very similar charges, different statutes, but the essence of them, Boris, is that there was an agreement among people to prevent the designation of Biden as the duly elected president. So, they did it by defrauding the government. And they did it by interfering with the orderly transition of power on the date of the insurrection. So those are the three most likely charges.

There also could be contempt charges for those who refuse to cooperate with the Committee, such as Donald Trump and other lawmakers.

SANCHEZ: Well, you mentioned that contempt charge and it's interesting because A source tells CNN there could be additional charges proposed for Donald Trump, aside from a potential contempt charge which you mentioned, which others could you see?

ZELDIN: Well, there are a lot of people who talk about the seditious conspiracy. I haven't yet seen evidence that takes us to that point. But that's the real big, you know, 800-pound gorilla sitting out there, will they refer him in the same way that they referred the Oath Keepers for that sedition. That would preclude him if convicted of running for office in the future. But I think that it's a stretch to go there. But, you know, the Committee has its own view, and they've seen the evidence in greater detail than any of us. And so that's the thing that I'm looking to see whether they're going to push the lever that far.

SANCHEZ: I was also curious about this, the Chairman Bennie Thompson told CNN that in addition to those criminal referrals, there could be, "other categories of referrals the Committee makes," what could that entail?

ZELDIN: As to lawyers, it could be to the bar exam -- the bar ethics people, we see that Rudy Giuliani has had his license suspended in New York. And it's pending whether or not he gets it removed altogether here in the District of Columbia, as to lawmakers who seem to have been conspiring in some small way with the President to prevent this from going forward. They may be referred to the Ethics Committee on the hill, as well, they may be cited for contempt. So, there are opportunities here for not just the DOJ to look into this. But for the ethics people because whether or not this was a criminal offense, it was surely an ethical breach and a moral breach. And there are opportunities for these types of behaviors to be sanctioned by licensing organizations. SANCHEZ: As Sara Murray mentioned a moment ago, these criminal referrals are largely symbolic, but what kind of wait, can they have on the next steps from the Department of Justice?

ZELDIN: Well, I think that justify will take these referrals if they come seriously, because they have been gathering evidence January 6 Committee that is, has been gathering evidence for a very long time. They have more evidence gathered than DOJ as far as we know, at this point. And so, if the prosecutors on the January 6 Committee and there are many of them, who sit as members or a staff, say to the DOJ, we've looked at this evidence and we think if it meets the standard of convictable crime of sustainable on appeal then I think DOJ takes a harder look at it than if there was no referral. So, I think it's meaningful to the DOJ when it comes. It's not dispositive, but I think it will be meaningful.

[06:10:17]

SANCHEZ: We will be watching to see what the DOJ does. Of course, and we'll be watching on Monday as well. Michael Zeldin, we appreciate your expertise. Thanks so much.

ZELDIN: Thank you, Boris.

SANCHEZ: And a quick reminder for you, we're going to have special live coverage of Monday's January 6 Committee hearing. It begins at noon Eastern. You will not want to miss it right here on CNN.

WALKER: All right, more than 5 million people remain under winter weather alerts this morning. The nor'easter brought several feet of snow to parts of New England and rain to coastal areas. And this morning, 1000s of people across the Northeast are without power. CNN Meteorologist, Allison Chinchar is in the Weather Center with more. Do give us the latest on this winter storm. Hi, Allison.

ALLISON CHINCHAR, CNN METEOROLOGIST: Yeah, good morning. It's the storm that just doesn't want to leave. It's still lingering across areas of the Northeast. So, you still have some pretty good snowfall coming down. Rain, yes, right there along the coast. But even for cities like Boston and Portland, you're starting to see that transition from rain back over into snow. The heaviest snowfall obviously is going to be once you move a little bit more interior.

Look at some of the total so far, you're talking double digits in a lot of places over a foot for areas of New York, New Hampshire, Massachusetts and two feet, when you talk about portions of Vermont. We're also getting some snow in the Midwest, most of that is going to be the lake effect enhancement. But still, even those areas could still look at potentially several more inches on top of what they've already had.

Most widespread areas, you're talking about four to six inches of additional snowfall, the caveat to that is going to be areas of upstate New York and portions of Pennsylvania where you're getting that lake effect enhancement there. You could end up picking up at least an additional foot of snow on top of what's already fallen. The thing is with a lot of this snow, it's not really going to go anywhere soon. Because these temperatures are going to start to drop back. We start to see that take shape across the Midwest first. But then that cold air begins to spread its way across the Great Lakes and into the Northeast but also elsewhere. Take a look at this, by the end of next week, you're going to be looking at some areas in the eastern half of the country. Sorry, Boris that are looking at the temperatures 15 to 20 degrees below normal.

WALKER: He can't handle it. He's not showing up to work. I'll tell you that.

SANCHEZ: Yeah, shut down if it gets below 50 degrees. So, I appreciate the warning, Allison, thank you so much.

WALKER: Allison, thank you. Well, the DOW plummeted again ending the week down 4% so far in December after solid gains in the previous two months.

SANCHEZ: Yeah, investors are now fretting about the possibility of a recession just one week ahead of the holidays. CNN's Matt Egan has more.

MATT EGAN, CNN BUSINESS REPORTER: Good morning, Boris and Amara, recession fears are back on Wall Street in a big way. U.S. markets finished lower on Friday ending an ugly week for stocks. Now, this selloff really got started almost exactly at 2 p.m. Eastern on Wednesday. That's when the Federal Reserve Announces interest rate decision. The Fed statement and projections raise fears of more Fed rate hikes ahead. And remember, the more the Fed does, the greater the risk they do too much, and they cause a recession.

Jerome Powell's press conference that only further reinforced the same concerns. But this self is not just about the Fed. Thursday's weaker than expected reports on retail sales and manufacturing suggested real cracks are already forming in this economy. So, if you add a tough talking Fed to weakening economic numbers, you get rising recession fears.

I would note that Powell and the Fed are probably just fine with this sell-off. I mean their inflation fighting campaign, it requires tighter financial conditions. They know the more hawkish they sound, the less work they have to do. They don't want the market to boom. In some ways, this market is in a loss, loss situation right now. Because good economic news is being treated as bad news by investors because it means a tougher Fed. Bad economic news is bad for investors and everyone because it raises the risk of a recession. Still some investors I talked to they argue this sell off is getting out of hand. Veteran Market Strategy Art Hogan, he told me that it's, "too soon to be sounding the recession alarm bells." And this drop is likely overdone. What's clear is that the market is pricing in the greater risk of a recession. That was less clear is if the market is right. Boris and Amara?

SANCHEZ: Matt Egan, thank you so much. As the recession fears increase, there's actually good news at the pump. Gas prices hitting another milestone with a national average sinking to a 15-month low. Today, a gallon of regular gas is $3.16 a gallon, 14 fewer cents than a week ago and according to AAA 15 cents less than a year ago.

[06:15:11]

WALKER: Yeah, and U.S. oil prices also dropped another 3% to $73.58 a barrel Friday, a sign that gas prices could continue to go down. It's encouraging news for consumers after a year of high rent, groceries and of course other essentials.

So, a Trump era border policy is set to expire next week and towns along the U.S.-Mexican border are preparing for an influx of migrants. The concerns from officials across parts of Texas is coming up.

SANCHEZ: Plus, as COVID cases rise, officials are urging people to protect themselves as we close in on Christmas and New Year's Eve. The concerns amid this triple threat of respiratory viruses we're seeing across the country.

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[06:20:03]

SANCHEZ: A federal appeals court has rejected a bid by several Republican led states to continue Title 42. That's the Trump era policy which cited COVID-19 as a reason for the U.S. to expel migrants immediately at the southern border.

WALKER: And the last, the Supreme Court intervenes, the Biden administration is bracing for a surge in migrant crossings when Title 42 ends on Wednesday. CNN's Ed Lavandera is in El Paso, Texas where city officials are overwhelmed as 1000s of migrants are already arriving every day.

(BEGIN VIDEO CLIP)

ED LAVANDERA, CNN NATIONAL CORRESPONDENT: It's 39 degrees and getting colder. This is Roberto Cordoba's first night sleeping on the El Paso streets. He says he's never experienced anything close to homelessness. He left Cuba last month and is hoping to get to Miami soon.

(On camera): He says this is the first time in his life he's ever had to spend the night on the street and he feels completely lost.

(Voice-over): A thin pair of New York giants socks and unlaced shoes won't be enough to get through the frigid night.

(On camera): Everything that he's wearing now, the jackets in the heavy clothing donated people who have dropped it off here. Roberto hopes there's something else to keep him warm. In the back of Sandragrace Martinez's car for days, she's handed out donated goods.

SANDRAGRACE MARTINEZ, VOLUNTEER: Their survival mode, it's fight or flight for them. LAVANDERA (voice-over): The long lines of migrants from what is Mexico waiting to get escorted into El Paso by border patrol agents has significantly dwindled, a sign that perhaps this latest migration surge has slowed down for now. But that could change next week. With the Title 42 Public Health rule set to expire. That order allows for the swift expulsion of migrants at the border as more migrants arrive in El Paso officials plan to bring in more buses to move migrants to their destinations in the U.S. faster, hoping to prevent a backlog of people on the streets.

MARIO D'AGOSTINO, DEPUTY CITY MANAGER, EL PASO, TX: And so, with that, that might bring in transportation in forms of buses to get them to that transportation hub, whether it's Dallas or Denver or Phoenix or whatever that next large airport or bus terminal is, it's to move them on to those locations.

LAVANDERA: El Paso Emergency Management Outreach teams are helping migrants find shelter space at night. But Albert Robles and his wife have been sleeping on the street buried under blankets since Monday night. Their bus ticket to Connecticut isn't good until this weekend.

(On camera): He said the first night that he was sleeping on the street, it was drizzly and cold, it was almost like a fatal feeling. But he thought, you know, he's been dreaming of this moment for so long. But there was no way he was going to turn back.

City and county public officials have been meeting with the federal government, including customs and border protection officials. They're all in the process of planning and preparing for what's to come next week if and when Title 42 is lifted on Wednesday. Ed Lavandera, CNN, El Paso, Texas.

(END VIDEOTAPE)

WALKER: All right, really important reporting there from our Ed Lavandera.

All right here to discuss this further with me now is CNN Political Commentator, Errol Louis. Good morning to you, Errol. I mean, really important reporting, as I said, from Ed. I mean, officials on the border, as you saw in his piece, they're sounding the alarm of an even bigger surge that they're expecting come perhaps after Wednesday. Republicans are joining and that of course, and as are some Democrats, including the California Governor Gavin Newsom, who said that his state's capacity to cope could be overwhelmed. So clearly we have a crisis at the border. Where does the Biden administration stand on all this? And because I feel like there's been several mixed messages sent on that?

ERROL LOUIS, CNN POLITICAL COMMENTATOR: Good morning, Amara. The Biden administration is continuing an unfortunate tradition of presidents really dealing piecemeal with what is a problem that cries out for a comprehensive solution. So, a little money is being given here and there to cities like El Paso that are at risk of being overwhelmed, not enough to actually solve the problem. But to sort of help them ease some of the immediate financial pain. The pain is then also being spread in the form of migrants being placed on buses and sent elsewhere in the country.

But the reality is, the influx has not stopped. In fact, we're seeing really high numbers, and we're also seeing people coming from places like Venezuela. So, you know, until the diplomatic problems are dealt with, until the underlying economic problems of the region are dealt with, there's going to be an attraction that's going to bring lots and lots of people to the border. And, of course, on our side of the border, the politics are so broken. There's no comprehensive way to help people find a path to citizenship.

WALKER: Right and it doesn't help that now the Republicans have control of the House and so when it comes to comprehensive immigration reform.

[06:25:07]

I don't think anyone's holding their breath that that's going to happen in the next couple of years. But look during the midterms, you know, the Republicans focused their platform on immigration, of course, you know, pointing to the influx of the migrants and criticizing the Democrats for what we're seeing. But are the Democrats making a mistake, as you say, by not talking enough about the border crisis as we approach 2024, and as you say, there is no comprehensive plan for the Democrats and in the way they want to approach this issue?

LOUIS: Well, look, given the victories that the Democrats had in this last midterm election, it seems like silence actually sort of works politically speaking. So, by not talking about it, they managed not to inflame the kind of sentiment that would have led to more serious losses, especially when it comes to some of the Senate races. Remember, there were some really close ones in Arizona and in Nevada, those are border states. And it didn't it didn't play out that way.

On the other hand, at some point the White House is going to have to answer for this. And as Joe Biden prepares for a reelection bid, he's going to have to explain to the people what it is he did. Why did we reach record numbers of interceptions at the border? Why wasn't there a comprehensive plan? What are the federalism implications here? Why dole out small amounts of money to individual cities, when what we need is a much bigger, more comprehensive approach? That I think is where the other shoe is going to drop? And Democrats will have a hard time explaining that.

WALKER: Yeah, it's really seems like just a few band aids here and they're on a flood of problems. Speaking of re-election, so you know, we've heard from Nancy Pelosi and Chuck Schumer, speaking with our Jamie Gangel that they believe Biden is doing an excellent job that their words and that he should run again. Let's listen to a part of that interview.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA): I think President Biden has done an excellent job as President of the United States. I hope that he does seek reelection. He's been a great president. SEN. CHUCK SCHUMER (D-NY): What he's accomplished, a lot of people --

PELOSI: Do you think he should run again?

SCHUMER: Yeah, he's done an excellent, excellent job. And if he runs I'm going to support him all the way.

(END VIDEO CLIP)

WALKER: OK, of course, that's expected, at least from the most powerful, I guess, leaders in the Democratic Party. But when you look at the polls, Errol, especially some recent CNN polling shows that the majority of Republicans, leaning Republicans, along with the majority of Democrats and leaning Democrats, they do not want to see a Trump- Biden rematch in 2024. So, what's the alternative?

LOUIS: Well, that's the question, isn't it? Interestingly enough, there are comparable numbers, just as you say about 60% of Republicans don't want to see Trump run again. And a comparable percentage of Democrats don't want to see Biden run again.

On the other hand, when asked among the Democrats, who would you prefer as an alternative 72%, could not name anybody. So, you know, as Biden himself likes to say, Don't compare me to the almighty, comparing me to the alternative. The reality is he's had a successful enough track record that there are no Democrats out there on the horizon of national stature, who have even whispered the idea of running against him. I mean, well, what are you going to complain about that he got a $1.2 trillion infrastructure bill passed, you're going to complain that he named the first black woman to the U.S. Supreme Court, you got to complain that he's been fighting this war, or supporting the war to defend Ukraine. I mean, there aren't a lot of really, from the Democratic side. At least there's not a lot of chinks in the armor there. And I think he's going to be fine.

WALKER: Yeah. Look, it's easy to say what you don't want, right, but sometimes more difficult to pinpoint exactly what you do want. Errol Louis, appreciate you joining us. I know you had a late-night last night, so thank you. I appreciate it.

LOUIS: Sure.

SANCHEZ: Still ahead, a triple threat, the flu, RSV and COVID-19 putting a strain on hospitals across the country. The warning from health officials ahead of the holiday is coming up.

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[06:30:00]

SANCHEZ: Just days before big holiday gatherings, federal health officials continue to warn about a triple threat, the flu, COVID and RSV. The flu is rapidly spreading with 15 million cases reported so far this season. And the CDC's latest weekly report also finds the virus has caused 150,000 hospitalizations and 9,300 deaths. WALKER: Yes, I feel like almost every child at least that I know is

ill. COVID is also showing signs of a Winter comeback. Right now, one in ten people live in a high transmission area, that's higher than last weekend, double the week before. CNN's Dr. Tara Narula breaks down the numbers.

TARA NARULA, CNN MEDICAL CORRESPONDENT: Boris, Amara, as we head towards the holidays and people are gearing up to see family, officials are emphasizing the importance of protective measures, testing and treatment for COVID. COVID hospitalizations have been on the rise since early November and specifically for seniors where hospitalization rates are four times higher than for any other age group.

About 14 percent of the U.S. population is still in an area that meets the CDC's criteria for high COVID-19 community level. Which is up from less than 5 percent last week. Some of those areas include New York City, Los Angeles County and Phoenix's Maricopa County. For the first week of December, the U.S. had the most COVID deaths in months, which was around 3,000 for that week.

Dr. Ashish Jha; the White House COVID Response Coordinator said this week, we have the tools, we have the infrastructure, and we have the know-how to manage this moment. One of those tools is testing.

[06:35:00]

The government now saying they are reopening covidtest.gov for a limited time, so more Americans can have access to free tests.

Each household can order up to four-at-home tests that will ship as early as next week. The White House is also emphasizing that people who test positive for COVID should be evaluated for treatment with antiviral like paxlovid, especially those 50 and older and anyone with chronic conditions. Only about 14 percent of eligible Americans have gotten an updated COVID-19 booster, so it's important to remind Americans about the booster so they can begin generating antibodies just in time for Christmas and new year's. Boris, Amara.

WALKER: That is a great reminder to get the COVID booster, Dr. Tara Narula, thank you. And coming up, the frustrating search for affordable housing. Families priced out due to a lack of inventory, inflation and overregulation. We're going to take you to a factory that's finding innovative ways to address the problem.

SANCHEZ: And some say America has a drinking problem that's hitting women especially hard. In an all new, "THIS IS LIFE", Lisa Ling explores how for some people, the pandemic pushed them from casual drinking into the disease of addiction. "THIS IS LIFE" with Lisa Ling tomorrow night at 9:00 right here on CNN.

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[06:40:00]

WALKER: Affordable housing is becoming harder and harder to find. The lack of inventory combined with inflation and regulations on how land is used, means families are being priced out.

SANCHEZ: But as they say, necessity is the mother of invention. Our own David Culver has been touring one factory where innovation is making a huge difference.

(BEGIN VIDEOTAPE)

LARRY PACE, COO & CO-FOUNDER, FACTORY OS: So this is where the floors of the volumes(ph) themselves get built.

DAVID CULVER, CNN CORRESPONDENT (voice-over): Keeping up with Larry Pace --

PACE: Don't touch it --

CULVER: Is not easy.

PACE: Excuse me, fellas --

CULVER: He moves through the floor of factory OS --

PACE: What are you all doing?

CULVER: With a sense of urgency.

PACE: All right, come on.

CULVER: Located just outside San Francisco, this space was first designed to build U.S. Navy submarines.

PACE: This place is built for World War II.

CULVER: Eight decades later, it's now transformed to fight a worsening crisis on the American home front.

PACE: This is a war we're in. And we're in a war to combat the affordability in the housing crisis.

CULVER: Factory OS puts home building onto an assembly line and out the door within 2 weeks. These modulares when combined, create entire apartment buildings. Think sophisticated legos. Production starts with a high-tech expedited design process. You're looking at the plans for beacon landing, an 89-unit affordable housing complex to be built just south of downtown L.A. Insulation and drywall, flooring and even fixtures all prefabricated right here in the factory.

(on camera): I mean, does it all work?

PACE: I would like to think so.

MATTHEW JOHNSON, EMPLOYEE, FACTORY OS: So look down this line and see what we're doing for the community is mind-blowing.

CULVER (voice-over): The need also overwhelming. In southern California, look past the glamour of Los Angeles' Hollywood Hills. The tents speak to desperation. According to 2019 figures, the state needed an estimated million more homes just to meet housing demand. Nationally, the home shortage jumped to roughly 3.8 million. That's more than double the number from a decade ago.

(on camera): But it's more than just boosting housing inventory. Inflation, zoning and inequalities also contributing factors as to why people just can't buy homes.

(voice-over): To purchase a house in more than 75 percent of the nation's most populous cities, an average family spends 30 percent of their income in cities like Miami, New York or L.A., it surges to more than 80 percent of an average family's income.

It's forced folks to seek other options, from moving into converted garages in smaller units on someone else's property, to expanding a civil rights-era approach that helps promote home ownership, particularly among minority groups.

IXCHEL HERNANDEZ, COMMUNITY LAND TRUST MEMBER: It shouldn't have to be that way where you're going to, you know, have to move so far out of, you know, L.A. to be able to have a home.

CULVER: Ixchel Hernandez's family moved here when she was about 4. At one point, they had six people crammed into their one bedroom apartment. "Thank God we never fell short on the rent", her dad says. But as renters for than 20 years, they constantly worried about a new landlord wanting to sell the property or raise rent.

UNIDENTIFIED FEMALE: OK --

CULVER: That is until this year when the Hernandez's and their neighbors joined a community land trust or CLT as they're known. A CLT is essentially a nonprofit that buys the land on which a building sits, allowing the community's residents to collectively manage it. Some residents eventually form a co-op and take ownership of their buildings, paying rent for the land.

HERNANDEZ: It may not seem like a lot to a lot of folks that have money or come from money. It's just -- you know, we are just as much trying to build that generational wealth.

CULVER: Today, there are at least five community land trusts here in Los Angeles, with more than 200 nationwide and counting. "What's important is that we're now owners", her mom says. It was not easy, her dad reminds them.

HERNANDEZ: No --

CULVER: About an hour's drive south from the Hernandez's home, we watched as the modular units arrived from the bay area, hoisted from a truck and placed onto a cement foundation block by block.

[06:45:00]

That beacon landing design we showed you earlier is quickly coming to life. Affordable housing, coming Summer 2023. It's not only the non- profits trying to help, Factory OS also aiming to ease the housing burden and commute time for its own employees.

JOHNSON: Just could be able to like, OK, I'm going to wake up, I'm going to take a walk down the street and come to work. You know, I mean, that's awesome.

CULVER: The company planning to convert this vacant lot nearby into employer-assisted housing. But to successfully fight the dire housing crisis nationally, Larry believes it will take corporations and government mobilizing now.

PACE: We all need to work on it together, and we can reverse this tide.

CULVER (on camera): The war is not lost.

PACE: The war is absolutely not lost.

(END VIDEOTAPE)

SANCHEZ: A terrific report from CNN's David Culver there. Still ahead, like father, like son. Tiger Woods and his 13-year-old son Charlie both pushing through pain to play together for this week's PNC Championship. Why Tiger says the pain is worth it, next.

(COMMERCIAL BREAK)

[06:50:00]

SANCHEZ: A bill that President Biden is set to sign may prevent a star football player from realizing his dreams.

WALKER: Andy Scholes has this morning's "BLEACHER REPORT". Good morning, Andy.

ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Yes, good morning, guys. So army linebacker Andre Carter II is projected to be a first-round pick. But in the National Defense Authorization Act, which passed the Senate on Thursday, and is headed to President Biden's desk. There's language that states that a cadet or a midshipman will no longer be allowed to play professional sports until after they have completed their service obligation.

Now, since 2019, athletes at military academies have had the ability to apply for a waiver to delay their active service requirement and immediately pursue professional sports opportunities. But if that is revoked, that means players for army, like Carter, are going to have to wait until after their service, which is five years of active duty in three years in the individual ready reserve.

Now, Mike Gallagher, Republican Congressman from Wisconsin who introduced the amendment told "ESPN", they are working on a legislative fix to grandfather in players who went to play for service academies with the understanding that they could get a waiver to go pro. All right, in NBA last night, bad news for the Lakers' Anthony Davis. He sat out the second half against the Nuggets after a foot injury.

He's set to undergo more tests today. Good news though for the Lakers, is LeBron led them to victory, check him out here, going coast-to- coast for the slam. LeBron had 30 points to become the oldest player at 38 since Michael Jordan to have three-straight 30-point games.

Lakers won that one 126-108. Elsewhere, Brooklyn Nets remain red hot. They were tied with the Raptors with under 4 seconds to go. They're going to get the ball in to Kyrie Irving, and Kyrie is going to make a fancy move here, he hit the step-back three at the buzzer. You remember Kyrie hit a three to win the NBA finals. But that wasn't at the buzzer, this is actually his first-ever buzzer beater of his career, Nets win 119-116.

That's their fifth win in a row. Right, Tiger Woods and his son, Charlie, meanwhile, they're back on the course together for the PNC Championship which will start later today. And both are actually limping, Charlie rolled his ankle and was hobbled along during -- was hobbling along during yesterday's pro-am, while Tiger is still dealing with his recovery.

The 15-time major champ, though, says this weekend's 36-hole tournament is not easy for him, but it's definitely worth it.

(BEGIN VIDEO CLIP)

TIGER WOODS, GOLFER: I think being there with and alongside my son is far more important and get to have a chance to have this experience with him is far better than my foot being a little creaky.

(END VIDEO CLIP)

SCHOLES: All right, and finally, it's been a busy couple of days for Suns' star Chris Paul after Thursday night's win over the Clippers in L.A., he flew across the country to his hometown in North Carolina for his college graduation ceremony yesterday morning. The 37-year-old received his bachelor's degree in mass communications from Winston- Salem State University.

He also gave his fellow graduates a gift to mark their achievement. CP3 setting up accounts with an online banking platform for everyone worth $2,500 each.

WALKER: Wow --

SCHOLES: Yes, guys, so it pays to graduate with Chris Paul. But you know, always cool to see these athletes, even in the later stages of their career going back and getting their degree.

WALKER: It's a great gift, Boris.

SANCHEZ: Yes --

WALKER: You should --

SCHOLES: Christmas around the corner, right? WALKER: Exactly, eight days away.

SANCHEZ: Yes, Andy, the other thing I love this morning in the Tiger Woods story is the pose that Tiger gets in to get a shot of his son teeing up. He's like full dad mode, just like bent down to the knees, such a heartwarming thing to see the two of them playing --

SCHOLES: Yes --

WALKER: It's nice playing together --

SCHOLES: Yes, Charlie is 13 years old now. I mean, he's grown-up big time, right?

(LAUGHTER)

He's so much bigger compared to last year, you just look at his hands --

SANCHEZ: Yes --

SCHOLES: How big they are now. Boy, it's going to be interesting to follow his career.

WALKER: Yes, we'll be watching that all day, all weekend, I'm sure. Andy, thank you so much.

SCHOLES: All right.

WALKER: All right, coming up, stranded thousands of miles from home, American tourists stuck in Machu Picchu as protests mount across the country, the latest on the efforts to get them out.

(COMMERCIAL BREAK)

[06:55:00]

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(BEGIN VIDEO CLIP)

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