UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION

Transcription

1 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 1 of 107 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION ) MAYOR AND CITY COUNCIL ) OF BALTIMORE, ) City Hall ) 100 N. Holliday St. ) Baltimore, MD ) ) Plaintiff, ) ) v. ) Case No. 1:08-cv JFM ) WELLS FARGO BANK, N.A. ) 464 California Street ) San Francisco, CA ) ) and ) ) WELLS FARGO FINANCIAL ) LEASING, INC., ) 207 9th Street ) Des Moines, IA ) ) Defendants. ) ) SECOND AMENDED COMPLAINT FOR DECLARATORY AND INJUNCTIVE RELIEF AND DAMAGES NATURE OF THE ACTION 1. This suit is brought pursuant to the Fair Housing Act of 1968, as amended, 42 U.S.C et seq., by the Mayor and City Council of Baltimore ( Baltimore or City ) to seek redress for injuries caused by Defendants Wells Fargo Bank, N.A. and Wells Fargo Financial Leasing, Inc. s pattern or practice of illegal and discriminatory mortgage lending. Specifically, Baltimore seeks injunctive relief and damages for the injuries caused by

2 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 2 of 107 foreclosures on Wells Fargo loans in minority neighborhoods and to minority borrowers that are the result of Wells Fargo s unlawful, irresponsible, unfair, deceptive, and discriminatory lending practices. 2. Since at least 2000, Wells Fargo has been engaged in a pattern or practice of targeting African-American neighborhoods in Baltimore for deceptive, predatory or otherwise unfair mortgage lending practices. The discriminatory targeting of these neighborhoods for such practices is known as reverse redlining and has repeatedly been held to violate the Fair Housing Act. 3. Reverse redlining by Wells Fargo has the effect and purpose of placing vulnerable, underserved borrowers in loans they cannot afford. Reverse redlining maximizes Wells Fargo s short-term profit without regard to the borrower s best interest, the borrower s ability to repay, or the financial health of underserved minority neighborhoods. Wells Fargo averts any significant risk to itself by selling the loans on the secondary market shortly after originating them. 4. Reverse redlining by Wells Fargo has caused an excessive and disproportionately high number of foreclosures on the mortgage loans that Wells Fargo has made in Baltimore s African-American neighborhoods. Wells Fargo s foreclosures are concentrated in these neighborhoods even though the bulk of its lending in Baltimore is in white neighborhoods. A Wells Fargo loan in a predominantly (60% or greater) African-American neighborhood is three times as likely to result in foreclosure as a Wells Fargo loan in a predominantly white neighborhood. 5. Wells Fargo would have comparable foreclosure rates in African-American and white communities if it were properly and uniformly applying responsible underwriting practices 2

3 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 3 of 107 in both. Wells Fargo possesses sophisticated underwriting technology and data that allow it to predict with precision the likelihood of delinquency, default or foreclosure. The fact that Wells Fargo s foreclosures are so disproportionately concentrated in African-American neighborhoods is not the product of chance events. To the contrary, it reflects and is fully consistent with Defendants practice of targeting African-American neighborhoods and customers for discriminatory practices and predatory pricing and products. It also reflects and is consistent with Wells Fargo s practice of failing to underwrite African-American borrowers properly and of putting these borrowers into loans they cannot afford in order to maximize the company s profits. 6. In declarations attached to this Second Amended Complaint, former Wells Fargo employees responsible for making mortgage loans in Baltimore explain precisely how the company has used discretion in pricing and financial incentives to target African-American neighborhoods for deceptive, high priced loans that predictably result in unnecessary foreclosures. 7. Wells Fargo s discriminatory practices, and the resulting unnecessary foreclosures in the City s minority neighborhoods, have inflicted significant, direct, and continuing financial harm on Baltimore. Baltimore seeks redress in this action for financial injuries that are the direct result of these foreclosures. 8. In accordance with the Court s January 6, 2010 ruling on Wells Fargo s motion to dismiss, the City has narrowed the damages it seeks in this Second Amended Complaint to damages based on (1) municipal services provided at vacant Wells Fargo foreclosure properties that became vacant because of Wells Fargo s illegal lending practices; and (2) reduced property 3

4 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 4 of 107 tax revenues from limited areas within particular neighborhoods where Wells Fargo s foreclosures constitute a disproportionately high concentration of all foreclosures. 9. Baltimore seeks specific damages suffered by the City in regard to specific Wells Fargo properties that became vacant because of Wells Fargo s illegal lending activities. These vacant Wells Fargo properties are disproportionately located in African-American neighborhoods. They have caused housing code violations requiring expensive responses by the City. The City of Baltimore Department of Housing and Community Development ( Housing Department ) has had to devote substantial personnel time and out-of-pocket funds to inspect, board, clean, condemn, pursue litigation regarding, and take other actions with respect to the vacant Wells Fargo foreclosure properties. The Fire and Police Departments have had to send personnel, fire trucks, and police cars to respond to fires and other threats to public health and safety at the vacant Wells Fargo properties. 10. Specific services that Baltimore has been required to provide at 190 of the Wells Fargo foreclosure properties that have become vacant because of reverse redlining are set forth in precise detail in paragraphs below. The costs of providing these and other services at vacant Wells Fargo foreclosure properties can be calculated precisely using detailed data maintained by the City and can be distinguished from the costs of providing municipal services at non-wells Fargo foreclosures or for other reasons. 11. Baltimore also seeks damages for lost property tax revenue from limited areas (or sub-neighborhoods ) within certain larger majority African-American neighborhoods where Wells Fargo foreclosures constitute a large percentage of all foreclosures in the area. Wells Fargo foreclosures are so disproportionately concentrated in these sub-neighborhoods, which are approximately two blocks by two blocks, that they have had a significant, deleterious, and 4

5 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 5 of 107 quantifiable effect on the values of other homes in the same sub-neighborhoods. This has reduced the property taxes collected by the City from those homes. 12. Many of these sub-neighborhoods are clustered in historically stable working- and middle-class neighborhoods and neighborhoods that have become significantly stronger in the past decade, such as Ashburton, Cylburn, Original Northwood, Reservoir Hill, and Waltherson. Each of the sub-neighborhoods is identified in paragraph 308 below. Baltimore s property tax losses attributable to the Wells Fargo foreclosures in these specific sub-neighborhoods can be calculated precisely and distinguished from losses due to other foreclosures and other causes. Baltimore does not seek property tax damages in this Second Amended Complaint other than damages based on Wells Fargo foreclosures in these specific sub-neighborhoods. 13. Absent judicial relief, the extent of Baltimore s injuries resulting from Wells Fargo s actions will continue to grow as more Wells Fargo loans move into foreclosure. 14. While Baltimore seeks redress for financial losses directly related to providing services at vacant Wells Fargo foreclosure properties and diminished tax revenues from particular sub-neighborhoods where Wells Fargo is responsible for a large portion of the foreclosures, the City does not seek to hold Wells Fargo responsible for injuries caused by non- Wells Fargo foreclosures or injuries suffered by the City as a result of foreclosures generally. PARTIES 15. Plaintiff Mayor and City Council of Baltimore is a municipal corporation, organized pursuant to Article XI-A of the Maryland Constitution. The City is authorized by the Baltimore City Charter to institute suit to recover damages suffered by the City. 16. Defendant Wells Fargo Bank, N.A. is organized as a national banking association under the laws of the United States. Upon information and belief, its corporate headquarters are 5

6 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 6 of 107 located in California. Wells Fargo Bank, N.A. maintains multiple offices in the State of Maryland and in Baltimore for the purposes of soliciting applications for and making residential mortgage loans and engaging in other business activities. 17. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. that was formerly incorporated in California as a separate company and registered to do business in the State of Maryland under the name Wells Fargo Home Mortgage, Inc. Wells Fargo Home Mortgage, Inc. merged into Wells Fargo Bank, N.A. on May 5, Wells Fargo Bank, N.A. continues to do business under the name Wells Fargo Home Mortgage, including in the State of Maryland and in Baltimore. 18. Wells Fargo Bank, N.A. has been one of the three largest providers of mortgage credit to homeowners in Baltimore every year since at least From 2002 to 2007, Wells Fargo Bank, N.A. made at least 1,341 mortgage loans a year to Baltimore homeowners with a collective value of more than $1 billion. No other lender made more than 1,200 mortgage loans in Baltimore in each year from 2004 to 2007, and only two others made more than 1,000 in each year. Wells Fargo Bank, N.A. made more loans to Baltimore homeowners than any other lender in Upon information and belief, Wells Fargo Bank, N.A. continues to make loans in Baltimore at a comparable pace. 19. Defendant Wells Fargo Financial Leasing, Inc. is an Iowa corporation that is registered to do business in Maryland. Upon information and belief, Wells Fargo Financial Leasing, Inc. engages in the solicitation of applications for and origination of residential mortgage loans in Baltimore. 20. Each of the Defendants was and is the agent, employee, and representative of the other Defendant. Each Defendant, in acting or omitting to act as alleged in this Second 6

7 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 7 of 107 Amended Complaint, was acting in the course and scope of its actual or apparent authority pursuant to such agencies, or the alleged acts or omissions of each Defendant as agent were subsequently ratified and adopted by each agent as principal. Each Defendant, in acting or omitting to act as alleged in this Second Amended Complaint, was acting through its employees, agents, and/or representatives, and is liable on the basis of the acts and omissions of its employees, agents, and/or representatives. JURISDICTION AND VENUE 21. This Court has jurisdiction over this matter pursuant to 42 U.S.C and 28 U.S.C. 1331, 1343, because the claims alleged herein arise under the laws of the United States. 22. Venue is proper in this district under 28 U.S.C. 1391(b) because Defendants conduct business in and are residents of the district and a substantial part of the events and omissions giving rise to the claims occurred in the district. FACTUAL BACKGROUND A. Subprime Lending, Predatory Practices, and Reverse Redlining 23. Prior to the emergence of subprime lending, most mortgage lenders made only prime loans. Prime lending offered uniformly priced loans to borrowers with good credit, but individuals with blemished credit were not eligible for prime loans. 24. Subprime lending developed and began growing rapidly in the mid-1990s as a result of technological innovations in risk-based pricing and in response to the demand for credit by borrowers who were denied prime credit by traditional lenders. Advances in automated underwriting allowed lenders to predict with improved accuracy the likelihood that a borrower with blemished credit will successfully repay a loan. These innovations gave lenders the ability 7

8 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 8 of 107 to adjust the price of loans to match the different risks presented by borrowers whose credit records did not meet prime standards. Lenders found that they could now accurately price loans to reflect the risks presented by a particular borrower. When done responsibly, this made credit available much more broadly than had been the case with prime lending. 25. Responsible subprime lending has opened the door to homeownership to many people, especially low- to moderate-income and minority consumers, who otherwise would have been denied mortgages. At the same time, however, subprime lending has created opportunities for unscrupulous lenders to engage in irresponsible lending practices that result in loans that borrowers cannot afford. This, in turn, leads directly to defaults and foreclosures. 26. Enticed by the prospect of short-term profits resulting from exorbitant origination fees, points, and related pricing schemes, some irresponsible subprime lenders took advantage of a rapidly rising real estate market to convince borrowers to enter into loans that they could not afford. Often this was accomplished with the help of deceptive practices and promises to refinance at a later date. These abusive subprime lenders did not worry about the consequences of default or foreclosure to their business because once made, the loans were sold on the secondary market. 27. As the subprime market grew, the opportunities for abusive practices grew with it. As a consequence, abusive and predatory practices are concentrated in the subprime mortgage market, as the federal government has found. 1 These practices, which in recent years have become the target of prosecutors, legislators and regulators, include the following: a. Failing to prudently underwrite hybrid adjustable rate mortgages (ARMs), such as 2/28s and 3/27s. After the borrower pays a low teaser rate for the first two or 1 United States Department of Housing & Urban Development and United States Department of the Treasury, Curbing Predatory Home Mortgage Lending (2000) at 1 (available at Publications/pdf/treasrpt.pdf) ( HUD/Treasury Report ). 8

9 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 9 of 107 three years, the interest rate on these loans resets to a much higher rate that can continue to rise based on market conditions. Subprime lenders often underwrite these loans based only on consideration of whether the borrower can make payments during the initial teaser rate period, without regard to the sharply higher payments that will be required for the remainder of a loan s 30-year term. Irresponsible lenders aggressively market the low monthly payment that the borrower will pay during the teaser rate period, misleading borrowers into believing that they can afford that same low monthly payment for the entire 30-year term of the loan, or that they can refinance their loan before the teaser rate period expires. b. Failing to prudently underwrite refinance loans, where borrowers substitute unaffordable mortgage loans for existing mortgages that they are well suited for and that allow them to build equity. Such refinanced loans strip much or even all of that equity by charging substantial new fees, often hiding the fact that the high settlement costs of the new loan are also being financed. Lenders that aggressively market the ability of the borrower to pay off existing credit card and other debts by refinancing mislead borrowers into believing that there is a benefit to consolidating all of their debt into one mortgage loan, obscuring the predictable fact that that the borrower will not be able to repay the new loan. The refinanced loans are themselves often refinanced repeatedly with ever-increasing fees and higher interest rates, and with ever-decreasing equity, as borrowers seek to stave off foreclosure. c. Allowing mortgage brokers to charge yield spread premiums for qualifying a borrower for an interest rate that is higher than the rate the borrower qualifies for and can actually afford. 9

10 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 10 of 107 d. Failing to underwrite loans based on traditional underwriting criteria such as debt-to-income ratio, loan-to-value ratio, FICO score, reserves, and work history. These criteria ensure that a borrower is obtaining a loan that he or she has the resources and assets to repay, and ignoring these criteria results in many loans that bear no relation to borrowers ability to repay them. This allows the lender to make a quick profit from the origination, but sets the borrower up for default and foreclosure. e. Requiring substantial prepayment penalties that prevent borrowers whose credit has improved from refinancing their subprime loan to a prime loan. Prepayment penalties not only preclude borrowers from refinancing to a more affordable loan, but reduce the borrowers equity when a subprime lender convinces borrowers to needlessly refinance one subprime loan with another. f. Charging excessive points and fees that are not associated with any increased benefits for the borrower. g. Placing borrowers in subprime loans even though they qualify for prime or FHA loans on better terms. 28. The problem of predatory practices in subprime mortgage lending is particularly acute in minority communities because of reverse redlining. As used by Congress and the courts, the term reverse redlining refers to the practice of targeting residents in certain geographic areas for credit on unfair terms due to the racial or ethnic composition of the area. In contrast to redlining, which is the practice of denying prime credit to specific geographic areas because of the racial or ethnic composition of the area, reverse redlining involves the targeting of an area for the marketing of deceptive, predatory or otherwise deleterious lending practices because of the race or ethnicity of the area s residents. This practice has repeatedly been held to 10

11 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 11 of 107 violate the federal Fair Housing Act. See, e.g., Barkley v. Olympia Mortgage Co., No. 04-cv- 875, 2007 WL (E.D.N.Y. Aug. 22, 2007); Hargraves v. Capital City Mortgage Corp., 140 F. Supp. 2d 7 (D.D.C. 2000). 29. There is a substantial body of empirical evidence demonstrating the prevalence of reverse redlining in the subprime mortgage market. These studies show that, even after controlling for creditworthiness and other legitimate underwriting factors, subprime loans and the predatory practices often associated with subprime lending are disproportionately targeted at African Americans and African-American neighborhoods Reverse redlining typically flourishes where two key conditions are met. First, the practice afflicts cities where minorities historically have been denied access to credit and other banking services. The legacy of historic discrimination, or redlining, often leaves the residents of minority communities desperate for credit and without the knowledge or experience required to identify loan products and lenders offering products with the most advantageous terms for which they might qualify. Instead, residents of underserved minority communities often respond favorably to the first offer of credit made, without regard to the fairness of the product. This makes them especially vulnerable to irresponsible subprime lenders who, instead 2 See Abt Associates, Using Credit Scores to Analyze High-Cost Lending in Central City Neighborhoods (2008) ; Calvin Bradford, Center for Community Change, Risk or Race? Racial Disparities and the Subprime Refinance Market (2002), at vii-ix (available at http%3a%2f%2fwww.knowledgeplex.org%2fkp%2freport%2freport%2frelfiles%2fccc_0729_risk.pdf); Center for Responsible Lending, Borrowers in High Minority Areas More Likely to Receive Prepayment Penalties on Subprime Loans (2005), at 1-2 (available at Center for Responsible Lending, Unfair Lending: The Effect of Race and Ethnicity on the Price of Subprime Mortgages (2006), at (available at HUD & Dept. of the Treasury, Curbing Predatory Home Mortgage Lending (2000), at 72 (available at HUD, Unequal Burden: Income and Racial Disparities in Subprime Lending in America (2000), at 4-5 (available at l_full.pdf); National Community Reinvestment Coalition, The Broken Credit System: Discrimination and Unequal Access to Affordable Loans by Race and Age Subprime Lending in Ten Large Metropolitan Areas (2003), at (available at Howell E. Jackson & Jeremy Berry, Kickbacks or Compensation: The Case of Yield Spread Premiums (2002), at 9, 125 (available at 11

12 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 12 of 107 of underwriting carefully to ensure that the loans they offer are appropriate for their customers, engage in the unscrupulous lending practices described in paragraph 27 above. 31. Second, reverse redlining arises in cities where there are racially segregated residential living patterns. This means that the people who are most vulnerable to abusive lending practices are geographically concentrated and therefore easily targeted by lenders. 32. Both of these conditions are present in Baltimore. First, Baltimore s minority communities historically have been victimized by traditional redlining practices. Through much of the twentieth century the federal government, mortgage lenders, and other private participants in the real estate industry acted to deny homeownership opportunities and choices to the City s African Americans. The Secretary of the United States Department of Housing and Urban Development admitted in 1970 that the federal government had refus[ed] to provide insurance in integrated neighborhoods, promot[ed] the use of racially restrictive covenants, and engaged in other methods of redlining. Thompson v. U.S. H.U.D., 348 F. Supp. 2d 398, 466 (D. Md. 2005). The federal government even published a map in 1937 titled Residential Security Map for Baltimore designed to facilitate private redlining by mortgage providers. See id. at 471. Mortgage lenders actively engaged in redlining for decades, treating black and [the few] integrated neighborhoods as unstable and risky. Garrett Power, Apartheid Baltimore Style: The Residential Segregation Ordinances of , 42 Md. L. Rev. 289, 319, 322 (1983). 33. The practice and effects of widespread redlining in Baltimore persisted for decades. An analysis of data from the 1980s, long after much of the institutionalized governmental and corporate apparatus of discrimination had been dismantled, found that the more African-American residents in a Baltimore neighborhood, the fewer mortgage loans and dollars the neighborhood received. Anne B. Shlay, Maintaining the Divided City: Residential 12

13 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 13 of 107 Lending Patterns in the Baltimore SMSA (Maryland Alliance for Responsible Investment, March 1987). The study also found that while 73% of majority white census tracts received a medium or high volume of single family mortgage loans, the same was true of only 5% of majority African-American tracts. 34. Second, the City is highly segregated between African Americans and whites. As the following map shows, even though Baltimore is 64% African-American and 32% white, many neighborhoods have a much higher concentration of one racial group or the other. For example, the African-American population exceeds 90% in East Baltimore, Pimlico/Arlington/Hilltop, Dorchester/Ashburton, Southern Park Heights, Greater Rosemont, Sandtown-Winchester/Harlem Park, and Greater Govans. It exceeds 75% in Waverly and Belair Edison. At the same time, the white population of Greater Roland Park/Poplar, Medfield/Hampden/Woodberry, and South Baltimore exceeds 80%, and the white population of Cross-Country/Cheswolde, Mt. Washington/Coldspring, and North Baltimore/Guilford/Homeland exceeds 70%. 13

14 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 14 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Greater Rosemont Clifton-Berea Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

15 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 15 of 107 B. Wells Fargo Causes Excessive and Unnecessary Foreclosures in Baltimore by Targeting Predatory Subprime Practices at African Americans and African- American Neighborhoods 35. Wells Fargo s failure to underwrite mortgage loans in minority and underserved communities in a responsible manner has been the subject of public attention and concern for years. For example, its practices are the focus of a 2004 report from the Center for Responsible Lending. The report concluded that the company s customers too often face the loss of their home or financial ruin as a result of its predatory practices. Center for Responsible Lending, A Review of Wells Fargo s Subprime Lending (Apr. 2004) at 10 (available at pdf). The predatory practices identified in the report include charging excessive fees; charging excessively high interest rates that are not justified by borrowers creditworthiness; requiring large prepayment penalties while deliberately misleading borrowers about the penalties; using deceptive sales practices to wrap insurance products into mortgages; convincing borrowers to refinance mortgages into new loans that only benefit Wells Fargo; deceiving borrowers into believing that they are getting fixed rate loans when they are really getting adjustable rate loans; and more. 36. Wells Fargo has intentionally taken advantage of the conditions in Baltimore to target these kinds of predatory practices at African-American neighborhoods and residents. Far from being a responsible provider of much-needed credit in minority communities, Wells Fargo is a leading cause of stagnation and decline in African-American neighborhoods where its foreclosures are concentrated. Specifically, since at least 2000, its foreclosures have been concentrated in Belair Edison, East Baltimore, Pimlico/Arlington/Hilltop, Dorchester/Ashburton, 15

16 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 16 of 107 Southern Park Heights, Greater Rosemont, Sandtown-Winchester/Harlem Park, Greater Govans and Waverly, and other neighborhoods with African-American populations exceeding 75%. 37. Fifty-one percent of Wells Fargo s foreclosures from 2005 to 2009 were in census tracts that are more than 80% African-American and 62% were in tracts that are over 60% African-American, but only 12% were in tracts that are 20% or less African-American. The figures are virtually identical for Wells Fargo s foreclosures from 2000 to 2004, with more than half in tracts that are more than 80% African-American, 64% in tracts that are over 60% African- American, and only 14.8% in tracts that are 20% or less African-American. 38. The following map represents the concentration of Wells Fargo s foreclosures in African-American neighborhoods from 2000 through

17 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 17 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Clifton-Berea Greater Rosemont Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

18 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 18 of In addition to the disproportionate distribution of Wells Fargo foreclosures in African-American neighborhoods, disparate rates of foreclosure based on race further demonstrate Defendants failure to follow responsible underwriting practices in African- American neighborhoods. While 4.82% of Wells Fargo s loans in predominantly African- American neighborhoods result in foreclosure, the same is true for only 1.63% of its loans in predominantly white neighborhoods. In other words, a Wells Fargo loan in a predominantly African-American neighborhood is three times as likely to result in foreclosure as a Wells Fargo loan in a predominantly white neighborhood. 40. Relatedly, Wells Fargo s foreclosure rate for loans in neighborhoods that are 80% or more African-American is nearly three times as high as the overall average of the other major mortgage lenders in Baltimore, while the ratio for its loans in neighborhoods that are less than 20% African-American is less than half the average. 41. The type of loans that result in foreclosure provides further evidence that Wells Fargo is engaged in a pattern or practice of reverse redlining in Baltimore. Approximately 65% of Wells Fargo s Baltimore loans that result in foreclosure are fixed rate loans. This ratio is the same in both African-American and white neighborhoods. This establishes that there is no legitimate reason for the stark difference in Wells Fargo s foreclosure rates by race. 42. Unlike adjustable rate loans, where the price may fluctuate with changing market conditions, the performance of fixed rate loans is relatively easy to predict using automated underwriting models and loan performance data because monthly payments do not vary during the life of the loan. Using these sophisticated risk assessment tools, and relying on traditional underwriting criteria such as FICO scores, debt-to-income ratios, loan-to-value ratios, and cash reserves, any lender engaged in responsible underwriting practices designed to identify qualified 18

19 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 19 of 107 borrowers can predict with statistical certainty the likelihood of default and/or delinquency. Lenders engaged in marketing fixed rate loans in a fair and responsible manner should have no difficulty sifting out unqualified borrowers, or borrowers whose loans would likely result in delinquency, default or foreclosure. 43. Because the percentage of fixed rate loans is so high and the same in both African-American and white neighborhoods, Wells Fargo should, if it properly underwrites, have comparable foreclosure rates in both communities. The fact that Wells Fargo s underwriting decisions result in foreclosure three times as often with respect to African-American than white neighborhoods means that it is not following fair or responsible underwriting practices with respect to African-American customers. 44. The disparate foreclosure rates are instead consistent with the type of unscrupulous subprime lending practices described in paragraphs 27, 35, Wells Fargo engages in these and similarly inappropriate practices when making loans to African Americans and in African-American neighborhoods. This pattern or practice of targeted activities fully explains the disparate rates of foreclosure. The disparities are not the result of or otherwise explained by legitimate non-racial underwriting criteria. 45. A closer look at Wells Fargo s lending practices and the characteristics of its loans in Baltimore demonstrates that it is engaged in a pattern or practice of reverse redlining with respect to the City s African-American neighborhoods. As described in sections B.1 through B.7 below, sworn statements of former Wells Fargo employees and examination of Wells Fargo s loans indicate it is engaged in unfair and discriminatory practices in Baltimore s African-American neighborhoods that have the effect and purpose of placing inexperienced and underserved borrowers in loans they cannot afford. These practices maximize short-term profit 19

20 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 20 of 107 without regard to the borrower s best interest, the borrower s ability to repay, or the financial health of underserved minority neighborhoods. This targeted pattern or practice has resulted in the disproportionately high rate of foreclosures on Wells Fargo loans found in Baltimore s African-American neighborhoods. 1. Former Wells Fargo Employees Explain How the Company Targets African Americans in Baltimore for Subprime Loans and Abusive Subprime Lending Practices 46. Attached to this Second Amended Complaint are sworn declarations from two former Wells Fargo employees, Elizabeth Jacobson and Tony Paschal. Until late in 2007, Ms. Jacobson and Mr. Paschal were responsible for making loans on behalf of Wells Fargo in the greater Baltimore region. See Attach. A ( Jacobson Decl. ); Attach. B ( Paschal Decl. ). Jacobson and Paschal describe in great detail how Wells Fargo has targeted African Americans and residents of African-American neighborhoods in and around Baltimore for abusive subprime lending practices 47. Jacobson began working for Wells Fargo as a loan officer in August Jacobson Decl. 2. She was subsequently promoted to Sales Manager and remained in that position until leaving the company in December Id. 2, 34. Jacobson made subprime loans exclusively. Id. 3, 10. She made the loans in a geographic area called Region 12 that included Baltimore, Prince George s County, Northern Virginia, and other places. Id. 3. Most of her customers were African Americans, including African Americans in Baltimore. Id. 26. She was one of Wells Fargo s top three subprime loan officers nationally year after year, and in some years was the company s top subprime loan officer in the country. Id. 4. Between 2003 and 2007, Jacobson completed approximately $50 million in subprime loans per year. Id. 5. This translates into about 180 loans per year. Id. Jacobson is white. 20

21 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 21 of Paschal was a Wells Fargo loan officer from September 1997 to September 2007 (with a hiatus of approximately 2½ years beginning in June 1999). Paschal Decl His job was to solicit Wells Fargo borrowers to refinance their home mortgage with a prime or Federal Housing Administration ( FHA ) loan. Id. 3, 7. FHA loans have interest rates that are closer to prime than subprime rates. Id. 23. Paschal referred the borrowers who did not qualify to the Mortgage Resources division, known as MORE, which exclusively originates subprime loans. Id. 7. He worked on the same floor of the same building as the MORE employees and he communicated with them daily. Id. 49. Jacobson s and Paschal s declarations confirm that Wells Fargo targeted African Americans and African-American neighborhoods in Baltimore and elsewhere for deceptive, abusive and predatory subprime loans and that Wells Fargo s subprime loan officers engaged in a myriad of deceptive, abusive and predatory practices. This constitutes reverse redlining. a. Targeting African Americans for Subprime Mortgage Loans 50. The declarations show that Wells Fargo targeted African Americans in Baltimore in a variety of ways. One was by marketing its subprime products to predominantly African- American zip codes in Baltimore, Prince George s County, and Washington, D.C. Paschal Decl. 8, 10. Wells Fargo did not target white areas for subprime loans. Paschal Decl. 8. Paschal heard employees in the MORE division comment that Howard County was not good for subprime loans because it has a predominantly White population. Id. 51. Wells Fargo also targeted African-American churches in the City and their congregations for subprime loans. Jacobson Decl , 30; Paschal Decl. 12. Wells Fargo did not target white churches [w]hen it came to marketing, any reference to church or 21

22 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 22 of 107 churches was understood as code for African-American or black churches. Jacobson Decl Wells Fargo even assigned employees to make presentations at the churches on the basis of race. During a conference call in 2005 with subprime loan officers and branch managers about making presentations to black churches in Baltimore, the loan officers were told that only employees of color could attend. Jacobson Decl. 28. Jacobson was later told that she could come, but only if she carried someone s bag. Id. 53. Wells Fargo also targeted African Americans for subprime loans through a variety of special events. Jacobson Decl. 29. Wells Fargo selected employees to make presentations at these events on the basis of race, as it did with church presentations. One such event was a wealth building seminar designed to promote subprime products in 2005 in Greenbelt, Maryland, where the audience was expected to be predominantly African-American. Id. Jacobson was told by the manager of Emerging Markets, a subprime unit that targeted African Americans, that she was too white to appear before the audience at the seminar. Id. 27, 29. Jacobson complained to higher management, but received no response and no action was taken. Id. 29, Wells Fargo also created a unit called the Affinity Marketing Group in its Silver Spring, Maryland office to target African Americans, including members of African-American churches. Paschal Decl. 12. All the employees of the Affinity Marketing Group were African- American. Id. Subprime loan officers in the group who targeted African Americans were selected on the basis of their race and Wells Fargo s desire to use African-American employees to target African-American customers. Id. 22

23 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 23 of Another way in which Wells Fargo targeted African Americans was by tailoring its subprime marketing materials on the basis of race. Id. 11. It devised software to print out subprime promotional materials in different languages, one of which was called African American by Wells Fargo. Id. A computer screen shot from 2006 showing this option is attached to Paschal s declaration as Exhibit A. Wells Fargo did not remove the African- American language option until Paschal complained. Id. 56. Wells Fargo s subprime loan officers held derogatory stereotypes of African Americans, which contributed to their targeting of African Americans in and around Baltimore for subprime loans. Jacobson Decl. 28; Paschal Decl. 8, 16. Subprime loan officers described African-American and other minority customers by saying those people have bad credit and those people don t pay their bills, and by calling minority customers mud people and niggers. Paschal Decl. 8, 16. They referred to loans in minority communities as ghetto loans. Id. They described Prince George s County, which has a slightly higher percentage of African-American residents than Baltimore, as the subprime capitol of Maryland. Jacobson Decl. 26. At the same time, they believed that areas such as Howard County that are predominantly white were bad locations for making subprime loans. Paschal Decl. 8. b. Steering People Who Qualify for Prime Mortgages into Subprime Mortgages 57. Jacobson s and Paschal s declarations demonstrate that Wells Fargo regularly steered borrowers who qualified for prime loans into subprime loans. Wells Fargo gave loan officers substantial financial incentives and the discretion to steer borrowers in this manner. Jacobson Decl. 8, 10-12, 15-16, 32; Paschal Decl Paschal was instructed by management to refer borrowers who could have qualified for more advantageous prime or FHA 23

24 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 24 of 107 loans to the subprime unit. Paschal Decl. 9. He was even reprimanded for giving too many people FHA loans instead of referring them for subprime loans. Id Paschal saw many files of minority customers who had good credit scores and credit characteristics in subprime loans who should have qualified for prime or FHA loans. Paschal Decl. 12. Jacobson likewise made subprime loans to many people with prime credit who were referred to her by loan officers responsible for making prime loans. Jacobson Decl. 9. She could identify people steered in this manner if she had the opportunity to review Wells Fargo s loan files. Id. 59. The financial incentives to steer people into subprime loans were very substantial. A reps, who made prime loans, generally made more money in referral fees by referring a person with prime credit to a subprime loan officer than by originating a prime loan. Jacobson Decl. 8. Subprime loan officers, whose pay was based on commissions and fees, likewise made more money by originating loans with higher interest rates and fees. Id. 6. This allowed Jacobson to gross well over half a million dollars in 2004 and again in Id. The effect of Wells Fargo s compensation system for subprime loans was to put bounties on minority borrowers. Paschal Decl Wells Fargo also gave lavish gifts and trips to successful subprime loan officers, even as foreclosures increased in recent years. Jacobson Decl. 32. This was part of a culture that focused only on making the most money possible and not on putting borrowers in loans that were appropriate for them. Id. 61. Loan officers were able to steer people with good credit into subprime loans because Wells Fargo gave them broad discretion. As Jacobson states, underwriting guidelines and pricing rules for prime and subprime loans... [provided] more than enough discretion to 24

25 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 25 of 107 allow A reps to steer prime loan customers to subprime loan officers like me. Likewise, the guidelines gave me enough discretion to figure out how to qualify most of the referrals for a subprime loan once I received the referral. Jacobson Decl. 11. This included discretion to decide which subprime loan products to offer the applicant [o]nce I received a referral from an A rep. Id Wells Fargo loan officers developed a multitude of unscrupulous ways to apply their discretion to get away with steering subprime loans to people who qualified for prime or FHA loans. One method was to intentionally mislead customers by, for example, giving stated income loans to customers who could document their income, or telling customers not to make a down payment or to take more cash from their home equity, which would automatically cause a prime loan to flip into a subprime loan. Jacobson Decl. 17; Paschal Decl. 14. Another was to intentionally mislead underwriters by telling the underwriting department that the customer did not want to provide documentation for the loan, had no source[d] or seasoned assets, or needed to get the loan closed quickly. Jacobson Decl. 15. Some loan officers would simply falsify loan applications. Id. 18. Loan officers used such techniques to increase their commissions while discriminating against minority applicants. Paschal Decl In 2004 Wells Fargo responded to public criticism by creating filters that were supposed to prevent the steering of prime customers into subprime loans. Jacobson Decl. 19; Paschal Decl. 18. It was widely understood that the filters were not effective. Id. Loan officers learned many ways to work around the filters by using the broad discretion they were afforded by Wells Fargo. Id. These techniques were widely used. Id. Senior managers were aware of their use and eventually made certain changes in response, but the loan officers continued to easily undermine the filters. Jacobson Decl. 19. The filters were also ineffective 25

26 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 26 of 107 because Wells Fargo did not create disincentives to steering prime customers into subprime loans. Paschal Decl. 18. To the contrary, employees continued to have substantial financial incentives to engage in such steering and continued to do so. Id. Management knew that these practices continued. c. Other Abusive Subprime Lending Practices Engaged in by Wells Fargo 64. Jacobson s and Paschal s declarations further demonstrate that Wells Fargo loan officers had substantial discretion to increase the costliness of subprime loans and that they regularly used this discretion at the expense of subprime borrowers. 65. The loan officers had broad discretion to set the pricing, points, and fees for subprime loans. Jacobson Decl. 22, 24; Paschal Decl. 5, 13. Even when Wells Fargo created some limits in 2007, loan officers retained significant discretion. Jacobson Decl. 24. Loan officers had strong financial incentives to increase the pricing, points, and fees because it would increase their commissions. Id.; Paschal Decl Loan officers also used this discretion to harm African-American and other minority customers by telling them that interest rates were locked when, in fact, the rates were not locked. Paschal Decl. 5. This prevented minority customers from getting lower interest rates, but loan officers lowered interest rates for whites in the same situation. Id. 67. Loan officers also used their discretion to select loan products and set rates and fees to discriminate[] against minority loan applicants by not offering them [] better or newer products which had lower fixed interest rates and fees. Paschal Decl Jacobson s and Paschal s declarations further demonstrate that Wells Fargo loan officers deceived subprime borrowers about the inclusion and significance of onerous prepayment penalties in the terms and conditions of their loans. Jacobson Decl. 13; Paschal 26

27 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 27 of 107 Decl. 15. The prepayment penalties typically made it difficult for borrowers to refinance into new and better loans. Jacobson Decl. 13. Loan officers were encouraged by Wells Fargo trainers not to tell applicants about the prepayment penalties. Paschal Decl. 15. When the subject was raised, loan officers told borrowers that prepayment penalties could be waived, even though they could not be, or otherwise downplayed their significance. Jacobson Decl. 13; Paschal Decl Jacobson describes another abusive subprime lending practice which some Wells Fargo subprime loan officers implemented by intentionally falsifying loan files so that they could make loans to borrowers who could not afford them. Loan officers falsified applications by cutting and pasting the credit report or income documentation of borrowers who had been approved in the past into the file of applicants who would otherwise not qualify for a loan. Jacobson Decl. 18. These tactics made the applicants appear to the underwriters to satisfy the qualifications for subprime loans even though the loan officers knew that they did not. Id. Jacobson reported this conduct to management but is not aware of any corrective action that was taken. Id. 18, 31. Foreclosures are a predictable result of this practice. 70. Wells Fargo also qualified adjustable rate subprime loans with the assumption that the borrower would pay the teaser rate for the full life of the loan even though this lower rate only applied during the first two or three years of the loan. Jacobson Decl. 16. Foreclosures are a predictable result of this practice. 71. Wells Fargo also used mortgage brokers and listing agents to target African Americans and African-American neighborhoods in Baltimore and Prince George s County and to engage in the other abusive lending practices described by Jacobson and Paschal. A declaration from Peter Hebert, a mortgage broker whose company worked for Wells Fargo, 27

28 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 28 of 107 demonstrates that Wells Fargo used brokers and agents in this inappropriate and unlawful fashion. See Attach C. These brokers and listing agents are Wells Fargo s agents and Wells Fargo is responsible for their acts and omissions. 2. Publicly Available Home Mortgage Disclosure Act Data Shows that Wells Fargo s High-Cost Loans are Disproportionately Located in African- American Neighborhoods in Baltimore 72. Publicly available data reported by Wells Fargo to federal regulators pursuant to the Home Mortgage Disclosure Act shows that in 2007, Wells Fargo made high-cost loans (i.e., loans with an interest rate that was at least three percentage points above a federally-established benchmark) to 43% of its African-American mortgage customers in Baltimore, but only to 9% of its white customers in Baltimore. In 2006, the respective rates were 65% and 15%; in 2005, the respective rates were 54% and 14%; in 2004, the respective rates were 31% and 10%. The proportion of refinance loans that are high cost is especially pronounced. In 2004, 2005, 2006, and 2007, a Wells Fargo refinance loan to an African-American borrower was 3.2 times more likely to be high cost than a refinance loan to a white borrower. 73. Racial disparities in the pricing of Wells Fargo s mortgage loans are confirmed by a study released this year, which also found that the disparity actually increased at higher income levels. National People s Action, The Truth About Wells Fargo: Irresponsible Lending and African Americans (2009) at 2 (available at The maps that follow show the geographic distribution of high-cost loans in African-American and white neighborhoods in Baltimore. These maps demonstrate that Wells Fargo s high-cost loans are disproportionately located in Baltimore s African-American 28

29 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 29 of 107 neighborhoods, including, among others, Sandtown-Winchester/Harlem Park, Upton/Druid Heights, Dorchester/Ashburton, and Madison/East End. 29

30 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 30 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Clifton-Berea Greater Rosemont Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

31 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 31 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Clifton-Berea Greater Rosemont Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

32 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 32 of The fact that high-cost loans involving all of Wells Fargo s loan products are more heavily concentrated in Baltimore s African-American neighborhoods is consistent with the practice of reverse redlining and, upon information and belief, has contributed significantly to the disproportionately high rates of foreclosure in Baltimore s African-American communities. Within the subset of high-cost loans, however, the fact that a disproportionately large percentage of Wells Fargo s high-cost loans in African-American neighborhoods are refinance loans is particularly significant, for it is both consistent with and indicative of a deceptive and predatory subprime practice that involves encouraging minority borrowers who already have loans to refinance at excessive cost with little benefit. This increases the likelihood of foreclosure and, upon information and belief, has contributed to the disproportionately high rate of foreclosures in Baltimore s African-American communities. 3. Wells Fargo s Pricing Sheets Show that It Targets Homes that Are More Likely to Be Located in African-American Neighborhoods for Interest Rate Increases, and Lowers Rates for Homes that Are Disproportionately Located in White Neighborhoods 76. One reason that residents of Baltimore s African-American neighborhoods are more likely to pay higher prices for Wells Fargo loans than residents of Baltimore s white neighborhoods is the discriminatory pricing found on its pricing sheets. As set forth explicitly on the Wells Fargo Home Mortgage 2005 pricing sheet, attached as Attachment D, Wells Fargo requires a 50 basis point increase in the loan rate for loans of $75,000 or less, a 12.5 basis point decrease for loans of $150,000 to $400,000, and a 25 basis point decrease for loans larger than $400,000. This means that a borrower with a $75,000 thirty-year fixed rate loan who qualifies for an 8% interest rate instead receives an 8.5% interest rate, which costs an extra $9,493 over the life of the loan. An equally creditworthy borrower with a $150,000 loan receives a 7.875% 32

33 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 33 of 107 interest rate, which costs $4,698 less than an 8% loan. A similarly qualified borrower with a $400,001 loan would receive a 7.75% interest rate, which costs $24,987 less than an 8% loan. 77. The Fannie Mae Foundation has likewise documented how modest interest rate disparities can cause dramatic financial consequences for borrowers steered into higher-cost loans. James H. Carr and Jenny Schuetz, Fannie Mae Foundation, Financial Services in Distressed Communities: Framing the Issue, Finding Solutions (2001) at (available at (1% increase in interest rate on 30-year $81,000 mortgage translates into loss of over $78,000 in wealth due to increased payments and lost investment opportunity). 78. Wells Fargo s pricing rules have a clear and foreseeable disproportionate adverse impact on African-American borrowers. As demonstrated by the maps that follow, loans originated by Wells Fargo in Baltimore from 2004 through 2007 in the amount of $75,000 and less were almost three times as likely to be in census tracts where the population is predominantly African-American than in tracts where the population is predominantly white. By contrast, loans originated by Wells Fargo in Baltimore of more than $150,000 were 3.25 times as likely to be in tracts that are predominantly white than in tracts that are predominantly African- American. 33

34 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 34 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Clifton-Berea Greater Rosemont Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

35 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 35 of 107 Cross-Country/Cheswolde North Baltimore/Guilford/Homeland Greater Roland Park/Poplar Mt. Washington/Coldspring Medfield/ Hampden/ Woodberry Greater Govans The Waverlies Belair Edison Pimlico/Arlington/Hilltop Southern Park Heights Dorchester/Ashburton Clifton-Berea Greater Rosemont Madison/East End Upton/Druid Heights Sandtown- Winchester/Harlem Park South Baltimore Indicates Majority African-American Neighborhood Indicates Majority White Neighborhood

36 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 36 of Upon information and belief, the discriminatory pricing reflected in Wells Fargo s pricing sheets is consistent with unfair practices associated with reverse redlining and has contributed significantly to the disproportionately large number of foreclosures found in Baltimore s African-American communities. 4. Investigation of Wells Fargo s Pricing Practices in Philadelphia Further Demonstrates the Company Is Targeting the African-American Community for Unfair and Improper Lending Practices 80. Discriminatory pricing observed in Wells Fargo s loan data in Baltimore is consistent with findings drawn from data obtained in litigation brought against Wells Fargo in Philadelphia. An expert report in a pending lawsuit based on Wells Fargo s Philadelphia loans concluded that African American borrowers, and borrowers residing in African American neighborhoods (i.e., census tracts), pay more than comparable non-african Americans and residents of communities in which White people predominate. Aff. of I. Goldstein, Walker v. Wells Fargo Bank, N.A., No. 05-cv-6666 (E.D. Pa. July 20, 2007) at 7 (Docket No. 24, Attach. 1). 81. Upon information and belief, Wells Fargo s pricing practices in Philadelphia are consistent with its practices in Baltimore, and provide further evidence that the company is engaged in a pattern or practice of unfair lending that contributes significantly to the disproportionately high rate of foreclosure found in Baltimore s African-American neighborhoods. 5. Wells Fargo Underwrites Adjustable Rate Loans in Baltimore s African- American Neighborhoods that Borrowers Cannot Afford 82. Wells Fargo frequently originates 3/27 adjustable rate mortgages, and frequently originated 2/28 adjustable rate mortgages until mid-2007, to borrowers from predominantly African-American neighborhoods in Baltimore. Thirty-four percent of Wells 36

37 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 37 of 107 Fargo s foreclosures from 2000 to 2008 involved such loans. Unless properly underwritten, such loans are destined to fail. 83. Wells Fargo does not properly underwrite these loans when made to African Americans and in African-American neighborhoods. Wells Fargo does not adequately consider the borrowers ability to repay these loans, especially after the teaser rate expires and the interest rate increases. The fact that these loans would result in delinquency, default and foreclosure for many borrowers was, or should have been, clearly foreseeable to Wells Fargo at the time the loans were made. 84. Most of the loans that Elizabeth Jacobson made were adjustable rate mortgages. Jacobson Decl. 13. Jacobson confirms in her declaration that Wells Fargo underwrites these loans as if the teaser rate will apply for the full life of the loan instead of considering the borrowers ability to repay the loan after the teaser rate expires in two or three years. Id The use of 2/28 and 3/27 adjustable rate mortgages in the manner described above is consistent with the practice of reverse redlining, has subjected African-American borrowers to unfair and deceptive loan terms, and has contributed significantly to the high rate of foreclosure found in Baltimore s African-American neighborhoods. 6. The Caps on Wells Fargo s Adjustable Rate Loans Are Higher in African- American Neighborhoods 86. Upon information and belief, Wells Fargo has discretion to apply different caps on adjustable rate loans. The cap is the maximum rate that a borrower can be charged during the life of an adjustable rate loan. 87. The average cap on a Wells Fargo adjustable rate loan that was subject to foreclosure in 2005 or 2006 in predominantly African-American neighborhoods was 14.13%. The cap on such loans in predominantly white neighborhoods was only 13.61%. 37

38 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 38 of The disparity observed in caps imposed on adjustable rate loans in predominantly African-American neighborhoods and predominantly white neighborhoods further demonstrates that Well Fargo is engaged in a pattern or practice of unfair and improper lending in Baltimore s African-American communities that contributes significantly to the high rate of foreclosure in these neighborhoods. 7. Wells Fargo s Loans to African Americans Result in Especially Quick Foreclosures 89. A comparison of the time from origination to foreclosure of Wells Fargo s loans in Baltimore shows a marked disparity with respect to the speed with which loans to African Americans and whites move into foreclosure. The average time to foreclosure for African- American borrowers is 1.27 years. With white borrowers it is 1.45 years, or 14% longer. 90. This disparity in time to foreclosure is further evidence that Wells Fargo is engaged in lending practices consistent with reverse redlining. As with all of the practices identified in paragraphs above, and like the abusive practices identified in paragraphs 27 and 35 above, the disparity in time to foreclosure demonstrates that Wells Fargo is engaged in irresponsible underwriting in African-American communities that does not serve the best interests of borrowers. If Wells Fargo were applying the same underwriting practices in Baltimore s African-American and white neighborhoods, there would not be a significant difference in time to foreclosure. Were Wells Fargo underwriting borrowers in both communities with equal care and attention to proper underwriting practices, borrowers in African-American communities would not find themselves in financial straits significantly sooner during the lives of their loans than borrowers in white communities. The faster time to foreclosure in African-American neighborhoods is consistent with underwriting practices in the 38

39 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 39 of 107 African-American community that are less concerned with determining a borrower s ability to pay and qualifications for the loan than they are in maximizing short-term profit. 91. The HUD/Treasury Report confirms that time to foreclosure is an important indicator of predatory practices. Citing Baltimore specifically, HUD and Treasury stated that [t]he speed with which the subprime loans in these communities have gone to foreclosure suggests that some lenders may be making mortgage loans to borrowers who did not have the ability to repay those loans at the time of origination, and that lenders should not lend to borrowers that do not have the capacity to repay the loans that the lender offers. HUD/Treasury Report at The difference in time to foreclosure in Baltimore s African-American and white neighborhoods is especially important because foreclosures occur more quickly in Baltimore than in neighboring jurisdictions, including Philadelphia and New Castle County, Delaware (which includes Wilmington). This means that the injuries that result from foreclosures in Baltimore are compounded, and therefore grow, at a faster pace. INJURY TO BALTIMORE CAUSED BY WELLS FARGO S DISCRIMINATION IN MORTGAGE LENDING 93. Baltimore has suffered financial injuries as a direct result of Wells Fargo s pattern or practice of reverse redlining and the resulting disproportionately high rate of foreclosure on Wells Fargo loans to African Americans and in Baltimore s majority African-American neighborhoods. Baltimore seeks redress for these injuries. The City does not seek redress in this action for injuries resulting from foreclosures on mortgages originated by lenders that are not associated with Wells Fargo. 94. Wells Fargo continues to engage in the discriminatory pattern or practice described herein with similar and continuing deleterious consequences to the City. 39

40 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 40 of In accordance with the Court s January 6, 2010 ruling on Wells Fargo s motion to dismiss, the City has narrowed the damages it seeks in this Second Amended Complaint to damages based on (1) municipal services provided at vacant Wells Fargo foreclosure properties that became vacant because of Wells Fargo s illegal lending practices; and (2) reduced property tax revenues from limited areas within particular neighborhoods where Wells Fargo s foreclosures constitute a disproportionately high concentration of all foreclosures. A. Baltimore Has Been Injured By Having to Provide Costly Municipal Services at Specifically Identified Properties in African-American Neighborhoods that Have Become Vacant as a Direct Result of Discriminatory Loans Originated By Wells Fargo 96. As alleged in paragraphs 33 through 92 above, Wells Fargo s discriminatory practices have resulted in disproportionate rates of foreclosure and notices of foreclosure for Baltimore s African-American neighborhoods and African-American borrowers because Wells Fargo s lending practices have put these targeted borrowers in discriminatory loans that they cannot afford or make timely payment on. These foreclosure notices result in high and unnecessary rates of vacancy at Wells Fargo properties. Of the 640 foreclosure notices for Wells Fargo loans in Baltimore from 2000 through 2009 of which the City is currently aware, 486 (76%) are in majority African-American neighborhoods. Vacancies resulting from these 640 foreclosures are also heavily concentrated in majority African-American neighborhoods. In majority African-American neighborhoods, 270 of the Wells Fargo foreclosure properties became vacant after Wells Fargo made the loan. 97. Vacant Wells Fargo foreclosure properties have caused direct costs to the City because the City has been required to provide a multitude of increased municipal services at the properties. These services would not have been necessary if the properties were occupied. 40

41 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 41 of Vacant Wells Fargo foreclosure properties have resulted in violations of Baltimore s municipal housing code. The City s housing department has had to respond to these violations. The housing department s responses have required substantial personnel time and out-of-pocket costs. Among other things, the City has had to inspect the vacant properties; board the vacant properties that are open to casual entry; collect garbage at the vacant properties; cut high grass and weeds at the vacant properties; take legal action to prosecute the housing code violations at the vacant properties; condemn the vacant properties that are not structurally sound and that threaten public safety; and make structural repairs to stabilize vacant properties that threaten public safety. 99. The City s fire department has had to send personnel and fire trucks to vacant Wells Fargo foreclosure properties to respond to fire hazards and other public health and safety threats that arise at these properties because the properties are vacant The City s police department has likewise had to send personnel and police vehicles to vacant Wells Fargo foreclosure properties to respond to public health and safety threats that arise at these properties because the properties are vacant Other City departments have had to devote personnel and incur costs to address other types of problems arising at specific vacant Wells Fargo foreclosure properties, such as vermin infestation, burst water pipes, and more. The City also has administrative costs associated with the provision of increased municipal services at vacant Wells Fargo foreclosure properties. 3 3 A study commissioned by the Homeownership Preservation Foundation confirms that these types of costs are caused by foreclosures and vacancies and that they can be discerned and calculated precisely. See W. Apgar, M. Duda & R. Gorey, The Municipal Costs of Foreclosures: A Chicago Case Study (Feb. 27, 2005) at (available at FullVersion.pdf). The study isolated twenty-six types of costs incurred by fifteen government agencies in response to foreclosures in Chicago. It then analyzed the amount of each cost based on different foreclosure scenarios, such 41

42 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 42 of The municipal services that the City has had to provide at the vacant Wells Fargo foreclosure properties inspecting, boarding, cleaning, cutting grass and weeds, prosecuting, condemning, sending fire personnel, sending police personnel, and more have been recorded, have costs that can be measured precisely, and are expensive Each of the Wells Fargo properties specifically identified in paragraphs 105 through 294 below became vacant because of Wells Fargo s discriminatory lending practices and the foreclosures that are the direct result of those practices. Baltimore has been required to provide increased municipal services at these properties. Each of the municipal services provided by Baltimore at every vacant Wells Fargo foreclosure property is described in the paragraphs immediately below The costs to the City of taking each of the actions listed for each vacant Wells Fargo foreclosure property below constitute specific damages suffered by the City because of Defendants illegal lending practices. Baltimore will have to continue to provide these and other municipal services at these properties in the future, particularly with respect to the 138 that remain vacant N. Carey Street: The housing department devoted personnel time to conduct one physical inspection of the property in 2006, one physical inspection of the property in 2007, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the as whether the home is left vacant, whether and to what degree criminal activity ensues, and whether the home must be demolished. The study found that the total costs ran as high as $34,199 per foreclosure. 4 In the course of discovery, the City will identify additional services that it has provided at these properties. It will also identify additional vacant Well Fargo foreclosure properties in African-American neighborhoods where it has been required to provide increased municipal services. 42

43 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 43 of 107 property. The police department dispatched officers to the property in 2006 in response to a call for service N. Payson Street: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property once in 2002, twice in 2004, once in 2006, and once in 2007 in response to calls for service. The fire department dispatched a vehicle and personnel to the property in response to a call for service in The fire department dispatched a fire truck, a fire engine, a medical vehicle, a Battalion Chief vehicle, and eleven personnel to the property in response to a call for service in W. Lombard Street: The police department dispatched officers to the property in 2006 in response to a call for service Scott Street: The police department dispatched officers to the property in 2003 and again in 2004 in response to calls for service E. North Avenue: The housing department devoted personnel time to conduct one physical inspection of the property in 2006 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property twice in 2007 and three times in 2008 in response to calls for service. The fire department dispatched a vehicle and personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in

44 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 44 of E. Federal Street: The housing department devoted personnel time to conduct one physical inspection of the property in 2007 and fifteen physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property six times. The police department dispatched officers to the property in 2008 in response to calls for service E. Biddle Street: The housing department devoted personnel time to conduct two physical inspections of the property in 2003 and an additional physical inspection of the property in The police department dispatched officers to the property twice in 2003, twice in 2006, six times in 2007, and once in 2008 in response to calls for service. The fire department dispatched a fire truck, two medical vehicles, and seven personnel to the property in response to a call for service in E. Chase Street: The police department dispatched officers to the property in 2003 in response to a call for service E. Monument Avenue: The housing department devoted personnel time to conduct one physical inspection of the property in 2005, one physical inspection of the property in 2006, and an additional physical inspection of the property in The police department dispatched officers to the property three times in 2004, once in 2007, once in 2008, and five times in 2009 in response to calls for service Jefferson Street: The police department dispatched officers to the property in 2008 in response to calls for service N. Rose Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2004 and to reboard the property later in the same year. The housing department devoted additional time and 44

45 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 45 of 107 expense to reboard the property in 2006 and again in The housing department devoted personnel time to clean the property in 2004 and again in The housing department devoted personnel time to conduct seven physical inspections of the property in 2004; one physical inspection of the property in 2005; four physical inspections of the property in 2006, five physical inspections of the property in 2007, one physical inspection of the property in 2008, and three physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property twice in 2005 in response to calls for service N. Potomac Street: The housing department devoted personnel time to conduct four physical inspections of the property in 2004, one physical inspection of the property in 2005, one physical inspection of the property in 2007, and one physical inspection of the property in The police department dispatched officers to the property in 2004 and again in 2007 in response to a call for service N. Abington Avenue: The housing department devoted personnel time to clean the property three times in The housing department devoted personnel time to conduct one physical inspection of the property in 2006, nine physical inspections of the property in 2008, and two physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property in 2005 and again in 2008 in response to calls for service. The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in

46 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 46 of Gwynn Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in 2005, one physical inspection of the property in 2006, one physical inspection of the property in 2007, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property four times in 2006 and three times in 2009 in response to calls for service. The fire department dispatched a fire truck, two fire engines, and twelve personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to another call for service in Allendale Street: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2007 and again in 2008 in response to calls for service Allendale Street: The housing department devoted personnel time to conduct two physical inspections of the property in The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. 46

47 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 47 of Presstman Street: The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property Poplar Grove Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property two times in The housing department devoted personnel time to clean the property once in 2005, twice in 2006, and once in The housing department devoted personnel time to conduct seven physical inspections of the property in 2006, seven physical inspections of the property in 2007, and three physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property once in 2007, five times in 2008, and once in 2009 in response to calls for service Brighton Street: The police department dispatched officers to the property in 2003 in response to a call for service N. Ellamont Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct eleven physical inspections of the property in 2007, three physical inspections of the property in 2008, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner 47

48 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 48 of 107 regarding housing code violations at the property nine times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property twice in 2007 in response to calls for service. The fire department dispatched a vehicle and personnel to the property in response to a call for service in The fire department dispatched a fire truck and four personnel to the property in response to a call for service in Wildwood Parkway: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct four physical inspections of the property in 2006, two physical inspections of the property in 2007, and one physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property N. Augusta Drive: The housing department devoted personnel time to conduct four physical inspections of the property in 2006, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property three times in 2007, once in 2008, and three times in 2009 in response to calls for service Marydell Road: The housing department devoted personnel time to conduct two physical inspections of the property in 2007 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to 48

49 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 49 of 107 the property five times in 2007 and twice in 2008 in response to calls for service. The fire department dispatched two fire trucks, five fire engines, a medical vehicle, two Battalion Chief vehicles, a safety officer vehicle, and thirty-three personnel to the property in response to a call for service in W. North Avenue: The police department dispatched officers to the property in 2005 in response to a call for service Bryant Avenue: The police department dispatched officers to the property three times in 2002 in response to calls for service Keyworth Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in Woodbrook Avenue: The housing department devoted personnel time to conduct five physical inspections of the property in 2004, five physical inspections of the property in 2005, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property seven times Perlman Place: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2006 and to reboard the property later in the same year. The housing department devoted additional time and expense to reboard the property twice in 2007 and three times in The housing department devoted personnel time to clean the property twice in 2006, twice in 2007, three times in 2008, and once in The housing department devoted personnel time to conduct two physical inspections of the property in 2002, two physical inspections of the property in 2003, four physical inspections of the property in 2004, five physical inspections of the property in 2006, 49

50 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 50 of 107 five physical inspections of the property in 2007, four physical inspections of the property in 2008, and seven physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times. The housing department devoted personnel time to inspect and condemn the property in The police department dispatched officers to the property twice in 2002, once in 2004, twice in 2005, once in 2006, and once in 2007 in response to calls for service Clifton Park Terrace: The housing department devoted personnel time to conduct two physical inspections of the property in 2005 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property twice in 2005 and four times in 2006 in response to calls for service Pentridge Road: The housing department devoted personnel time to conduct one physical inspection of the property in 2001 and one physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property Northbourne Road: The housing department devoted personnel time to conduct three physical inspections of the property in The police department dispatched officers to the property twice in 2004 in response to calls for service Chesterfield Avenue: The police department dispatched officers to the property in 2007 and again in 2008 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in

51 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 51 of Kentucky Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property Liberty Heights Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in Cordelia Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical inspections of the property in W. Mosher Street: The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to a call for service in N. Brice: The housing department devoted personnel time and incurred outof-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in 2007, once in 2008, twice in 2009, and once in The housing department devoted personnel time to conduct eight physical inspections of the property in 2007, nine physical inspections of the property in 2008, and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2007 and again in 2008 in response to calls for service Carrollton Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in 2008 and two physical inspections of the 51

52 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 52 of 107 property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service Arlington Avenue: The housing department devoted personnel time to conduct one physical inspection of the property in 2007 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times. The fire department dispatched a fire truck, a fire engine, a Hazmat wagon, and nine personnel to the property in response to a call for service in W. Fayette Street: The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct three physical inspections of the property in 2006, four physical inspections of the property in 2007, ten physical inspections of the property in 2008, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times Hollins Street: The housing department devoted personnel time to conduct four physical inspections of the property in 2008 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service. 52

53 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 53 of Lemmon Street: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property in 2008 and again in 2009 in response to calls for service Gilmor Street: The police department dispatched officers to the property four times in 2007 and once in 2008 in response to calls for service W. Lombard Street: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct a physical inspection of the property in Furrow Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2004, seven physical inspections of the property in 2006, and six physical inspections of the property in The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property nine times in 2004, fourteen times in 2005, seven times in 2006, and six times in 2007 in response to calls for service. The fire department dispatched a fire engine, two medical vehicles, and seven personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in N. Woodyear Street: The housing department devoted personnel time to clean the property in 2008 and again in The housing department devoted personnel time to conduct one physical inspection of the property in 2007, five physical inspections of the property 53

54 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 54 of 107 in 2008, and four physical inspections of the property in The police department dispatched officers to the property twice in 2007 and twice in 2008 in response to calls for service Robert Street: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property three times in 2007 in response to calls for service Division Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2007 and to reboard the property later in the same year. The housing department devoted personnel time to conduct three physical inspections of the property in 2006, five physical inspections of the property in 2007, nine physical inspections of the property in 2008, and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property once in 2006, six times in 2007, once in 2008, and once in 2009 in response to calls for service. The fire department dispatched a fire truck, two medical vehicles, and seven personnel to the property in response to a call for service in Wilkens Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2006, four physical inspections of the property in 2007, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property in 2007 in response to a call for service Carroll Street: The police department dispatched officers to the property in 2006 in response to a call for service. 54

55 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 55 of E. Federal Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2008 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service Arnold Court: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in 2008 and three times in The housing department devoted personnel time to conduct two physical inspections of the property in 2007, nine physical inspections of the property in 2008, nine physical inspections of the property in 2009, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property in 2009 in response to a call for service N. Wolfe Street: The housing department devoted personnel time to conduct one physical inspection of the property in 2005, one physical inspection of the property in 2006, and an additional physical inspection of the property in E. Oliver Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct one physical inspection of the property in 55

56 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 56 of , three physical inspections of the property in 2008, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property eight times. The police department dispatched officers to the property once in 2006, four times in 2007, and once in 2008 in response to calls for service. The fire department dispatched five fire engines, two fire trucks, a medical vehicle, a rescue vehicle, two Battalion Chief vehicles, a safety officer vehicle, and thirty-seven personnel to the property in response to a call for service in The fire department dispatched a fire truck and four personnel to the property in response to a call for service in The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in E. Federal Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2009 and to reboard the property an additional three times later in the same year. The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2008, six physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property four times in 2008 in response to calls for service Llewelyn Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct two physical inspections of the property in 2007, five physical inspections of the property in 2008, and three physical inspections of the 56

57 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 57 of 107 property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times. The police department dispatched officers to the property five times in 2007 in response to calls for service Preston Street: The housing department devoted personnel time to conduct two physical inspections of the property in The police department dispatched officers to the property in 2006 in response to a call for service Chester Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical inspections of the property in 2006, four physical inspections of the property in 2007, five physical inspections of the property in 2008, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times. The police department dispatched officers to the property in 2007 in response to a call for service Ashland Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in 2008 and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times N. Lakewood Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct seven physical inspections of the property 57

58 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 58 of 107 in 2008 and six physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property six times. The police department dispatched officers to the property in 2009 in response to a call for service N. Lakewood Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property in 2008 and again in The housing department devoted personnel time to conduct four physical inspections of the property in 2008 and nine physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property once in 2006, twice in 2007, and once in 2008 in response to calls for service. The fire department dispatched a fire truck and four personnel to the property in response to a call for service in N. Luzerne Avenue: The police department dispatched officers to the property in 2006 in response to a call for service Robinson Street: The police department dispatched officers to the property in 2004 in response to a call for service N. Robinson Street: The police department dispatched officers to the property once in 2006 and twice in 2008 in response to calls for service Belnord Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct five physical inspections of the property 58

59 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 59 of 107 in 2007, two physical inspections of the property in 2008, and eight physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property eight times. The police department dispatched officers to the property three times in 2003, twice in 2004, twice in 2005, eleven times in 2006, once in 2007, six times in 2008, and three times in 2009 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a third call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a fourth call for service in The fire department dispatched a fire engine, two medical vehicles, and seven personnel to the property in response to a fifth call for service in The fire department dispatched a vehicle and personnel to the property in response to a sixth call for service in The fire department dispatched a fire engine, two medical vehicles, and seven personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to another call for service in N. Linwood Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in 2007, four physical inspections of the property in 2008, and four physical inspections of the property in The housing department 59

60 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 60 of 107 incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property in 2007 in response to a call for service Lehmann Street: The housing department devoted personnel time to conduct one physical inspection of the property in 2006, two physical inspections of the property in 2008, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property multiple times in 2005, multiple times in 2006, multiple times in 2007, multiple times in 2008, multiple times in 2009, and in 2010 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in W. Lombard Street: The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property eight times in 2006 and seven times in 2007 in response to calls for service W. Pratt Street: The housing department devoted personnel time to clean the property in 2008 and again in The housing department devoted personnel time to conduct two physical inspections of the property in 2008 and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property in 2008 in response to a call for service. 60

61 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 61 of W. Caton Avenue: The housing department devoted personnel time to conduct four physical inspections of the property in 2007 and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property in 2008 in response to a call for service N. Hilton Street: The housing department devoted personnel time to clean the property once in 2006, once in 2007, twice in 2008, and twice in The housing department devoted personnel time to conduct six physical inspections of the property in 2005, fourteen physical inspections of the property in 2006, seven physical inspections of the property in 2007, eleven physical inspections of the property in 2008, five physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property ten times. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine, two medical vehicles, and eight personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in The fire department dispatched a fire engine, two medical vehicles, and seven personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to another call for service in The fire department dispatched a fire truck, two medical vehicles, and seven personnel to the property in response to a call for service in Edmondson Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in 2005 and two physical inspections of the 61

62 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 62 of 107 property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property twenty-two times in 2004 in response to calls for service. The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in Baker Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property in 2008 and again in 2009 in response to calls for service Winchester Street: The housing department devoted personnel time to conduct a physical inspection of the property in Dukeland Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2009 and to reboard the property later in the same year. The housing department devoted personnel time to conduct eight physical inspections of the property in 2008 and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times Brighton Street: The housing department devoted personnel time to conduct two physical inspections of the property in The police department dispatched officers to the property twice in 2007 in response to calls for service. 62

63 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 63 of Poplar Grove Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2008 and to reboard the property later in the same year. The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct two physical inspections of the property in 2008 and three physical inspections of the property in Longwood Street: The housing department devoted personnel time to conduct five physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property three times in 2008 and three times in 2009 in response to calls for service Normount Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property once in 2008 and twice in 2009 in response to calls for service Winchester Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2008, two physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2009 in response to a call for service. 63

64 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 64 of N. Augusta Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times N. Augusta Avenue: The housing department devoted personnel time to conduct five physical inspections of the property in 2006, two physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property twice in 2006 and four times in 2007 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in Colborne Road: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times Lyndhurst Street: The housing department devoted personnel time to conduct five physical inspections of the property in 2006 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times Stokes Drive: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct two physical inspections of the property 64

65 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 65 of 107 in 2007 and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property in 2007 in response to a call for service Woodington Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property S. Loudon Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property two times Ridgewood Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property nine times in 2008 and three times in 2009 in response to calls for service. The fire department dispatched a fire engine and four personnel to the property in response to a call for service in Bonner Road: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2007 and to reboard the property an additional four times later in the same year. The housing department devoted additional time and expense to reboard the property in 2008 and again in The housing department devoted personnel time to clean the property six times in 2007 and twice in 65

66 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 66 of The housing department devoted personnel time to conduct one physical inspection of the property in 2006, six physical inspections of the property in 2007, eight physical inspections of the property in 2008, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property seven times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property four times in 2007 in response to calls for service. The fire department dispatched five fire engines, two fire trucks, one medical vehicle, two Battalion Chief vehicles, two safety officer vehicles, one Fire Investigation Bureau vehicle, one Air Flex vehicle, and thirty-six personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to another call for service in Clifton Avenue: The police department dispatched officers to the property in 2007 in response to a call for service Fairview Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct two physical inspections of the property in 2006 and two physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property twice in 2006 and five times in 2007 in response to calls for service. 66

67 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 67 of Norfolk Avenue: The housing department devoted personnel time to conduct five physical inspections of the property in 2006 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property three times in 2006 in response to calls for service Reistertown Road: The housing department devoted personnel time to conduct five physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property three times Ruxton Avenue: The police department dispatched officers to the property in 2007 in response to a call for service Clifton Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct three physical inspections of the property in 2005 and eight physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The fire department dispatched a fire engine and four personnel to the property in response to a call for service in Thomas Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct two physical inspections of the property in

68 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 68 of 107 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property Edmondson Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2006 and to reboard the property later in the same year. The housing department devoted additional time and expense to reboard the property three times in The housing department devoted personnel time to clean the property twice in 2006, three times in 2007, five times in 2008, and three times in The housing department devoted personnel time to conduct four physical inspections of the property in 2006, nine physical inspections of the property in 2007, nine physical inspections of the property in 2008, six physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property Penhurst Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in The police department dispatched officers to the property three times in 2009 in response to calls for service McHenry Street: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct a physical inspection of the property in Arizona Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical 68

69 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 69 of 107 inspections of the property in The police department dispatched officers to the property twice in 2007 in response to calls for service Plateau Avenue: The housing department devoted personnel time to clean the property once in 2005, once in 2008, and again in The housing department devoted personnel time to conduct nine physical inspections of the property in 2008, three physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property six times Hillsdale Road: The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property Fernhill Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property twice in 2007 and again in 2008 in response to calls for service Queensgate Road: The housing department devoted personnel time to conduct a physical inspection of the property in 2007 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property Pen Lucy Road: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct four physical inspections of the property in 2008 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. 69

70 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 70 of Round Road: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property twice in 2007 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in Rayshire Road: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property N. Bouldin Street: The housing department devoted personnel time to conduct one physical inspection of the property in 2005 and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property N. Clinton Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2008 and to reboard the property later in the same year. The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct eleven physical inspections of the property in 2008 and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property multiple times in 2004, multiple times in 2005, multiple times in 2008, and multiple times in 2009 in response to calls for service. The fire department dispatched a fire engine, two 70

71 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 71 of 107 medical vehicles, and seven personnel to the property in response to a call for service in The fire department dispatched three fire trucks, five fire engines, a medical vehicle, two Battalion Chief vehicles, a safety officer vehicle, and thirty-seven personnel to the property in response to a call for service in N. East Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2007 and to reboard the property later in the same year. The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to conduct ten physical inspections of the property in 2007 and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property twice in 2007 and once in 2008 in response to calls for service Bucknell Road: The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property five times in 2007 and once in 2008 in response to calls for service Greencrest Road: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct five physical inspections of the property in 2008 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times Kavon Avenue: The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct four 71

72 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 72 of 107 physical inspections of the property in 2007, twelve physical inspections of the property in 2008, and six physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property four times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property twenty-four times in 2007, fourteen times in 2008, and twice in 2009 in response to calls for service Granite Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical inspections of the property in 2008 and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in Northern Parkway: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property Birchwood Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in Burnwood Road: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property E. Belvedere Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The 72

73 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 73 of 107 housing department devoted personnel time to clean the property three times in 2008 and three times in The housing department devoted personnel time to conduct twenty-seven physical inspections of the property in 2008, twenty physical inspections of the property in 2009, and four physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property eleven times. The police department dispatched officers to the property multiple times in 2008, multiple in 2009, and in 2010 in response to calls for service Hillen Road: The police department dispatched officers to the property in 2007 in response to a call for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in Stonewood Road: The housing department devoted personnel time to conduct a physical inspection of the property in The Alameda: The housing department devoted personnel time to conduct four physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property three times Old York Road: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2009 and to reboard the property an additional two times later in the same year. The housing department devoted personnel time to clean the property four times in The housing department devoted personnel time to conduct twenty-two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The housing department devoted personnel time to inspect and 73

74 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 74 of 107 condemn the property in The fire department dispatched two fire trucks, five fire engines, two Battalion Chief vehicles, an Air Flex vehicle, a medical vehicle, and thirty-three personnel to the property in response to a call for service in The fire department dispatched a fire truck and four personnel to the property in response to another call for service in Yorkwood Road: The housing department devoted personnel time to conduct five physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property twice in 2008 in response to calls for service Wrenwood Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times Winston Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct six physical inspections of the property in 2005, eleven physical inspections of the property in 2006, and nine physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property eight times. The police department dispatched officers to the property four times in 2005 and three times in 2006 in response to calls for service. The fire department dispatched a vehicle and personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property 74

75 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 75 of 107 in response to another call for service in The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to another call for service in Belvedere Avenue: The housing department devoted personnel time to conduct seven physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service N. Edgecombe Circle: The housing department devoted personnel time to clean the property once in 2008 and three times in The housing department devoted personnel time to conduct six physical inspections of the property in 2008 and eight physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property six times. The police department dispatched officers to the property in 2008 in response to a call for service Beehler Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct four physical inspections of the property in 2008 and two physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property four times in 2008 in response to calls for service. 75

76 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 76 of Oakmont Avenue: The housing department devoted personnel time to conduct four physical inspections of the property in 2006, five physical inspections of the property in 2007, one physical inspection of the property in 2008, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property W. Garrison Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property three times in 2007, once in 2008, and once in The housing department devoted personnel time to conduct two physical inspections of the property in 2005, one physical inspection of the property in 2006, fifteen physical inspections of the property in 2007, eight physical inspections of the property in 2008, and three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property multiple times in 2005, multiple times in 2006, multiple times in 2007, multiple times in 2008, multiple times in 2009, and multiple times in 2010 in response to calls for service. The fire department dispatched a fire engine, two medical vehicles, and eight personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to another call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in 76

77 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 77 of 107 response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in Beaufort Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in Lawnview Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct five physical inspections of the property in 2008, seven physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property sixteen times. The fire department dispatched a fire truck and four personnel to the property in response to a call for service in The fire department dispatched a fire truck and four personnel to the property in response to a call for service in Chesterfield Avenue: The police department dispatched officers to the property in 2007 in response to a call for service Brehms Lane: The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property twice in 2006 in response to calls for service Ravenwood Avenue: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct twelve physical inspections of the property in 2006, eight physical inspections of the property in 2007, four physical inspections of the property in 2008, and four physical inspections of the property in 77

78 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 78 of The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The police department dispatched officers to the property three times in 2006 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in Gorsuch Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property two times Mathews Street: The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct ten physical inspections of the property in 2008 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times Greenmount Avenue: The housing department devoted personnel time to conduct one physical inspection of the property in 2005, four physical inspections of the property in 2006, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The police department dispatched officers to the property in 2008 in response to a call for service Chilton Street: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property in 2007 in response to a call for service. 78

79 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 79 of E. 31st Street: The housing department devoted personnel time to clean the property three times in The housing department devoted personnel time to conduct two physical inspections of the property in 2006, seven physical inspections of the property in 2007, and seven physical inspections of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property six times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property twice in 2007 and three times in 2009 in response to calls for service E. 28th Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct seven physical inspections of the property in 2009 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times Barclay Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2010 and to reboard the property later in the same year. The housing department devoted personnel time to clean the property once in 2006, three times in 2008, three times in 2009, and once in The housing department devoted personnel time to conduct three physical inspections of the property in 2006, six physical inspections of the property in 2007, ten physical inspections of the property in 2008, thirteen physical inspections of the property in 2009, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner 79

80 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 80 of 107 regarding housing code violations at the property two times. The police department dispatched officers to the property once in 2007 and twice in 2009 in response to calls for service Barclay Street: The housing department devoted personnel time to clean the property once in 2006, once in 2008, and twice in The housing department devoted personnel time to conduct five physical inspections of the property in 2006, three physical inspections of the property in 2007, three physical inspections of the property in 2008, eight physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property in 2007 in response to a call for service Linden Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property. The fire department dispatched five fire engines, two fire trucks, one medical vehicle, two Battallion Chief vehicles, and thirty-two personnel to the property in response to a call for service in Linden Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2009 and to reboard the property later in the same year. The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct one physical inspection of the property in 2007, one physical inspection of the property in 2008, and nine physical inspections of the property in The housing department incurred out-of- 80

81 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 81 of 107 pocket expenses to contact the owner regarding housing code violations at the property eighteen times Linden Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in 2007, one physical inspection of the property in 2008, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property Linden Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in 2007 and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property once in 2007 and fourteen times in 2008 in response to calls for service Park Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property twice in The housing department devoted personnel time to conduct five physical inspections of the property in 2007, ten physical inspections of the property in 2008, and thirteen physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property seven times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property once in 2007, three times in 2008, and once in 2009 in response to calls for service. The fire 81

82 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 82 of 107 department dispatched a fire engine and four personnel to the property in response to a call for service in W. Cold Spring Lane: The housing department devoted personnel time to clean the property in 2007 and again in The housing department devoted personnel time to conduct two physical inspections of the property in 2007, four physical inspections of the property in 2008, and six physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property seven times Shirley Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property twice in The housing department devoted personnel time to clean the property twice in 2006, twice in 2007, once in 2008, and twice in The housing department devoted personnel time to conduct one physical inspection of the property in 2006, three physical inspections of the property in 2008, and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property N. Woodyear Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2008 and to reboard the property later in the same year. The housing department devoted additional time and expense to reboard the property twice in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct nine physical inspections of the property in 2008 and seven physical inspections of the property in 82

83 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 83 of The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The police department dispatched officers to the property twice in 2008 and five times in 2009 in response to calls for service N. Carrollton Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property once in 2007, four times in 2008, and twice in The housing department devoted personnel time to conduct three physical inspections of the property in 2006, five physical inspections of the property in 2007, fourteen physical inspections of the property in 2008, and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property N. Mount Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The fire department dispatched six fire engines, three fire trucks, two medical vehicles, a rescue vehicle, two Battalion Chief vehicles, an Air Flex vehicle, a Fire Investigation Bureau vehicle, a safety officer vehicle, and forty-eight personnel to the property in response to a call for service in

84 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 84 of W. Lanvale Street: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property twice in 2006 in response to calls for service Edmondson Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The fire department dispatched a fire engine and four personnel to the property in response to a call for service in N. Carrollton Avenue: The housing department devoted personnel time to conduct one physical inspection of the property in 2006, five physical inspections of the property in 2007, two physical inspections of the property in 2008, and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property once in 2006, once in 2007, twice in 2008, and once in 2009 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to another call for service in S. Calhoun Street: The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times Ramsay Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The 84

85 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 85 of 107 housing department devoted personnel time to conduct four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property in 2009 in response to a call for service Druid Hill Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted additional time and expense to reboard the property in The housing department devoted personnel time to clean the property once in 2007, twice in 2008, and once in The housing department devoted personnel time to conduct two physical inspections of the property in 2006, four physical inspections of the property in 2007, five physical inspections of the property in 2008, five physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property four times in 2006, fourteen times in 2007, and once in 2008 in response to calls for service. The fire department dispatched a fire engine, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a vehicle and personnel to the property in response to another call for service in Carroll Street: The police department dispatched officers to the property in 2009 in response to a call for service Cleveland Street: The housing department devoted personnel time to conduct a physical inspection of the property in The police department dispatched officers to the property in 2007 and again in 2008 in response to calls for service. 85

86 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 86 of W. Cross Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property once in 2006, once in 2007, and twice in The housing department devoted personnel time to conduct seven physical inspections of the property in 2006, five physical inspections of the property in 2007, eight physical inspections of the property in 2008, and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property nine times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property. The police department dispatched officers to the property four times in 2006 and once in 2007 in response to calls for service Aisquith Street: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct four physical inspections of the property in 2007, one physical inspection of the property in 2008, and an additional physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property nine times in 2008 in response to calls for service Holbrook Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in 2008, once in 2009, and once in The housing department devoted personnel time to conduct four physical inspections of the property in 2008, six physical inspections of the property in 2009, and an 86

87 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 87 of 107 additional physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property four times in 2008 in response to calls for service. The fire department dispatched a fire truck, a fire engine, three medical vehicles, and thirteen personnel to the property in response to a call for service in Rutland Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2006 and to reboard the property an additional two times later in the same year. The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct five physical inspections of the property in 2006, four physical inspections of the property in 2007, three physical inspections of the property in 2008, and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property three times Rutland Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property in 2006 and again in The housing department devoted personnel time to conduct four physical inspections of the property in 2006, three physical inspections of the property in 2007, six physical inspections of the property in 2008, and four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times N. Chapel: The housing department devoted personnel time to conduct a physical inspection of the property in

88 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 88 of E. Federal Street: The housing department devoted personnel time to clean the property in 2007 and again in The housing department devoted personnel time to conduct two physical inspections of the property in 2006, two physical inspections of the property in 2007, three physical inspections of the property in 2008, three physical inspections of the property in 2009, and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property twice in 2006 and twice in 2008 in response to calls for service N. Luzerne Avenue: The police department dispatched officers to the property twice in 2009 in response to calls for service E. Monument Avenue: The housing department devoted personnel time to conduct four physical inspections of the property in 2007 and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The police department dispatched officers to the property twice in 2007, twice in 2008, and twice in 2010 in response to calls for service N. Luzerne Avenue: The housing department devoted personnel time to conduct two physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property three times in 2007, twice in 2008, and twice in 2009 in response to calls for service. The fire department dispatched a fire truck, two medical vehicles, and seven personnel to the property in response to a call for service in

89 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 89 of N. Milton Avenue: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property N. Milton Avenue: The housing department devoted personnel time to conduct three physical inspections of the property in 2007 and two physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property four times. The police department dispatched officers to the property three times in 2008 in response to calls for service N. Rose Street: The police department dispatched officers to the property in 2008 and again in 2009 in response to calls for service N. Decker Avenue: The housing department devoted personnel time to clean the property in 2008 and again in The housing department devoted personnel time to conduct one physical inspection of the property in 2007, four physical inspections of the property in 2008, and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property two times in 2008 in response to calls for service N. Smallwood Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to clean the property twice in 2006, once in 2007, once in 2008, and once in The housing department devoted personnel time to conduct seven physical inspections of the property in 2006, four physical inspections of the property in 2007, four physical inspections of the property in 2008, and six physical inspections of the 89

90 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 90 of 107 property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The housing department devoted personnel time to preparing for and/or taking legal action regarding housing code violations at the property Oakford Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct a physical inspection of the property in 2008 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2009 in response to a call for service Walbrook Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service Tioga Parkway: The housing department devoted personnel time to conduct a physical inspection of the property in The housing department incurred out-ofpocket expenses to contact the owner regarding housing code violations at the property Homestead Street: The housing department devoted personnel time to clean the property in The housing department devoted personnel time to conduct a 90

91 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 91 of 107 physical inspection of the property in 2007 and an additional physical inspection of the property in Erdman Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct three physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property Ravenwood Avenue: The housing department devoted personnel time to conduct five physical inspections of the property in 2007 and five physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times Lewiston Avenue: The police department dispatched officers to the property in 2010 in response to a call for service Wilern Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct four physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property two times. The police department dispatched officers to the property eight times in 2008 and three times in 2009 in response to calls for service Richwood Avenue: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in 2009 and to reboard the property an additional two times later in the same year. The housing department 91

92 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 92 of 107 devoted personnel time to clean the property in The housing department devoted personnel time to conduct two physical inspections of the property in 2008 and nine physical inspections of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property five times. The police department dispatched officers to the property four times in 2008 and twice in 2009 in response to calls for service Shannon Drive: The housing department devoted personnel time to conduct two physical inspections of the property in The housing department incurred outof-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2005 in response to a call for service. The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in Kenyon Avenue: The police department dispatched officers to the property eight times in 2008 in response to calls for service. The fire department dispatched a fire truck, a medical vehicle, and six personnel to the property in response to a call for service in The fire department dispatched a fire engine and four personnel to the property in response to another call for service in Marx Avenue: The police department dispatched officers to the property two times in 2009 in response to calls for service McElderry Street: The housing department devoted personnel time to clean the property twice in The housing department devoted personnel time to conduct one physical inspection of the property in 2007 and eight physical inspections of the property in 92

93 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 93 of The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property seven times N. Clinton Street: The housing department devoted personnel time and incurred out-of-pocket expenses to purchase materials to board the property in The housing department devoted personnel time to conduct three physical inspections of the property in 2008 and an additional physical inspection of the property in The housing department incurred out-of-pocket expenses to contact the owner regarding housing code violations at the property. The police department dispatched officers to the property in 2008 in response to a call for service There are many additional Wells Fargo foreclosure properties that are currently vacant because of reverse redlining for which the City has not yet identified costs for providing increased municipal services. There are or will soon be housing code violations at these properties. These violations will require the City to devote personnel time and to incur out-ofpocket costs. The City will also need to send fire and police personnel and vehicles to address public health and safety threats at these properties. The City may also identify certain costs it has already incurred at these properties during the course of discovery. The properties are: 1619 N. Ashburton Street 1934 Lexington Street 1643 N. Fulton Avenue 1557 N. Gilmor Street 1351 N. Carey Street 1213 W. Mulberry Street 1511 W. Lexington Street 39 S. Fulton Avenue 1934 Cumberland Street 512 N. Paca Street 331 E. North Avenue 1334 Aisquith Street 209 N. Rose Street 622 Allendale Street 93

94 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 94 of N. Hilton Street 3911 Flowerton Road 3706 Winterbourne Road 2115 Braddish Avenue 3116 Callaway Avenue 2203 N. Pulaski Street 2614 Rosewood Avenue 2833 Oakford Avenue 3030 Oakford Avenue 1666 Shadyside Road 902 E. 41st Street 3202 Lawnview Avenue 3618 Glengyle Avenue 3102 Oakford Avenue 3021 Rosalind Avenue 5540 Midwood Avenue 4250 Shamrock Avenue 4238 Sheldon Avenue 613 Winans Way 3407 Juneway Street 296. There are also many Wells Fargo foreclosure properties that were previously vacant because of reverse redlining for which the City has not yet identified costs for providing increased municipal services. The City may identify such costs during discovery. There may be housing code violations at these properties in the future that will require the City to devote personnel time and to incur out-of-pocket costs. The City may also need to send fire and police personnel and vehicles to address public health and safety threats at these properties in the future. The properties are: 758 Deaconhill Court 1530 N. Fulton Avenue 2719 W. Baltimore Street 234 S. Monastery Avenue 3623 Rosedale Road 2308 Oswego Avenue 3904 Tivoly Avenue 2928 Clifton Park Terrace 6504 Brighton Avenue 3200 W. Roger Drive 94

95 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 95 of Laurel Avenue 1133 E. Northern Parkway 5810 Waycross Road 5302 Brabant Road 4404 Finney Avenue 1536 Roundhill Road 2622 Boone Street 5017 Woodlands Glen Road 2724 Uhler Avenue 402 Croydon Road 1024 Radnor Avenue 1203 Northern Parkway 2816 Roselawn Avenue 3201 Kentucky Avenue 4357 Old Frederick Road 3819 Patapsco Avenue 5511 Wesley Avenue 2014 Penrose Avenue 2106 Whittier Avenue 2521 Hoffman Street 3602 W. Forest Park Avenue 3817 Clifton Avenue 1012 N. Rosedale Street 1729 Ashburton Street 40 Bentalou Street 220 Patterson Park Avenue 536 Hurley Avenue 1746 Llewelyn Avenue 1007 Central Avenue 1115 Ward Street 1309 Hollins Street 1227 Lafayette Avenue 2917 Rock Rose Avenue 2745 The Alameda 1520 E. 28th Street 297. Declarations from Baltimore residents who live in neighboring properties further document and illustrate the injuries and costs incurred by Baltimore at vacant Wells Fargo foreclosure properties. Genevieve Matthews, Keisha Brooks and Mike England, Mishawn and Nona Evans, Richard and Stephen Faison, Lisa Porter, Bridget Ross, James Mears, and Sheena 95

96 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 96 of 107 Sykes all live next door or a few doors down from Wells Fargo foreclosure properties that are or until recently were vacant and that are in neighborhoods that are over 70% African-American (and all but two in neighborhoods that are over 95% African-American). See Attach. E ( Matthews Decl. ); Attach. F ( Brooks Decl. ); Attach. G ( England Decl. ); Attach. H ( M. Evans Decl. ); Attach. I ( N. Evans Decl. ); Attach. J ( R. Faison Decl. ); Attach. K ( S. Faison Decl. ); Attach. L ( Porter Decl. ); Attach. M ( Ross Decl. ); Attach. N ( Mears Decl. ); Attach. O ( Sykes Decl. ); Attach. P ( Goldstein Decl. ) 15; Attach. Q ( Goldstein Supp. Decl. ) 15. This includes costs caused by crime, squatting, loitering, trash, burst pipes, rat infestation, and other problems that arise at vacant properties and are the direct and foreseeable result of vacancies Genevieve Matthews lives next to the Wells Fargo foreclosure property at 3803 Bonner Road. Matthews Decl. 3. The property has been vacant for more than a year and has been occupied by squatters repeatedly. Id Matthews explains that the City boards the property up, but new squatters break in and the City has to come back and board it again. Id. 5. Squatters recently caused a fire at the vacant property. Id. 6. City firefighters had to come to put the fire out. Id. Matthews has lived on the same block for fifty years and always thought of it as safe and pleasant until the problems began with the Wells Fargo foreclosure property. Id. 8. Now she is scared because she lives next door to a property that is occupied by squatters who could start another fire in the middle of the night. Id. 7. The problems identified by Matthews at 3803 Bonner Road are confirmed by the Acting Director of the Baltimore Housing Code Enforcement Legal Section ( Baltimore Code Enforcement ). See Attach. R ( Hessler Decl. ) 17(b); Attach. S ( Hessler Supp. Decl. ) 8(a). 96

97 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 97 of Keisha Brooks and Mike England live next door to another vacant Wells Fargo foreclosure property that has been boarded by the City. Brooks Decl. 3, 12; England Decl. 3, 12. Squatters kept a pit bull in the yard until it was taken away by the City. Brooks Decl. 8; England Decl. 8. Squatters have also held pit bull fights at the property. Brooks Decl. 9; England Decl. 9. The squatters smashed one of Brooks and England s front windows and they have had to call the police on several occasions about the vacant property. Brooks Decl ; England Decl Trash has been piled high at the properties since it became vacant and it has rat and cockroach problems. Brooks Decl. 4-6; England Decl Two children had to be taken to the hospital as a result; a rat bit one and a cockroach became lodged in another s ear. Brooks Decl. 4-5; England Decl Brooks and England have decided to move to a different home in part because of problems associated with the vacant property. Brooks Decl. 13; England Decl Mishawn and Nona Evans live two doors from the vacant Wells Fargo foreclosure property at 3726 Beehler Ave. M. Evans Decl. 3; N. Evans Decl. 3. It has had squatters and been boarded up by the City, but the squatters remove the boards and return. M. Evans Decl. 4-5; N. Evans Decl. 4. Mishawn has called the police several times about the property. M. Evans Decl. 5. One time the police came and recovered drugs, drug paraphernalia, and cell phones. Id. 4. Mishawn believes some of the squatters are drug dealers. Id. The vacant property has also created trash and rat problems. M. Evans Decl. 7; N. Evans Decl. 5. Nona called the City about the rats and the City put down rat poison, but the rats have returned. N. Evans Decl. 5. She had cement work done in an unsuccessful effort to keep the rats away. M. Evans Decl. 7; N. Evans Decl. 5. Nona tried to sell the house but was unable to get a good 97

98 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 98 of 107 price; the Evanses believe that the vacant property has harmed the value of their home. M. Evans Decl. 9; N. Evans Decl Richard Faison has had to call the police several times because of loiterers who hang out and drink at the vacant Wells Fargo foreclosure property next door to him, 2520 Shirley Avenue, which was recently boarded. R. Faison Decl. 3, 5. He also had to call the City to turn off the water and cap a pipe at the vacant house when the pipe burst. Id. 7. Richard and Stephen Faison both confirm that the vacant house is in serious disrepair and that it has created a rat infestation because loiterers and squatters let trash accumulate. R. Faison Decl. 4, 6, 8, 9; S. Faison Decl They cannot even hang clothing to dry in their backyard because loiterers steal it. S. Faison Decl. 8. Stephen no longer feels safe when he goes to work early in the morning because of strangers who loiter and sleep at the vacant house next to his. S. Faison Decl. 5. The problems identified by the Faisons at 2520 Shirley Avenue are confirmed by the Acting Director of Baltimore Code Enforcement. See Hessler Supp. Decl. 8(c) The vacant Wells Fargo foreclosure property at 801 Arnold Court is located a few houses from Lisa Porter s home and is also in disrepair. Porter Decl. 4, 6. Trash is scattered in the yard, the grass is not cut, and rats have become an increasing problem since it became vacant. Id Bridget Ross and her neighbors had to call the City to come and board up the vacant Wells Fargo foreclosure property at 500 North Clinton, which is two doors down from her home. Ross Decl. 5. Vagrants stayed at the house until it was boarded. Id. 3. It is in disrepair, with a broken door and broken windows and large amounts of trash in the yard, and has also become a source of many rats. Id. 3, 6, 7. People have stolen plumbing from the vacant property. Id. 4. Ross has been trying unsuccessfully to sell her house for two years but 98

99 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 99 of 107 the nearby vacant Wells Fargo foreclosure property has made her home lose value and has made it less desirable to potential purchasers. Id The Wells Fargo foreclosure property at 2918 Winchester Street is next door to James Mears s home and has been vacant for at least two years. Mears Decl. 3. Squatters and vandals are regularly at the property drinking and using drugs. Id Mears has had to call the police because of the illicit activities at the property. Id. 5. The vacant property has caused rat, mice, and water problems at his home. Id Plumbing has been stolen from the property. Id. 4. The condition of the property negatively affects the neighborhood, and Mears and his neighbors have discussed the problems caused by the vacant property at community meetings. Id Sheena Sykes lives next to another Wells Fargo foreclosure property at 2014 Penrose Avenue that was vacant. Sykes Decl The property has been inhabited by squatters and the City had to board it and clean up the trash and debris left by the squatters. Id. 4-6, 9. The City also had to send the police because of the squatters. Id. 6. The City has also had to come to take care of mice that spread from the vacant property to Sykes s home. Id. 7. B. Baltimore Has Been Injured By a Reduction in Property Tax Revenues from Specific Neighborhoods Where Wells Fargo Foreclosures Constitute a Large Percentage of All Foreclosures 306. In compliance with the Court s January 6, 2010 ruling on Wells Fargo s motion to dismiss, Baltimore only seeks damages in this Second Amended Complaint for lost property tax revenues based on properties located in limited areas within certain neighborhoods ( subneighborhoods ). These sub-neighborhoods are uniformly sized areas that, in most parts of the City, are approximately equal to two blocks by two blocks. Wells Fargo foreclosures caused by 99

100 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 100 of 107 reverse redlining in the sub-neighborhoods constitute at least one-third of all foreclosures. The Wells Fargo foreclosures in these sub-neighborhoods are so disproportionately concentrated that they have a significant and deleterious effect on the property values of properties in close proximity. Baltimore does not seek damages for lost property tax revenues from properties located outside of these sub-neighborhoods The sub-neighborhoods where Wells Fargo foreclosures constitute at least onethird of all foreclosures are clustered in the following African-American neighborhoods, among others: Ashburton, Cylburn, Original Northwood, Reservoir Hill, and Waltherson. These are neighborhoods that have long been stable middle- and working-class African-American neighborhoods, and/or have become significantly stronger in the past decade. They are not neighborhoods characterized by the kinds of problems identified in the ruling on the motion to dismiss the First Amended Complaint. See Op. (Jan. 6, 2010) at 4-5. Baltimore s property tax damages caused by Wells Fargo are especially significant and evident in these areas where the affected sub-neighborhoods are clustered Wells Fargo foreclosures constitute at least one-third of all foreclosures in the following sub-neighborhoods. The sub-neighborhoods are, approximately, the two-block areas centered around: the 3700 block of Chestmont Avenue the 1200 block of Northview Road the 1400 block of E. Lanvale Sreet the 1900 block of Jefferson Street 5 As expressly stated in paragraph 95 above, Plaintiffs have limited their claims for purposes of this Second Amended Complaint in compliance with the Court s ruling of January 6, However, and solely to the extent it might be a technical requirement in the Fourth Circuit in order for Baltimore to preserve fully its right to appeal the Court s order dismissing the First Amended Complaint following a potential adverse final order or jury ruling in this matter, see Young v. City of Mount Ranier, 238 F.3d 567, 573 n.4 (4th Cir. 2001), the City realleges that it has suffered a quantifiable and compensatory tax revenue loss from every Wells Fargo foreclosure caused by reverse redlining in African-American neighborhoods and on African-American borrowers. 100

101 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 101 of 107 the 3400 block of Dennlyn Road the 5300 block of Brabant Road the 4000 block of Woodlea Avenue the 4000 block of Chesterfield Avenue the 5000 block of Woodlands Glen Road the 6100 block of Frankford Avenue the 1500 block of Stonewood Road the 2700 block of Cylburn Avenue the 3600 block of Brehms Lane the 4600 block of Moravia Road the 5600 block of Bell Avenue the 6300 block of McClean Boulevard the 1200 block of Southview Road the 2400 block of W. Garrison Avenue the 4800 block of Laurel Avenue the 6500 block of Brighton Avenue the 2400 block of Linden Avenue the 1700 block of E. Oliver Street the 200 block of South East Avenue the 3400 block of Cedardale Road the 3500 block of Plateau Avenue the 5300 block of Muth Avenue the 3300 block of N. Hilton Street the 2200 block of E. Preston Street the 500 block of E. 23rd Street the 2600 block of Saint Paul Street the 500 block of N. Carrollton Avenue the 200 block of E. Medwick Garth the 2600 block of Maisel Street the 3000 block of Ascension Street the 4800 block of Melbourne Road the 800 block of Glen Allen Drive the 3100 block of Strickland Street 309. These sub-neighborhoods have been identified by reviewing all foreclosures in the City, regardless of whether they involved a Wells Fargo loan. Houses outside of these subneighborhoods are excluded from Baltimore s claim for damages based on lost property tax revenues. 101

102 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 102 of Routinely maintained property tax and other data allow Baltimore to calculate precisely the property tax revenues it has lost as a direct result of notices of foreclosure on particular Wells Fargo properties in the sub-neighborhoods listed above. Using a wellestablished statistical regression technique that focuses on effects on neighboring properties, the City can isolate, and in significant measure has isolated, the lost property value attributable to each individual Wells Fargo foreclosure in these sub-neighborhoods from losses attributable to other causes. This technique, known as hedonic regression when applied to housing markets, analyzes housing transactions and determines the contribution of different factors to a property s value. The number of foreclosures in close proximity to a property is one of the factors that hedonic analysis examines. See Attach. T Notices of foreclosures on Wells Fargo loans in the sub-neighborhoods identified above can be, and in significant measure have been, analyzed through hedonic regression to calculate the resulting loss in the assessed property values of nearby homes. This loss is distinguishable from any loss attributable to non-wells Fargo foreclosures or other causes. 6 The loss in assessed property value in the sub-neighborhoods caused by Wells Fargo s unlawful acts and consequent foreclosures can then be, and in significant measure has been, used to calculate the City s corresponding loss in property tax revenues Application of hedonic regression to data regularly maintained by Baltimore permits precise quantification of the injury to the City caused by Defendants discriminatory 6 Using hedonic regression, a study published by the Fannie Mae Foundation determined that each foreclosure in Chicago is responsible for an average decline of approximately 1.1% in the value of each single family home within an eighth of a mile. See Dan Immergluck & Geoff Smith, The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values, 17 Housing Policy Debate 57 (2006) at 69. Similarly, a study of abandoned homes in Philadelphia found that each home within 150 feet of an abandoned home declined in value by an average of $7,627; homes within 150 to 299 feet declined in value by $6,810; and homes within 300 to 449 feet declined in value by $3,542. Anne B. Shlay & Gordon Whitman, Research for Democracy: Linking Community Organizing and Research to Leverage Blight Policy, at 21 (2004). 102

103 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 103 of 107 lending practices and resulting foreclosures in sub-neighborhoods where Wells Fargo foreclosures constitute at least one-third of all foreclosures This lost property tax revenue is a direct result of Defendants discriminatory lending practices and of the Wells Fargo foreclosures that are the direct result of those practices. * * * 314. Defendants actions set forth herein constitute a pattern or practice of discriminatory lending and a continuing violation of federal law. Unless enjoined, Wells Fargo will continue to engage in the unlawful pattern or practice described above Baltimore has been, and continues to be, adversely affected by the acts, policies, and practices of Defendants, their employees, and/or their agents The extent of Baltimore s injuries will increase unless and until Wells Fargo ceases to discriminate against African Americans and borrowers in majority African-American neighborhoods 317. Defendants unlawful actions described above were, and are, intentional and willful, and/or have been, and are, implemented with callous and reckless disregard for the Baltimore s federally protected rights. 103

104 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 104 of 107 CAUSE OF ACTION (Federal Fair Housing Act) 318. Plaintiff repeats and incorporates by reference all allegations contained in Paragraphs 1 through 317 as if fully set forth herein Defendants acts, policies, and practices as documented above and discussed in particular by Jacobson and Paschal constitute intentional discrimination on the basis of race. Defendants have intentionally targeted residents of predominantly African-American neighborhoods in Baltimore for different treatment than residents of predominantly white neighborhoods in Baltimore with respect to mortgage lending. Defendants have intentionally targeted residents of these neighborhoods for subprime loans without regard to their credit qualifications and without regard to whether they qualify for more advantageous loans, including prime loans. Defendants have intentionally targeted residents of these neighborhoods for increased interest rates, points, and fees, and for other disadvantageous loan terms including but not limited to prepayment penalties. Defendants have intentionally targeted residents of these neighborhoods for unfair and deceptive lending practices in connection with marketing and underwriting subprime mortgage loans Defendants acts, policies, and practices have had an adverse and disproportionate impact on African Americans and residents of predominantly African-American neighborhoods in Baltimore as compared to similarly situated whites and residents of predominantly white neighborhoods in Baltimore. This adverse and disproportionate impact is the direct result of Defendants policies of giving substantial discretion to loan officers and others responsible for mortgage lending; giving loan officers and others responsible for mortgage lending large financial incentives to give borrowers loans that are costlier than better loans for which they qualify; otherwise encouraging and directing loan officers and others responsible for mortgage 104

105 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 105 of 107 lending to steer people into subprime loans without regard for whether they qualify for better loans, including but not limited to prime loans; increasing the interest rate on loans of $75,000 or less and decreasing the interest rate on loans of $150,000 or more; and setting interest rate caps. See, e.g., Miller v. Countrywide Bank, N.A., 571 F. Supp. 251 (D. Mass. 2008). These policies have caused African Americans and residents of predominantly African-American neighborhoods in Baltimore to receive mortgage loans from Wells Fargo that have materially less favorable terms than mortgage loans given by Wells Fargo to similarly situated whites and residents of predominantly white neighborhoods in Baltimore, and that are materially more likely to result in foreclosure Defendants acts, policies, and practices constitute reverse redlining and violate the Fair Housing Act, as amended, 42 U.S.C and 3605: (a) Defendants acts, policies, and practices have made and continue to make housing unavailable on the basis of race and/or color, in violation of 42 U.S.C. 3604(a); (b) Defendants acts, policies, and practices have provided and continue to provide different terms, conditions, and privileges of sale of housing, as well as different services and facilities in connection therewith, on the basis of race and/or color, in violation of 42 U.S.C. 3604(b); (c) Defendants published policies and statements have expressed and continue to express a preference on the basis of race and/or color, in violation of 42 U.S.C. 3604(c); and (d) Defendants acts, policies, and practices have provided and continue to provide different terms, conditions and privileges on the basis of race and/or color in 105

106 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 106 of 107 connection with the making of residential real estate-related transactions, in violation of 42 U.S.C DEMAND FOR JURY TRIAL 322. Pursuant to Fed. R. Civ. P. 38(b), Plaintiff demands a trial by jury on all issues triable as of right. PRAYER FOR RELIEF WHEREFORE, Plaintiff respectfully prays that the Court grant it the following relief: (1) enter a declaratory judgment that the foregoing acts, policies, and practices of Defendants violate 42 U.S.C and 3605; (2) enter a permanent injunction enjoining Defendants and their directors, officers, agents and employees from continuing to publish, implement, and enforce the illegal, discriminatory conduct described herein and directing Defendants and their directors, officers, agents and employees to take all affirmative steps necessary to remedy the effects of the illegal, discriminatory conduct described herein and to prevent additional instances of such conduct or similar conduct from occurring in the future; (3) award compensatory damages to Plaintiff in an amount to be determined by the jury that would fully compensate Plaintiff for its injuries caused by the conduct of Defendants alleged herein; (4) award punitive damages to Plaintiff in an amount to be determined by the jury that would punish Defendants for the willful, wanton and reckless conduct alleged herein and that would effectively deter similar conduct in the future; 106

107 Case 1:08-cv JFM Document 153 Filed 04/07/10 Page 107 of 107 (5) award Plaintiff its reasonable attorneys fees and costs pursuant to 42 U.S.C. 3613(c)(2); and (6) order such other relief as this Court deems just and equitable. April 7, 2010 George Nilson, City Solicitor, MD Fed. Bar No Suzanne Sangree, Chief Solicitor, MD Fed. Bar No City Hall 100 N. Holliday Street Baltimore, Maryland (410) (410) (fax) Attorneys for Plaintiff /s/ John P. Relman John P. Relman, MD Fed Bar No Bradley H. Blower, MD Fed. Bar No Glenn Schlactus, Pro Hac Vice RELMAN, DANE & COLFAX, PLLC th Street NW, Suite 600 Washington, DC (202) (202) (fax) Special Assistant City Solicitors and Attorneys for Plaintiff 107

108 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 14 ATTACHMENT A

109 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 14

110 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 14

111 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 14

112 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 14

113 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 14

114 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 14

115 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 14

116 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 14

117 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 14

118 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 14

119 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 14

120 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 14

121 Case 1:08-cv JFM Document Filed 04/07/10 Page 14 of 14

122 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 16 ATTACHMENT B

123 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 16

124 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 16

125 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 16

126 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 16

127 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 16

128 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 16

129 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 16

130 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 16

131 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 16

132 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 16

133 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 16

134 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 16

135 Case 1:08-cv JFM Document Filed 04/07/10 Page 14 of 16

136 Case 1:08-cv JFM Document Filed 04/07/10 Page 15 of 16

137 Case 1:08-cv JFM Document Filed 04/07/10 Page 16 of 16

138 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 6 ATTACHMENT C

139 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 6

140 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 6

141 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 6

142 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 6

143 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 6

144 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 2 ATTACHMENT D

145 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 2 ufiore$re -rttlif ATIl,E l#.8/ slt8fxrilre ft{te f,ter'r r.5 r;ry* Sert Effi fff.f1i - 7t.lU, Losr f-rqrap:rf6.frrnqylrg* PcmHc* FEi*lfti*, st&/]i0&'l'?.q,.,,am ry w ar tjnae st tm ry tem 4Wt@ zr1',rf!'4'f'& rtil ef,,''f4 'e,'&1 ts I n:s fg,lff.t 1,rg!.. ).!l*f l*!fl ico tftjtrab M!@ SHaEr TIFB rtrff lilil 4!*EE '.efirytnai cttprtafe rld FioalttBsdfc..6ffrdraF*{-1{dftrlrrrFqEh btrtg.adldi.raoqb*crb#flercsrfr It{f tr#$qf +'lk*nt*(-9ei $ee fulla5deehcfutru 8 *r cqinqnmnt{tsiit** C6 vi' ltd{, ; w AN ehfl. ntd*f,ftsf*lqrff -<l.06,r vii+lh(ritrjtnraxus - F.lfi.*,+nur DHOTt PlaCrn nle!!g' tiltoc!d6dttltdq' il.oom logttt{ a+xtti, rqbjorffi -triliriiinlre_,ld5.fa.. Lotut r&r{tel9l iatlthe &*rfhrilt$irii' f{it ooq rmr,'si'qiitrrt&ni g-l3rbgnat5yltrft I;i!&E*TE ty.;iaai, s!*t,tl dtl9! d?f.' w* t6r. s ili, tg 7',,.rl 4r r.ant Fi g* tfi ft ryg 'r 6i 4 r{b DEq lltffrr '4 r(rt!t E did*.ti4jt!?tjl:f qtl{.q. IoE rlltffi rg.c!lfiraii tg's!t s B-' ]--F d,l. { l q'{ r 1 F {[,'t y.rt clhlrd rlne la Ei*.qst ;ffiffii *$*ry!o icta sfy.ir Irar,il* riarl qr(s*-ffiit is8tlr :E aels <1iffi.ff eo jr*.ird.rd w, r4. 9'*.ry li;irr ;(tiii. irtei rp6!16 7,q 32tD 'I.'a!+a Gt.ro?rq ai!9.!{f 'ls E;r{s t3'6 tr.i.ltrct 740. r.16 rs {4t! td a* ta /14 clt'' $4r. a:ge s.f J,E r.it tq aeh,& it2ta 6:tPf.t{rr c&5 z,r2! llrr idf!, (rr i\iys '.at 1e0 1& G50 '.N trt29 7-!a 7M te lfirt il i* --!!o em ts 7-q iryg * r.tr' flrf 4!F t1+. x f F?3 &Eo 3$d *m r.$s rf! HI,i.!ir t!f.,re tss l}l} E acr.!&31 '# r4 w E6 &ir. r;li*r. r.z+ fib r{o M lta rr* r t {pt.s ar*i irit,!ei. 'gc s*. tttr:.tot. n. 'b*1 EI tliti i* 8* 7V1.. q?t t d a d f, f f, f f i f f i a P w. + q. r y w sjri,j ais lrrr tjt! t3lt: em.s 1p llq llr a6b i,si6 a?ii EirE ts il'' }Jin Yts i'{9q ale?;a. 2;m *tt *p te '* rix ii* ti!* id sf 4.t :ry IIE.fl i.fa W r5e 7,49?+p rirr 6rEi taa!?ies qgh t#'fif iilgi,88,e E, an',. alla 7.lD 750 tl''! a&. rft.am {d.d dx. l m q +. s. N :at6 AlPt?,ta Ts t,'ls.tg! L&I 'tt.t l.&itt '41&,!.!r! ttt?ar s:sl tllg5' 'te Rfr :lg lfl &R. g o t 4 r y 5 r y! E t.ib Yaao tqo es& +gso '28 rf,o a$o. L?Eo 5@ '{d h Lab ts: 3"ir a m : 9 F F o l 4 i r y ib ri*o rm.ln 5;tri I,Er i.lr' $di {dti5 q{5.-. ri*. hh irh r.n $ttr ttt :regt lleg allt es luiit *i*io tida r'a ir*ro EAEgIb r s 1J2q,*Gp.igio' +s.fld.jp '^}? drl.*r90.- '-Fz 'ieee FlddSy'i'b oy rc., h(lettaaft t]'. 8E r,r'r -ffi* H iry B +t w_.ta J;.U 5g G;r6 te r,1f. At6 t?-!0. llfo: qt$ 713. rrroq aa$ S4r 7d 7g a,,b 3r.' &g 7,15 "E a! 5 f,e 7.rt. tigq I50! rq & elp E!te, FO [.:'s cr!9 tte Irb {,tb. IFG B s.j trie tl'r lq6 48'l5 Ag3 71'5 Tfi t!rbt d a+s tlp Zp tsfi d''r rt!. 74?! fir! (!t *d!4 qy rfs. c* lg. rs *s0 gtdi ri6r' 5fi0 ilrtc rr4 l 'r 7s atfo 6E rfr itfts c8tt,:8,!:'9 ' z,st +o0 Al'! r.tl.d rs :!qq iiq0 lh r'il 'n atu w o. r y G f f l r. * Grrs cce,.6 74 gr4.iie8!,750 r4!f r{l0.{qf!!*! 7.q rtq l(f! {& f!$ &r2[ dg?t?aoo.lgs.un- 'it$ i*lo a* r* a-c a:i r*. -tp i3o ir.rd. r *ro 14- tjs '!ls 7;.&.rEl l3t eal'rr :r&.,,815 'f''5 ardi ;}Jtl rnzr tya rc* ilf.'?.!@ rfo C{o +ru q' 'teg {Jra t-e l ;.8 ta9 J:To flp &' :7tlr,,t'ir +8 iiia, N"E. lirtt.li$7:l {4{ Sll; tjq i,rrs. * d*.e.itu 7_-!* E: a6 g' G6' trlb llif l.?s Erdq rd$ : r'4 +oq rl5o qe EF 113 r rs i.ta lb l,fd!.?le clt ait. lnb, rd5 ti.ea net.* ror*.gs lt tf?h!#} +tqf TEF.Ur!,ry sttt refti $,m fi.ft?tb aro, rair$: $!'.1p lf-sa?r00 t&!r rl9 z i'il,,rfii 0# Gi, ils* cs qp 'e&. srr 1..ttl teoo to 7.t0 a.60!!ct 7:r1 7: tnt EOt t.!' ! 49 7s.q$S (d ilts [{2r, I&*.Cta d,ka r:f:t rtu tj uffi 7r!o' Fe,Ig9 7.d,b r.5f &qo. &lt' 7..{t e38' lee: R?6o t4! Lt$j SIIU am. th id, d6 99 "te 3t1' rrso rrr9 t4!p: {qc 74-t tsf. &q!i 7;6 te ali' lltr 71dr r,!b 3ae '. jlir r,xn azp lrts {tir r,- ;r* i* 'r<* q-r.d r.ee ry{ wt: t:f?i!g 8tr0!: ljf 7;w i& l?{!#f?qa r4.tq!flt.s.!grt 7S l'& atr rffi tal' ara rw a '[: db 6b.b 6q ro. Js.;+r qp, 76 -fr6 $f tilt 1F?tS dze ti.lf Um re 'rnb t# 7t 5 lrrrt q{t.rsjs ar6: ta 1@ q x?s. 7f,S. dxr titt 7s!p0!# id eab. rirno s.@ $6 rd Gs rtah.6; lrlp w,tn[ s } ti. t3e5 +rai rl&r qrf l8l' o'*r. 'rhd.!s.t td $& * w F ' a w t w.b{r raf &?5 rd& ah 1.cliro iit.lb iiilo Oh rifi {<h rrd :st4.] l 'lle 10t50 1lt?iq Ltr?,fitro :lr P lrjte r'f:*^i {.i li,6 re$s wn Oi*I o;2i r *&r:lir$f.*{!* lrrfi..c?5 wlxr trd.+tep8i; rl a fi e BB, irasira!'it1ffiwnrne.iairx&rotquniif,i*i44t4+lf#lirtriaplrn#rul?$frpil*.@ -r'#r('

146 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT E

147 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

148 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

149 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 4 ATTACHMENT F

150 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 4

151 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 4

152 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 4

153 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 4 ATTACHMENT G

154 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 4

155 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 4

156 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 4

157 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT H

158 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

159 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

160 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT I

161 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

162 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

163 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 4 ATTACHMENT J

164 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 4

165 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 4

166 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 4

167 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 4 ATTACHMENT K

168 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 4

169 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 4

170 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 4

171 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT L

172 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

173 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

174 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 4 ATTACHMENT M

175 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 4

176 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 4

177 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 4

178 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT N

179 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

180 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

181 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 3 ATTACHMENT O

182 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 3

183 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 3

184 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 20 ATTACHMENT P

185 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 20

186 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 20

187 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 20

188 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 20

189 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 20

190 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 20

191 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 20

192 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 20

193 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 20

194 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 20

195 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 20

196 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 20

197 Case 1:08-cv JFM Document Filed 04/07/10 Page 14 of 20

198 Case 1:08-cv JFM Document Filed 04/07/10 Page 15 of 20

199 Case 1:08-cv JFM Document Filed 04/07/10 Page 16 of 20

200 Case 1:08-cv JFM Document Filed 04/07/10 Page 17 of 20

201 Case 1:08-cv JFM Document Filed 04/07/10 Page 18 of 20

202 Case 1:08-cv JFM Document Filed 04/07/10 Page 19 of 20

203 Case 1:08-cv JFM Document Filed 04/07/10 Page 20 of 20

204 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 27 ATTACHMENT Q

205 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 27 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND BALTIMORE DIVISION MAYOR AND CITY COIJNCIL OF BALTIMORE, Plaintiff, V. No. 1:08-cv BEL WELLS FARGO BANK, N.A. and V/ELLS FARGO FINANCIAL LEASING,INC., Defendants. SUPPLEMENTAL DECLARATION OF IRA J. GOLDSTEIN I,IraJ. Goldstein, hereby state as follows: I am over the age of eighteen and am competent to make this Declaration. I have personal knowledge of the matters set forth below. 1. I hold a Ph.D. in Sociology from Temple University granted in My current position is that of Director of Policy and Information Services ("Policf') at an organization called The Reinvestment Fund ("TRF"). 2. TRF is a Philadelphia-based community development financial institution whose mission is to alleviate poverty by building assets, wealth and opportunity for low- and moderate-

206 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 27 income communities and persons. TRF accomplishes its mission through the strategic use of capíial,knowledge and market innovation. I 3. I am also a Guest Lecturer at the University of Pennsylvania where, for the last20 yeaís, I have taught an undergraduate course in statistics and research methods for the Urban Studies Program. For the last 5 years, I also have taught a graduate seminar in the uses of data and research methods to study issues related to urban redevelopment and blight; this course is offered in both the Urban Studies Program and the Department of City and Regional Planning. 4. In myposition as Director of Policy for TRF, I am responsible for a number of grant and contract-related research projects. Among those projects have been a study of mortgage foreclosures in Baltimore for the Goldseker Foundation and other studies of mortgage foreclosures and predatory lending, including predatory lending in the City of Philadelphia under a grant funded by the Ford Foundation. 5. I also provided litigation support to the U.S. Attorney for the Eastern District of Pennsylvania on his predatory lending initiative and currently provide support to the Pennsylvania Human Relations Commission. 6. Prior to holding my position at TRF, I served at the United States Department of Housing and Urban Development ("IILID") as Director of Fair Housing and Equal Opportunity for the federal Mid-Atlantic Region, which includes Maryland. Among other duties, I was responsible for directing enforcement of the federal Fair Housing Act. At HUD, I developed ana ybícal tools to measure racial disparities in mortgage lending. My publications include a number of articles, book chapters, and a book. Iî2004,I wrote a paper presented at the Harvard University Joint Center for Housing Studies entitled "Bringing Subprime Mortgages to Market A complete description of TRF can be found at its website:

207 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 27 and the Effects on Lower-Income Borrowers."2 f also coauthored a book, released in 2008 by Temple University Press, titled Inequalitv with Carolyn Adams, David Bartelt and David Elesh. I was recently appointed to a threeyear term on the Federal Reserve Board's Consumer Advisory Council. My complete resume is attached as Attachment 1. L I have been asked by counsel for the City of Baltimore to supplement my earlier Declaration by describing, as a general matter, how one would create a methodology for determining the financial damages that would have accrued to the City in the form of a reduced residential property tax base resulting from the adverse effects of Defendants' foreclosed properties on suïounding property values. For purposes of this discussion, the impact is limited to that which the City experiences as a result of depressed property values and the resultant decline in its taxable property base. This Declaration does not address other damages that might result from foreclosures that could result in costs to the City. 8. The methodology draws upon the work of Professors Daniel Immergluck and Geoff Smith published in the Fannie Mae Foundation's professionally refereed journal Housing Policy Debate (2006, Volume 17,l: 57-80). The Immergluck and Smith work is widely regarded as the standard for making this sort of statistical computation. The basic data for the statistical computations typically includes, but is not limited to, physical location of property; property appraisal reports; date of sale; sale price; and an array ofphysical characteristics of the property. 9. The method as applied here, requires making counts of the number of all foreclosure frlings and Defendants' foreclosure filings within 1/8 and ll4 mlle of the properties that sold; only those foreclosures occurring within two-years prior to a property's sale date are counted. A copy of the paper can be found at htþ://wwwjchs.harvard.edr.r/publications/finance/babc/babc-04-7.pdf.

208 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of After counts of the foreclosures are completed, the methodology requires gathering aî array of Census tractlblock group characteristics reflective of the general market. 11. Using a hedonic multiple regression approach, sale prices are predicted using the property and Census tractlblock group characteristics; next, all foreclosures are added to the prediction model; finally, Defendants' foreclosures are added to the model. The statistical technique yields a set of statistical results showing the impact of each of the aforementioned factors (i.e., property and location/neighborhood characteristics); it also quantifies the impact of Defendants' foreclosures on residential sale prices. 12. Once the impact of Defendants' foreclosures on sale prices is determined, the aggregate reduction in property value attributed to Defendants' foreclosures is made. That reduction is translated into taxable value using the appropri ate tax rate (currently at $ per $100 of assessed value). After applying the established tax rate, an aggregate impact to Plaintiffs is made. 13. hr my opinion, both the methodology described above and the type of analysis involved in that methodology are fully applicable to the facts of this case and can be applied to establish empirically derived damages assessments for the City of Baltimore. 14. We are aware that there is a Homestead Exemption in the City of Baltimore thal caps the amount of a real estate tax increase at 4o/o per year. That tax credit applies only to owner occupants who have lived in their home for six or more months of the taxyear. Moreover, property owners must have filled out the application to receive the exemption. There are several ways to control for the financial impact of this exemption on the aggregate financial damage computation. One approach relies on a systematic review of a random selection of property data to estimate the likelihood that a property owner receives an exemption, and if so, the size of that

209 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 27

210 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 27 my May 29,2009 Declaration to make this determination. Attached as Exhibit 4 is a list of the additional 8 properties; the 6 properties on this list that are marked with an asterisk are in census block groups that are greater than60%o Afücan-American households. I hereby declare under penalty of perjury that the foregoing is true and correct to the best of myknowledge and belief. EXECUTED WITHIN THE LINITED STATES ON: June 16, 2009 BY: ka J. Goldstein

211 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 27 Attachment #1 Resume: ha J. Goldstein

212 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 27 Resume Name: ka J. Goldstein Address: 7203 Lincoln Drive Philadelphia, PA Telephone: (2t5) (H) E:Mail: kalin@verizon.net (H) Ira.goldstein@trfund.com (O) (215) (O) Education: Ph.D. Sociology, Temple University (1/86) The Wrong Side of the Tracts: A Study of Residential Se gre gation in Philadelphia M.A. Sociology, Temple University (8182) B.A. Sociology, Temple University (5179) Reports, Publications & Reviews: "USDA's krational Rationale." In The Philadelphia Inquirer Op-Ed, November, 2008 (with William Yancey). "subprime Lending, Mortgage Foreclosures and Race: How far have we come and how far have we to go?" (with Dan Urevick-Ackelsberg). The Ohio State University Kirwan Institue for the Study of Race and Ethnicity, aper.pdfl Adams, David Bartelt and David Elesh). Temple University Press, (with Carolyn "Estimating the Percentage of Students Úrcome-Eligible for Free and Reduced Price Lunch." The Reinvestment Fund, A report prepared for the School District of Philadelphia. "One úrdustry's Risk is Another Community's Loss: The Impact of Clustered Mortgage Foreclosures on Neighborhood Property Values in Philadelphia" (with Richard Voith). Federal Reserve Bank of Philadelphia Discussion Paper, (forthcoming). "Lost Values: A Study of Predatory Lending in Philadelphia" The Reinvestment Fund, "The Economic Consequences of Predatory Lending: A Philadelphia Case Study." In Whv the Poor Pay More: How to Stop Predatory Lending, Praeger Publishers, Squires, "Bringing Subprime Mortgages to Market and the Effects on Lower Income Borrowers." The Joint Center for Housing Studies, Harvard University, Symposium on Building Assets, Building Credit. November, hü

213 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 27 "Methods for Identifying Lenders for Investigation Under the Fair Housing Act". In Mortgage Lending. Racial Discrimination. and Federal Policy, Urban Institute Press, Goering and Wienþ "Obfuscating the Reality of Lending Discrimination Through Deceptively Rigorous Statistical Analysis: Comment on Leven and Sykuta" (with Gregory Squires). Urban Affairs Review,1995, Vol. 30,4. "Racial Bariers to Credit: Comment on Hula" (with Anne Shlay and David Bartelt). Urban Affairs Quarterly, 1992, Vol. 28, 1. Mortgage Lending Patterns in Philadelphia A report prepared for the Philadelphia Commission on Human Relations, April, Published in Making Home Ownership a Reality - Not Just a Dream. Philadelphia Commission on Human Relations Conference Proceedings. (with Carolyn Adams, David Bartelt, David Elesh, Nancy Kleniewski and William Yancey). Temple University Press, "Homeless With Children: African American Women In Philadelphia" (with Phyllis Ryan and David Bartelt). In The State of Black Philadelphia. Vol. D(, The Urban League of Philadelphia, October, "Public Education In Philadelphia: A Demographic and Social Profile." In The State of Black Philadelphia. Vol. D(, The Urban League of Philadelphia, October,1990. "Homelessness: A Sign of the Times." Planners Network, 1990, 81, 3. (wrth Leah Gaskin White). A report prepared jointly with the Philadelphia Commission on Human Relations, Jantary,1990. Book review for the American Journal of Sociology, 1990, Vol. 96, L by Lily M. Hoffman. (with David Bartelt and Phyllis RyaÐ. A report prepared under a grant from the Thomas Skelton Foundation, October, "There Isn't the Housing for the Homeless." In The Philadelphia Inquirer Op-Ed, September, "An Analysis of the Real Estate Assessment Practices of the City of Philadelphia's Board of Revision of Taxes" (with Robert Beauregard and Arthur Lyons). A report commissioned by the City Council of Philadelphia, September, "Local Tax Reform: Is It Good For Philadelphians?" Institute for Public Policy Studies; Working Paper Series, April, "Neighborhood Disputes and Intergroup Tension Events" (with William Yancey). In The State of Intergroup Harmony , Philadelphia Commission on Human Relations, October, 1988.

214 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 27 "Getting the Credit We Deserve: An Analysis of Residential Lending in New Castle County, Delaware; " (with Anne B. Shlay). A report commissioned by the Delaware Community Reinvestment Action Council. "North Philadelphia: A Social and Demographic Profile" (with William L. Yancey). Institute for Public Policy Studies; Working Paper Series, August, Homelessness in Pennsylvania: How Can This Be? 1988 (with Phyllis Ryan and David Bartelt). A report prepared for the Coalition on Homelessness in Pennsylvania and the Pennsylvania State Legislature. "Islands in the Stream: Neighborhoods in the Political Economy of Urban Areas" (with David Bartelt, David Elesh, George Leon, and'ü/illiam Yancey). In Human Behavior and the Environment, Plenum Publishers, Altman and Wandersman, "The Ecology of Health and Education Outcomes: An Analysis of Philadelphia Public Elementary Schools" (with William Yancey and David Webb). A report prepared for the Philadelphia School District, July, "Rising Properly Values as a Double Edged Sword: An Analysis of Residential Sales in Philadelphia, " Institute for Public Policy Studies; Working Paper Series, #21, December, "Projects, Blacks and Public Policy; The Historical Ecology of Public Housing in Philadelphia" (with William Yancey). In Housinq Deseqregation, Race, and Federal Policies, University of North Carolina Press, ed. John Goering, "The Flow of Housing Capital in the Philadelphia Metropolitan Area, " Institute for Public Policy Studies; Working Paper #20, September, "Suddenly, Racism Has Reawakened in the Delaware Valley." úr Philadelphia Dail] News Guest Opinion Column, August, "The Ecology of Educational Outcomes: A Preliminary Report" (with William Yancey and Leo Rigsby). A report prepared for the Philadelphia School District, July, "The Energy of Racism is Misdirected." In Philadelphia Tribune, Editorial Column, Ill4ay,1987. "Neighborhoods and Schools: 30 Years of Urban Change" (with William Yancey). A report prepared for the Philadelphia School District, May, "Residential Segregation and Color Stratification Among Hispanics in Philadelphia: A Comment on Massey and Mullan" (with Clark White). American Journal of Sociology, 1985, YoL9l,2. The Jewish Population of the Greater Philadelphia SMSA (with William Yancey). A report prepared for the Federation of Jewish Agencies, November 1984.

215 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 27 Paper Presentations and Speeches: "Next Steps in Fair Housing: Where is "Affirmatively Furthering Fair Housing" in IfUD's Neighborhood Stabilization Program?" Presented at the National Housing Law Project / Housing Justice Network Conference, Washington, DC, "Subprìme Lending, Mortgage Foreclosures and Race: How far have we come and how far have we to go?" Presented at The Ohio State University's Kirwan Institute for the Study of Race and Ethnicity Conference. Columbus, OH, "CDFI Financing of Supermarkets in Underserved Communities: a case study." (with Lance Loethen, Cuthy Califano and Edward Kako). Presented at The Community Development Financial Úrstitutions Fund Research Conference. Washington, "Mortgage Foreclosures and Subprime Lending: An Assessment of the Issues and Proposed Policy Solutions." Presented atthe 29th Annual Research Conference of the Association for Public Policy Analysis and Management. November,2007. "Update On Philadelphia Market Value Analysis." Presented at the City of Philadelphia's Annual Developer's Breakfast. May, "Trends In Homeownership Across the Commonwealth of Pennsylvania." Presented at the Commonwealth Housing Forum of the Pennsylvania Housing Finance Agency. Apr l,2007. "Market Value Analysis: Understanding'Where and How To Invest Limited Financial Resources." Federal Reserve Bank of St. Louis' Series on Neighborhood Revitalization. December,2006. "Mortgage Foreclosures In Baltimore, MD." Presented at the Baltimore Homeownership Preservation Conference. October, "Mortgage Foreclosures and Predatory Lending Ír Philadelphia." Presented at the American Bar Association's National Legal Aid and Defender Association Conference. July, "One Industry's Risk is Another Community's Loss: The Impact of Clustered Mortgage Foreclosures on Neighborhood Properly Values in Philadelphia." Presented at the Federal Reserve Bank of Philadelphia's Reinventing Older Communities: People, Places, Markets. March,2006. "Approaches Used By Non-Auditors To Investigate and Report Complex Public Issues." Presented at the National Conference of State Legislators - National Legislative Program Evaluation Society. October, "A Study of Mortgage Foreclosure Activity in Pennsylvania, " Presented at the Federal Reserve Board's Consumer Advisory Council. March, "Reflections on the American Dream; Experiences in Pennsylvartia." Presented at the FNMA Annual Conference on Fair Lending." September, 2004.

216 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 27 "Maintaining Economic Gains: Partnerships To Protect Low Income Families From Predatory Lending." Presented at the American Public Human Services Association Family and Economic Success Forum. May, "Recent Subprime Anaþses; Foreclosures and Race." Presented at the National Fair Housing and Fair Lending Research and Policy Forum. March,2004. "Does Predatory Lending Disproportionately Affect Protected Classes Under the Fair Housing Act: The Latest Research." Presented at the John Marshall Law School Fair HousingLegal Support Center Symposium on Fair Housing and Predatory Lending Law. September, "The Disproportional Incidence of Subprime and Predatory Lending on Protected Classes: New Data." Presented at the National Consumer Law Center Symposium on Market Failures & Predatory Lending. May, "Predatory Lending: Overview and Policy Implications for Human Rights Agencies." Presented at the 54th Annual Conference of the International Association of Human Rights Agencies. July, "Leveraging Change: Gauging the Impacts of Neighborhood Investment" with David Bartelt. Presented at the Annual Meeting of the American Sociological Association,2002. "Predatory Lending: From the Kitchen Table to Wall Street." Presented at regional forums of Freddie Mac's Don't Borrow Trouble in TX, NY, and CA, Methods for Identifying Lenders for Systemic Investigation Under the Fair Housing Act." Presented at the Home Mortgage Lending and Discrimination Research and Enforcement Conference, Washington, D.C., I 993. "Proving Disinvestment: The CRA Experience" (with Anne Shlay). Presented at the Annual Meetings of the American Sociological Association, Pittsburgh, "Mortgage Lending Pattems in Philadelphia, " A speech delivered to the Philadelphia Commission on Human Relations' "Making Home Ownership a Reality - Not Just A Dream" Conference, Philadelphia, l99l. "Mortgage Redlining in Philadelphia - An Empirical Analysis." A speech delivered to the Philadelphia Finance Association, Philadelphia, "An Overview of Mortgage Redlining; Background,Data, Research Methods and Conclusions." A speech delivered at the HUD Region m FHAP Training Conference, Philadelphia,1990. "The Role of Statistics In the Proof of Housing Discrimination." A Speech delivered at the HUD Region III FHAP Training Conference, Philadelphia, "Homelessness in Philadelphia." Public testimony delivered at the Affordable Housing Forum, University of Pennsylvania, Philadelphia, "Homelessness in Philadelphia: Roots, Realities and Resolutions" (with Phyllis Ryan and David Bartelt). Presented at the Aruruai Meetings of the Society for the Study of Social Problems, Berkeley,

217 Case 1:08-cv JFM Document Filed 04/07/10 Page 14 of 27 "Philadelphia's Ignored Homeless - Unemployed Minority Males." A speech delivered at the Annual Meeting of Philadelphia Committee for the Homeless, Philadelphia, "Why Should There Be Intergroup Harmony?" A speech delivered at the Bi-annual Meeting of the Alliance for Intergroup Harmony, Philadelphia, "The Role of Academics in CRA." A speech delivered at the U.S. Department of Housing and Urban Development Region III Fair Housing and Equal Opportunity Conference, Baltimore, "GDI: A Gentrification/Displacement Detection System." Presented at the Annual Meetings of the American Sociological Association, Chicago, "The Persistent Significance of Race; A CitylSuburb Comparison of Mortgage Lending in the Philadelphia Metropolitan Area." Presented at the Annual Meetings of the Eastern Sociological Society, Boston, "The Ecology of Health and Education Outcomes: An Analysis of Philadelphia Public Elementary Schools." Presented at the Brown II Commemorative Program, School District of Philadelphia, "The Ecology of Educational Outcomes" (with William Yancey and Leo Rigsby). Presented at the Brown II Commemorative Program, School District of Philadelphia, "Political Integration and Residential Segregation; A Case Study of Philadelphia Voter Turnout" (with Patrick Feeney). Presented at the Annual Meetings of the American Sociological Association, Washington, I 985. "Neighborhoods and Schools: 30 Years of Urban Change" (with William Yancey). Presented at the Brown II Commemorative Program, School District of Philadelphia, Philadelphia, "The Political Economy of Residential Segregation: A Study of Philadelphia Neighborhoods." Presented at the 15th Annual Meetings of the Urban Affairs Association, Norfolk, "See No Evil, SpeakNo Evil: The New Right, The Civil Rights Commission and 1984" (with Patrick Feeney). Presented at the Annual Meetings of the American Sociological Association, San Antonio,1984. "Projects, Blacks, and Public Policy: The Historical Ecology of Public Housing in Philadelphia" (with William Yancey). Presented at the Annual Meetings of the American Sociological Association, Detroit, "Social Indicators of Four Types of Homicide" (with Margaret Zaln). Presented at the 8th Annual World Congress of Social Psychiatry, Paris, 1982.

218 Case 1:08-cv JFM Document Filed 04/07/10 Page 15 of 27 Teaching Experience: University of Pennsylvania : Introduction to Urban Research Information, Public Policy and Distressed Cities City Limits: The Impact of Urban Public Pohcy Temple University: Úrtroduction to Sociology Undergraduate Statistic s Society and Personality Urban Affairs - Discrimination in Housing Research/Employrnent Experience : June 1999 to present: Director. Policv and Information Services. The Reinvestment Fund The Reinvestment Fund (TRF) is a regional community development financial institution that uses capital and technical experlise to build wealth and create economic opportunity for low wealth communities and low and moderate income individuals. TRF accomplishes its mission through its financial support of affordable housing development, charter schools, community facilities, commercial real estate, small businesses, and workforce development programs. Policy and Information Services ("Policy") is an office within TRF that designs and conducts research that evaluates TRF's progress toward meeting its goals with regard to the social impact of its investments. Policy also conducts research that relates to public policy issues that impact upon our core market constituency. This research supports the development of new policy to be introduced into the public forum for debate and implementation. Policy is also responsible for obtaining and administering grant-funded and contract research that relates to the Fund's core mission. A sampling of TRF's Policy government past and preset clients includes, but is not limited to: Pennsylvania Department of Banking, Pennsylvania Housing Finance Agency, City of Philadelphia, New Jersey Housing and Mortgage Finance Agency, New Jersey Department of Community Affairs, Federal Reserve Bank of Philadelphia, City of Baltimore, Delaware Department of Banking, School District of Philadelphia. January 1998 to June 1999: Housing and Urban Development, Pennsylvania State Office, U.S. Department of The Hub Director is the highest ranking fair housing position in HUD's Mid-Atlantic area. My jurisdiction included the states of Pennsylvania, Delaware,Maryland, Virginia, V/est Virginia and the District of Columbia. I was responsible for directing the investigation and resolution of fair housing cases under several statutes, including the Federal Fair Housing Act. Where state or local agencies exist that offer rights and remedies that are "substantially equivalent" to the those afforded by HUD and the Fair Housing Act, I was responsible for insuring that these agencies processed cases of discrimination in a manner that is consistent with the dictates of the law. Under current delegations of authority, with the concurrence of Regional Counsel, I was responsible for deciding whether there was factual evidence sufficient to render a determination that one (or more) statutes have been violated. I managed a staff of approximately 30 people in

219 Case 1:08-cv JFM Document Filed 04/07/10 Page 16 of 27 the PA State Office; another 20 people around the Mid-Atlantic reported to me as well. I reported directly to the Assistant Secretary and General Deputy Assistant Secretary. This position required frequent travel and public appearances. I spoke publicly before trade groups (e.g., Mortgage Bankers Association, Maryland Multi-Family Housing Organizalion) fair housing organizations, and had frequent contact with elected and appointed public officials (e.g., mayors, senators, governors, council members, solicitors). Finally, Congress makes available a pool of funds that are subject of an annual competition among groups involved in fair housing advocacy and enforcement. On several occasions, I was called upon by the Assistant Secretary to contribute to the decisions on granting these funds. The management portion of this job entailed working with the union and staff to insure a working environment that is free of social and/or structural impediments to productivity. From February 1995 until January of 1998, the official date for position changes resulting from HIID's Management 2020, the position I held was that of Fair Housing Enforcement Center (FHEC) Director. The responsibility of the position as Hub Director completely subsumed that of the: (a) FHEC Director; (b) what was formerly known as the Program Operations and Compliance Center (POCC) Director; (c) allof the Directors of the HUDÆHEO Offices within the Mid-Atlantic. June 1991 to January 1998: Chief. S] stemic Investieations Branch, U.S. Department of Housing and Urban Development, Philadelphia Regional Office In this position I was responsible for enforcing the federal Fair Housing Act through investigation of housing discrimination complaints. The Systemic Írvestigations Branch investigates complaints of housing discrimination which have many victims, or the nature of the discrimination is such that it is reflective of a pattern or practice of institutional discrimination. As Chief, I was also responsible for conducting Secretary Initiated complaints, an enforcement tool new to the 1988 Amendments of the Fair Housing Act. This position required that I introduce to HIID's Fair Housing and Equal Opporlunity Office the science of data and statistical analysis to the investigation of housing discrimination complaints. I developed and was the first in the country to receive Assistant Secretary approval to initiate a Secretary Initiated investigation of discrimination in mortgage lending in Philadelphia. The position included a full complement of administrative responsibilities. I supervised a staff of eight professional investigators and " outstanding scholar" intems. For the last year that I held this position, I was detailed to the headquarters office in Washington, D.C. There, I worked in the Office of Regulatory Initiatives and Federal Coordination on a Task Force on Fair Lending that was constituted with representatives of all of the financial regulatory agencies as well as the Departments of Housing and Urban Development and Justice. Also, I was involved in developing a regulation to support the Fair Housing Act's prohibitions against mortgage lending discrimination. While on detail, together with a colleague, we developed a computer based system that produced reports using Home Mortgage Disclosure Act and Census data to be used by investigators across the country in the investigation of mortgage lending discrimination complaints.

220 Case 1:08-cv JFM Document Filed 04/07/10 Page 17 of 27 August 1988 to June 1991: Associate Director, Institute for Public Policy Studies (IPPS) This position requires full administrative responsibility for departmental functions including staffing and budget. The acquisition and administration of departmental research and grants/contracts is an essential component. Ír this capacity, the Associate Director acts as liaison between funding sources, researchers, and university officials. The Associate Director is also responsible for carrying out empirically based policy research, and creating a forum in which policy researchers from a variety of backgrounds may meet and exchange ideas on issues of contemporary public policy importance. Ú1 1989, IPPS became a Research Affiliate of the Pennsylvania State Data Center; the Associate Director is responsible for coordination of all related activities. Professional Activities and Awards: Recipient of the Consumer Credit Counseling Servrce of Delaware Valley's Peter F. Iacovini Credit to Greater Philadelphia Community Award Committee Member, Pennsylvania Housing Advisory Committee (Gubernatorial Appointment) Member, Federal Reserve Board Consumer Advisory Council ( ) Member, Research Advisory Group, Center for Responsible Lending Referee, Urban Affairs Ouarterly Referee, Journal of Urban Affairs Referee, Law and Social Policy References Available Upon Request

221 Case 1:08-cv JFM Document Filed 04/07/10 Page 18 of 27 Attachment #2 Currently vacant properties

222 Case 1:08-cv JFM Document Filed 04/07/10 Page 19 of 27 ) l3 Mt. Vemon P. * 2', c North Hilton St. ) C WLANVALE ST i S EAST AVE 1', S DURHAM ST ( Broadmoor Rd. t CROYDONROAD * t (. NBELNORDAVE t ) ROBERT ST * ) ROBERT ST * N LINV/OOD AVE WHITRIDGEAVE ) : FURROW ST * i s c N CLINTON ST { S CLINTON ST NBRICE ST * N AUGUSTAAVE * CUMBERLAND ST {C s2 801 ARNOLD CT * NLAKEWOODAVE { N CTIESTER ST ),1 MCIIENRY ST * N LAKEV/OOD AVE * 2s24 00s 1009 Lpdhurst I 108 W. Favette St tt2( CARROLL ST * Dukeland St. * Hollins St.,r 0300c 065 I54t N WOODYEAR ST * E 28TH ST * Division St. * t6t9 POPLAR GROVE ST * CHILTON ST * ) t]t9 HOLLINS ST * ) t72t LEMMON ST {r,1. {. :N. rf { E OLIVER ST E 31ST ST s6 19t2 PARKAVE W Lexington l07l 040 t941 W. Mosher St t4 BARCLAY ST

223 Case 1:08-cv JFM Document Filed 04/07/10 Page 20 of 27 * ) PENROSEAVE {. * BAKER ST BARCLAY ST lc t8B 2221 Eutaw Pl. * E FEDERAL ST F LLE\MELYN AVE {ç LINDENAVE * LINDENAVE : V/PRATT ST * 3463F LINDENAVE 7492C MARBOURNE * \ C Shirley Ave.,1. rl E Hoffrnan 4070A Boone St DULANY ST * HAFER ST * MAISEL ST DLILANY ST * 4747C015 2't00 CLYBURNAVE BAYONNEAVE * \ORFOLKAVE LOUISEA\ E * PARKWOOD AVE * 1470D RAYSHIREROAD,( ROCKROSE AVE * r8 WINCHESTER ST :1. t c W GARRISON AVE +198B Iona Terrace * +0141^ MATHEWS ST lr t88a LAWNVIEV/AVE * Lawnview Ave WILKENSAVE Baltimore St. 55' r3 ROSALIE AVE * t6 EDMONDSONAVE * 4178I RAVENWOODAVE * +119G lll 3505 ILINEWAY * 8294A Plateau Ave * +r19c LYNDALEAVE r 4TH ST * I Oakrnont Ave.

224 Case 1:08-cv JFM Document Filed 04/07/10 Page 21 of 27 * FAIRVIEV/AVE * s 3701 Dennlvn Rd. * Colborne Rd.,1. {. 1. {. r79s BONVIEV/AVE BEEHLERAVE BONNERROAD 2s28F STOKES DR F 21s WOODHAVEN AVE * 3r75A REISTERSTOWN RD 5898H EIERMANAVE * PENHURSTAVE 5s t { C F Northern Parkwav 44fi RIDGEWOODAVE 4028 Rideecroft Rd GRANITE AVE Jverlea Ave t 4110 SOUTHERNAVE t FERNHILL AVE D 4213 ARIZONA AVE KAVONAVE r864n 038 i4t FIARCOURT ROAD 5602 HamletAve. 5812B 007( 5632 BELAIRRD Birchwood Ave.

225 Case 1:08-cv JFM Document Filed 04/07/10 Page 22 of 27 Attachment #3 Properties that have been vacant

226 Case 1:08-cv JFM Document Filed 04/07/10 Page 23 of 27 rl,1.,t * 2153 r15 40 Bentalou St t02 S LOUDONAVE ) S GILMOR ST t] S ROBINSON ST Patterson Park Ave E BELVEDERE AVE 2299D 015 t tt 032G 328 ALLENDALE ST 401 E FORT AVE 411 Fawcett St N BOULDIN ST * N EAST AVE * ) Arlinston Ave.,I E 23RD ST * N ROBINSON ST * WINSTONAVE,r Patapsco Ave. J NCARROLLTONAVE s36 HLIRLEYAVE * t64t NROBINSON ST * CUEENSGATE ROAD * t r0 NLUZERNE AVE rl C S WOODINGTONRD \IKENWOODAVE Ieffrev St. * \TAUGUSTAAVE WAS}IBURNAVE * N Central * !{. Rosedale rf RADNORAVE 7654H Ward St. 041 PINE IIEIGHTS AVE J lt RACE ST * Northem Parkway * t977f Northview * ) W. Lafayette {. 76s4I{tr9 2Z:8 S GRANTLEY ST )249 A V/LOMBARD ST 5210C LimitAve t5 312 S HIGHLAND AVE F 'j E Lafayette * 526tO 149 5l Stonewood Rd.

227 Case 1:08-cv JFM Document Filed 04/07/10 Page 24 of 27 * ) I 536 Roundhill Rd. * E. Federal St. * ÑLONGV/OOD ST ïc J N Gilmor * l6l9 Ashburton St. t0l S CHARLES ST * NELLAMONT * E BELVEDERE * GORSUCHAVE {.,1.,Ì t7lt BURNWOODRD N Wolfe t729 Ashburton St. * r734 N PULASKI ST * t Llewelyn * RUXTONAVE {.!f, t6 ]LIFTON WHITTIERAVE '1 E Preston ) t4 WILKENS AVE * ',7 Linden 7492C HARzuET * ASHLAND AVE, A WCOLD SPRINGLN * WLOMBARD ST 7492C t SOUTHDENE LEHMANST Guilford Ave., l08a 2724 UHLERAVE * EDGECOMBE CIRN rr ' 2807 GEORGETOWNROAD ROUND ROAD t ROSELA\MNAVB, C LAKE AVE * Winchester St. { tt BRIGHTON ST 5482D lnglewood Ave. {c 7470D C RAYSHIRE RD!f f 7492C Elizabeth Ave. t49t Federal St A028 3tt4 NORMOUNTAVE t C \MISTERIA AVE

228 Case 1:08-cv JFM Document Filed 04/07/10 Page 25 of 27 * 591 lb Kentuckv Ave. {. 7703K CLARINDAAVE ç GV/YNNS FALLS PKWY * WNORTTIERN PKWY * W CATON AVE i EDMONDSONAVE * JREENMOUNTAVE * Forest Park * HILLSDALE ROAD * r79e 006r 3617 BREHMS LANE * OLIFTON AVE 76s4G W PATAPSCO AVE { CLIFTON AVE k 5t ELMORAAVE * CHESTERFIELD AVE rl. 5695F H I MARY AVE 4146 EIERMAN AVE 4351 Old Frederick Rd. * 3350D FINNEYAVE * 5t9t WRENV/OOD AVE * 8102K '7 PEN LUCY RD 1. 52t fld York Rd d( REENCREST RD * 4st Beaufort Ave. * Woodlands Glen * s F{ILLEN ROAD * \orwood Ave. * l s302 Brabant Road s 5413 THE ALAMEDA * BUCKNELL RD rl(, I WESLEY AVE 5210D \\ YORKWOOD ROAD 5668A ALTA AVE

229 Case 1:08-cv JFM Document Filed 04/07/10 Page 26 of 27 Attachment #4 Additional currently v acant properties

230 Case 1:08-cv JFM Document Filed 04/07/10 Page 27 of 27 * 2I5 E NORTH AVE * RAMBLEWOOD RD { THOMAS AVE 1845 MCHENRY ST * 3L86 0L BOARMAN AVE 642L EASTERN AVE * 340L HOLMES AVE * EDMONDSON AVE

231 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 24 ATTACHMENT R

232 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 24

233 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 24

234 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 24

235 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 24

236 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 24

237 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 24

238 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 24

239 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 24

240 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 24

241 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 24 EXHIBIT A

242 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 24 LICENSED: EDUCATION: Maryland, December 2000 University of Baltimore School of Law, J.D., May 2000 Jason Hessler 417 E. Fayette Street, Suite 202 Baltimore, Maryland University of Maryland at College Park, B.A. in Government and Politics, Environmental Science Minor, May 1996 WORK EXPERIENCE: Department Of Housing and Community Development, Baltimore City, MD Acting Director. October 2001 Present. Represent the Mayor, City Council and the State of Maryland in civil and criminal trials relating to the Building, Housing and Zoning Codes of Baltimore City. Provide in-house code enforcement litigation counsel to DHCD. Supervise office comprised of 8 attorneys, 7 paralegals and 5 investigators. Manage the development, training and implementation of several web-based programs used in the daily operation of code enforcement and housing inspections. Serve the Deputy Commissioner of Code Enforcement on special projects. Supervise mayoral fellows, law students and college interns. Train legal staff, housing inspection staff and agency partners in the Mayors Office and Department of Planning on database systems, geographic imaging systems and other programs used in developing code enforcement strategies. Meet with community leaders, associations and agency partners to develop strategic plans for localized code enforcement. Conduct community trainings on web-based technologies. Served as Staff Attorney from October May 2004, Managing Attorney from May 2004 July 2006 and Deputy Director from July 2006 September Honorable Thomas J. Waxter, Judge Circuit Court, Baltimore City, MD Law Clerk, September 2000 September Draft legal opinions; research legal issues relating to civil motions and criminal trials; supervise the research and writing of a summer intern and observe proceedings. Public Justice Center, Baltimore City, MD Summer Law Clerk and Volunteer Tenant Advocate, May 1999 May Handle all aspects of representation of tenants, including researching and writing motions and other documents; providing counseling in rent court procedures; mediating landlord-tenant disputes; interviewing witnesses; and appearing in rent court. Honorable Carolyn Krysiak, Maryland General Assembly, Annapolis, MD Legislative Aide, February 1998 April Coordinate scholarship process; draft letters to constituents; maintain database; manage legislative office; research legislation. - Hessler 1 -

243 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 24 Community Law Center, Baltimore City, MD Intern, February May Collect evidence and research legal theories for drug nuisance abatement and real estate flipping litigation. Draft complaints in drug nuisance abatement cases. Work with community leaders to fight neighborhood deterioration. Community Development Clinic, University of Baltimore Summer Law Clerk, May September Maintain cases during summer interim by serving as a point of contact for clients and attend client community meetings; update case files, close cases and complete student case notes; create uniform filing and directory system for case files; edit and update student manual and other clinic resources. Community Development Clinic, University of Baltimore Rule 16 Student Attorney, August May Handle all aspects of transactional matters for several community clients including drafting by-laws; leading nonprofit organizational meetings; obtaining 501(c)(3) status for a homeless shelter; and resolving a property receivership matter. Honorable Thomas J. Waxter, Judge Circuit Court, Baltimore City, MD Intern, June August Research legal issues relating to criminal trials; observe proceedings; document court proceedings for chamber records. National Youth Leadership Forum, Washington, DC Admissions Coordinator, September June Manage aspects of the application process including updating incomplete applications; providing students and teachers with program information; and assisting in the supervision of 350 students participating in a forum on Law and the Constitution. MEMBERSHIPS: HONORS: Bar Association of Baltimore City, 2000 present Bar Association of Baltimore City Young Lawyer s Division, Chair Bar Association of Baltimore City, Judicial Selections Committee, Member present Maryland State Bar Association, Young Lawyer s Section, Chair 2009/10 Maryland State Bar Association, Board of Governors, , 2009/10 Baltimore City Bar Foundation, Board Member, present Equal Justice Council of the Legal Aid Bureau, Board Member, Pro Bono Resource Center, Alex Fee Memorial Award, 2008 Baltimore Housing, Outstanding Achievement, 2006 Baltimore City Bar Foundation, Fellow, 2006 Maryland State Bar Association YLD, District Rep. of the Year, Bar Association of Baltimore City, Presidents Award, 2003 University of Baltimore Alumni Assoc. Spirit of Excellence Award, 2000 University of Baltimore Dean s Citation, 2000 Maryland Legal Services Corporation Designated Grant Recipient, 1999 Community Development Clinic Clinician of the Year, 1998/99 Eagle Scout, Hessler 2 -

244 Case 1:08-cv JFM Document Filed 04/07/10 Page 14 of 24 PRESENTATIONS National Vacant Properties Campaign: Reclaiming Vacant Properties. Prosecuting Housing Code Violations: Essential Neighborhood Stabilization Strategies, June 2, 2009, The Galt House Hotel and Suite Louisville, Kentucky Baltimore Homeownership Preservation Coalition 2009 Forum. Legal Responses to the Mortgage Crisis, April 21, 2009, Tremont Grand Hotel Baltimore, Maryland Bureau of Justice Assistance: Foreclosures: Community Impacts and Collaborative Responses Baltimore Model: Tools and Strategies for Successful Code Enforcement in a Challenging Environment, January 15, 2009, District of Columbia Greater Homewood Community Corporation, 2 nd Annual Neighborhood Institute, Code Enforcement as a Revitalizing Tool and Drug Nuisance Abatement, November 15, 2008, Baltimore, Maryland Ask A Lawyer, Property Owners Association of Maryland, February 3, 2009 Greater Baltimore Investors Group, September 4, 2008 The National Conference on Legal Remedies. Maryland Department of the Environment. Using Existing Municipal Powers and Policies to Combat Lead Poisoning, November 29, 2007, Baltimore, Maryland 2nd National Community Prosecution Conference Workshop III, Tools for Developing and Managing a Comprehensive Plan to Address Neighborhood Quality of Life Issues, April 15, 2003, District of Columbia - Hessler 3 -

245 Case 1:08-cv JFM Document Filed 04/07/10 Page 15 of 24 EXHIBIT B

246 Case 1:08-cv JFM Document Filed 04/07/10 Page 16 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address Mt. Vernon P. * 2275E North Hilton St W LANVALE ST S EAST AVE S DURHAM ST Broadmoor Rd. 5093A CROYDON ROAD * N BELNORD AVE * ROBERT ST * ROBERT ST * N LINWOOD AVE WHITRIDGE AVE FURROW ST * N CLINTON ST S CLINTON ST * N BRICE ST * N AUGUSTA AVE * CUMBERLAND ST * ARNOLD CT * N LAKEWOOD AVE * N CHESTER ST MCHENRY ST * N LAKEWOOD AVE * Lyndhurst * W. Fayette St CARROLL ST * 2388A Dukeland St. * Hollins St. * 0300C N WOODYEAR ST * E 28TH ST * Division St. * POPLAR GROVE ST * CHILTON ST * HOLLINS ST * LEMMON ST * E OLIVER ST * E 31ST ST * PARK AVE * W Lexington * W. Mosher St. * BARCLAY ST

247 Case 1:08-cv JFM Document Filed 04/07/10 Page 17 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address * PENROSE AVE * BARCLAY ST * BAKER ST * B 2221 Eutaw Pl. * E FEDERAL ST * LLEWELYN AVE * 3463B LINDEN AVE * 3463B LINDEN AVE * W PRATT ST * 3463F LINDEN AVE 7492C MARBOURNE * Shirley Ave. * E Hoffman * 4070A Boone St DULANY ST * HAFER ST * MAISEL ST DULANY ST * 4747C CLYBURN AVE BAYONNE AVE * NORFOLK AVE LOUISE AVE * PARKWOOD AVE * 7470D RAYSHIRE ROAD * ROCKROSE AVE * WINCHESTER ST * W GARRISON AVE 4198B Iona Terrace * 4074A MATHEWS ST * 4188A LAWNVIEW AVE * 4188A Lawnview Ave WILKENS AVE Baltimore St. 5570B ROSALIE AVE * EDMONDSON AVE * 4178I RAVENWOOD AVE * 4179G JUNEWAY * 8294A Plateau Ave * 4179C LYNDALE AVE TH ST * Oakmont Ave.

248 Case 1:08-cv JFM Document Filed 04/07/10 Page 18 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address * FAIRVIEW AVE * Dennlyn Rd. * Colborne Rd. * 4179S BONVIEW AVE * BEEHLER AVE * BONNER ROAD * 2528F STOKES DR * WOODHAVEN AVE * 3175A REISTERSTOWN RD 5898H EIERMAN AVE * PENHURST AVE Northern Parkway * RIDGEWOOD AVE 5845C Ridgecroft Rd. 5695F GRANITE AVE Overlea Ave SOUTHERN AVE * FERNHILL AVE D 4213 ARIZONA AVE * KAVON AVE 5864N HARCOURT ROAD Hamlet Ave. 5812B 007C 5632 BELAIR RD Birchwood Ave.

249 Case 1:08-cv JFM Document Filed 04/07/10 Page 19 of 24 EXHIBIT C

250 Case 1:08-cv JFM Document Filed 04/07/10 Page 20 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address * Bentalou St. * S LOUDON AVE * S GILMOR ST S ROBINSON ST Patterson Park Ave. 5093A E BELVEDERE AVE * 2299D ALLENDALE ST E FORT AVE G 411 Fawcett St N BOULDIN ST * N EAST AVE * Arlington Ave. * E 23RD ST * N ROBINSON ST * WINSTON AVE Patapsco Ave. * N CARROLLTON AVE HURLEY AVE * N ROBINSON ST * QUEENSGATE ROAD * N LUZERNE AVE * 2530C S WOODINGTON RD * N KENWOOD AVE Jeffrey St. * N AUGUSTA AVE WASHBURN AVE * N Central * N. Rosedale * RADNOR AVE 7654H PINE HEIGHTS AVE Ward St RACE ST * Northern Parkway * 3971F Northview * W. Lafayette 7654H S GRANTLEY ST W LOMBARD ST * 5210C Limit Ave S HIGHLAND AVE * E Lafayette * 5267O Stonewood Rd.

251 Case 1:08-cv JFM Document Filed 04/07/10 Page 21 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address * 3970B Roundhill Rd. * E. Federal St. * N LONGWOOD ST * N Gilmor * Ashburton St S CHARLES ST * N ELLAMONT * 5325B E BELVEDERE * GORSUCH AVE * BURNWOOD RD * N Wolfe * 2401B Ashburton St. * N PULASKI ST * Llewelyn * RUXTON AVE * CLIFTON * 3265B WHITTIER AVE * EP Preston WILKENS AVE * Linden 7492C HARRIET * ASHLAND AVE * 3350A W COLD SPRING LN * W LOMBARD ST 7492C SOUTHDENE LEHMAN ST Guilford Ave. * A 2724 UHLER AVE * 4813B 067L 2803 EDGECOMBE CIR N A 2807 GEORGETOWN ROAD * ROUND ROAD ROSELAWN AVE * LAKE AVE * Q 2835 Winchester St. * 2409A BRIGHTON ST 5482D Inglewood Ave. * 7470D RAYSHIRE RD 7492C Elizabeth Ave. * Federal St. * 2442A NORMOUNT AVE WISTERIA AVE

252 Case 1:08-cv JFM Document Filed 04/07/10 Page 22 of 24 Located in Predominantly African-American Neighborhood Block Lot Property Street Number Address * 5911B Kentucky Ave. 7703K CLARINDA AVE * GWYNNS FALLS PKWY * W NORTHERN PKWY * 2243B 021B 3403 W CATON AVE * EDMONDSON AVE * GREENMOUNT AVE * Forest Park * HILLSDALE ROAD * 4179E 006B 3617 BREHMS LANE * 2880B CLIFTON AVE 7654G W PATAPSCO AVE * 2880B CLIFTON AVE * ELMORA AVE * 4179S CHESTERFIELD AVE 5695F MARY AVE 5898H EIERMAN AVE * 8102I Old Frederick Rd. * 3350D FINNEY AVE * WRENWOOD AVE * 8102K PEN LUCY RD * 5212A Old York Rd. * GREENCREST RD * Beaufort Ave. * 4756B Woodlands Glen * 5267O HILLEN ROAD * Norwood Ave. * Brabant Road * THE ALAMEDA * 6072B BUCKNELL RD * WESLEY AVE * 5210D YORKWOOD ROAD 5668A ALTA AVE

253 Case 1:08-cv JFM Document Filed 04/07/10 Page 23 of 24 EXHIBIT D

254 Case 1:08-cv JFM Document Filed 04/07/10 Page 24 of 24 Located in Predominantly African-American Neighborhood Property Street Number Block Lot Address * E NORTH AVE * 5237B RAMBLEWOOD RD * THOMAS AVE MCHENRY ST * BOARMAN AVE EASTERN AVE * HOLMES AVE * EDMONDSON AVE

255 Case 1:08-cv JFM Document Filed 04/07/10 Page 1 of 13 ATTACHMENT S

256 Case 1:08-cv JFM Document Filed 04/07/10 Page 2 of 13

257 Case 1:08-cv JFM Document Filed 04/07/10 Page 3 of 13

258 Case 1:08-cv JFM Document Filed 04/07/10 Page 4 of 13

259 Case 1:08-cv JFM Document Filed 04/07/10 Page 5 of 13

260 Case 1:08-cv JFM Document Filed 04/07/10 Page 6 of 13

261 Case 1:08-cv JFM Document Filed 04/07/10 Page 7 of 13

262 Case 1:08-cv JFM Document Filed 04/07/10 Page 8 of 13 EXHIBIT A

263 Case 1:08-cv JFM Document Filed 04/07/10 Page 9 of 13 Determining the COST of Vacancies in Baltimore BY BOB WINTHROP AND REBECCA HERR

264 Case 1:08-cv JFM Document Filed 04/07/10 Page 10 of 13 As the number of home foreclosures rises nationwide, cities face mounting costs related to vacant and abandoned properties. Aside from subsidizing these costs through general funds, fees and fines, cities are suing mortgage financing companies and banks to recover costs, charging that irresponsible lending practices have led to increased foreclosures and vacancies. However, with any of these measures, it is necessary to demonstrate that there are specific costs associated with vacancies. STATISTICAL ANALYSIS In 2008, the city of Baltimore, Maryland, used econometric analysis to rigorously quantify the cost of police and fire services associated with vacant properties. Many studies have addressed the cost of vacant properties in a general sense, but Baltimore was the first city to undertake a detailed study of this nature. Working with a consultant, the city determined that the cost per block of police and fire services showed an annual increase of $1,472 for each vacant and unsafe property on that block (vacant and unsafe is a technical designation used by the City of Baltimore Housing and Community Development Department). Ohio Study Shows High Cost of Abandoned Properties A recent study of eight cities in Ohio conservatively identified nearly $64 million in total costs to local jurisdictions related to vacant and abandoned properties.* This included nearly $15 million in city service costs and more than $49 million in lost tax revenues from demolitions and tax delinquencies. Another study identified 26 distinct, foreclosure-related municipal costs that fall into categories such as building inspection and code enforcement, boarding and demolition costs, tax loss from demolition and unpaid property taxes, utility (water/sewer) bill delinquency, trash removal and mowing costs, and fire and police services.** * Community Research Partners, $60 Million and Counting: the cost of vacant and abandoned properties to eight Ohio cities (Columbus, Ohio: ReBuildOhio, February 2008). ** William C. Apgar and Mark Duda, Collateral Damage:The Municipal Impact of Today s Mortgage Foreclosure Boom (Minneapolis, Minnesota: Homeownership Preservation Foundation, May 11, 2005). The cost of the extra safety effort was determined based on 911 call data, a list of properties designated as vacant and unsafe for at least one month,and police and fire department budgets, all for fiscal The call data and vacant property information was used to construct an econometric model that measured the statistical relationship between the number of properties designated as vacant and unsafe on a block and the amount of time police and fire personnel spent on that block. In the analysis, officer minutes and fire fighter minutes were the base measures used, indicating one minute of time for one officer called to a specific block. For police officers,the officer minutes were calculated from the time an officer was dispatched until he or she left the scene,multiplied by the number of officers who responded. For fire fighters, the number of staff responding was not broken out in the data,so the Fire Department provided an estimated number of fire fighters who responded,based on the type of call.the econometric model used zip codes as a proxy control for geographic differences in public safety costs (i.e.,areas with more or less crime).the analysis determined a positive relationship between vacant and unsafe properties and the officer and fire fighter minutes spent on a given block. To calculate the cost of one officer or fire fighter minute,the portion of police and fire department budgets dedicated to responding to 911 calls known as the response budgets was divided by the total police and fire response minutes. These response budgets included most, but not all, of the departments activities. They excluded, for example, police special investigative teams and the fire prevention inspectors. This cost per officer or fire fighter minute was multiplied by the marginal increase in public safety response minutes associated with each additional vacant and unsafe designated property on a given block, as calculated by the model. The results of this analysis are shown in Exhibit 1. The analysis indicates a correlation between vacant and unsafe properties and increased police and fire cost,and it measures the size of that increase. But the analysis does not address whether the vacant properties caused the increase in cost or whether increased criminal activity might have caused an increase in vacancies. Further analysis would be needed to answer the causality question. The statistical results for police and fire fighter minutes yielded by the econometric model are shown in Exhibit 2.The coefficients are the incremental number of minutes spent for each vacant and unsafe property by block for police officers June 2009 Government Finance Review 39

265 Case 1:08-cv JFM Document Filed 04/07/10 Page 11 of 13 Exhibit 1: Summary Results Public Safety Direct Cost Total Police Budget $311,044,000 Response Budget $241,059,100 Annual Officer Minutes 107,262,204 Cost per Officer Minute $2.25 Additional Minutes for Each Vacancy on Block 445 Additional Police Cost for Each Vacancy $1,000 Total Fire Budget $137,761,000 Response Budget $134,145,000 Fire Fighter Minutes 39,211,589 Cost per Fire Fighter Minute $3.42 Additional Minutes for Each Vacancy on Block 13 Additional Fire Cost for Each Vacancy $472 Total Additional Public Safety Cost $1,472 or fire fighters, respectively. The coefficients are positive, as one might predict (i.e., more time is spent servicing blocks with vacant and unsafe properties than those without), and they are statistically significant. That is, there is a greater than 99 percent chance that these coefficients are not zero.the R 2 value indicates the amount of variation (in officer minutes) this equation explains.while vacant properties and zip codes can explain 8.4 percent of the variation of officer time spent on a specific block, 91.6 percent is explained by other variables such as poverty, density, transience, etc. EVERY ADDRESS IN BALTIMORE Conducting the analysis required four city departments to work together. The Department of Housing and Community Development (HCD) established which properties were vacant and unsafe.the police and fire departments provided specific call data, and the Department of Finance provided budget information. HCD also provided the real property file to determine the universe of addresses and blocks within the city. Each of the four departments assigned staff to a steering committee that guided the analysis. Over the 12 months of data, there were approximately 19,000 properties designated as vacant and unsafe for at least one month, out of 236,569 properties in the real property file. Of the addresses in the real property file, those that had descriptive names rather than address identifiers were removed, leaving in 229,020 addresses as the universe of properties in Baltimore. Unfortunately, while the police and fire data were input in the same format, the real property file used slightly different naming conventions. The following methodology was developed to rectify these differences and match real property addresses to call data. Four pieces of the street address were used to create a unique street address identifier: street name, house number, street type, and street direction (where applicable). The resulting address code is a unique 11-digit number.the first piece of the address code is the name of the street where the property is located.the consultant created a unique four-digit identifier for each of the approximately 2,500 street names in the real property file. The numbers were assigned to streets in alphabetical order,starting at The next digit of the address code was for the street direction. A unique number was assigned to each cardinal direction (i.e., North, South, East, and West), and for streets without a direction. For every street type (e.g., street, road, lane) in the real property file, a two-digit value was assigned. Street names that did not have a street type (e.g., Broadway) were assigned a value as well.the final piece of the address code was the house number. No house numbers were longer than four digits, so each one was converted to a four-digit number (e.g., 300 would become 0300). In the real property file, some of the addresses contained a range of house numbers; for the purposes of this analysis, the first house number in the range was used. As an example, the address code for the Baltimore Police Department headquarters, located at 601 E. Fayette St., is The first portion of the code is for the street name, Fayette, which was assigned the number 1849.The next number, 1, is the numeral assigned to the direction of East. Exhibit 2: Statistical Results Incremental Standard T Value R 2 Minutes Error of the (Coefficient) Coefficient Police Officers percent Fire Fighters percent 40 Government Finance Review June 2009

266 Case 1:08-cv JFM Document Filed 04/07/10 Page 12 of 13 Current Litigation A number of jurisdictions are suing banks, mortgage companies, and related firms in an attempt to recoup some costs related to foreclosures. The City of Baltimore The City of Baltimore, Maryland, filed suit in U.S. District Court, claiming a bank engaged in unfair lending practices that targeted minority communities in Baltimore, violating the federal Fair Housing Act and resulting in high rates of foreclosures and vacancies in minority communities.the city would like to recoup some of the costs it has incurred due to illegal practices.these costs include: decreased property tax revenue, increased expenditures for public safety, as well as related administrative and legal costs associated with foreclosures. The City of Buffalo The City of Buffalo, New York, sued more than 30 mortgage companies and banks to recoup costs for nuisance abatement related to specific buildings that have gone vacant and are now in disrepair.the city seeks reimbursement for the associated public nuisance costs, including demolition, associated with approximately 60 properties. The City of Cleveland The City of Cleveland, Ohio, has seen in increase in foreclosures over the past decade. Between 2004 and 2006, the number of foreclosures has increased to 7,369 from 397.The city is suing 21 banking institutions for public nuisance costs, including maintenance and demolition of vacant properties and the decrease in property tax revenues. The City of Minneapolis The City of Minneapolis, Minnesota, filed a suit against a real estate company, claiming it purchased and flipped homes in the north and northeastern areas of the city.the company was charged with inflating the values of the properties using fraudulent appraisals. Of the 140 homes purchased, more than half are in foreclosure.the city wants to obtain the foreclosed properties and rehabilitate these homes and rental properties. The State of New York The New York state attorney general filed suit against an appraisal company for providing inflated appraisal values on homes, allegedly in collusion with employees from one banking firm.the state seeks restitution for all individuals hurt by the conspiracy and all fees and costs associated with the filing, as well as reparations for all legal violations. The value of 35 corresponds to the street type, in this case street. The final portion is the four digit number for the house number, Using this methodology, an 11-digit number was created for each of the records in the real property file.in addition to the longer address code created for the specific address, a blocklevel address was created as well. The block-level code is a nine-digit number created by removing the last two digits in the house number.the same methodology was used to create the address code and block-level code for each record in the police and fire call data. There were 12,824 blocks identified in the City of Baltimore real property file. The police provided 1,103,091 call records, of which approximately 143,000 were designated as administrative (i.e., lunch, transportation, etc.) and thus removed from analysis. The city is armed with financial information that will allow it to pursue additional action in fighting problems caused by vacant properties. Originally, the analysis tried to match specific addresses to specific calls, but the Police Department does not always use the exact address and at times uses what it calls an implied address.that is the first two digits of the address number with either an odd or even designation to indicate the specific side of the block. To overcome this hurdle, the city s budget director suggested conducting the analysis on a block level rather than a specific address level. Due to data irregularities, however,not all records could be matched to a block.once all the quality checking was complete, there were 870,201 police records, or about 90 percent, that could be matched to a specific block in the real property file. A similar process was conducted on the fire data (although there were no administrative codes in the fire data). The original file contained 158,728 records, and once the quality June 2009 Government Finance Review 41

267 Case 1:08-cv JFM Document Filed 04/07/10 Page 13 of 13 of all the data was checked, 122,275 records remained, or approximately 80 percent. CONCLUSIONS While a great deal of literature generally estimates or hypothesizes the cost of police services associated with vacant properties, the Baltimore study represents the first time direct public-safety costs have been rigorously measured with statistical validation.using this analysis,the city is armed with financial information that will allow it to pursue additional action in fighting problems caused by vacant properties. City staff are currently determining what type of program to use an additional fee, fine (citation), or both to help defray the costs of vacant and unsafe properties. Whichever path it pursues,the city now has defensible data it can use to hold owners who allow their property to become vacant and unsafe financially accountable. BOB WINTHROP is scheduled to start later this summer as the senior business operations manager for the City of Portland, Oregon, Police Bureau. He has more than a decade of experience specializing in improving government operations.along with general government financial analysis, he has worked on projects for police departments throughout the country, including Saint Paul, Minnesota; Pittsburgh, Pennsylvania; and Long Beach, California. He currently is a member of the Public Strategies Group network and can be reached at bwinthrop@psg.us. REBECCA HERR is a consultant in the Strategic Consulting Group at Public Financial Management, Inc. (PFM). She joined the PFM team in 2007 and has worked with city and county governments on projects including arbitration support, workforce analysis, budgeting, and revenue generation. She has worked with jurisdictions including New York City; Philadelphia, Pennsylvania; and Baltimore, Maryland. She has a bachelor of arts in mathematics and economics from Lafayette College. Fees and Fines Many cities require owners to pay an annual registration fee for vacant properties. Examples include: City Fee Oak Forest, Illinois $200 Albany, New York $250 Chicago, Illinois $500 Wilmington, Delaware $500 Saint Paul, Minnesota $1,000 Burlington,Vermont $2,000 Minneapolis, Minnesota $6,000 Many cities use a progressive fee structure to minimize the length of property vacancies. For example, the fee shown for Wilmington, Delaware, is for the first year of vacancy.the fee increases afterward: $1,000 for year 2; $2,000 for years 3-4; $3,500 for years 5-9; $5,000 for 10 years; and an additional $500 for each year after 10. But often, cities also try work with owners. In Minneapolis, for instance, the fee can be waived if there is an approved redevelopment plan in place. Along with fees, cities institute fines to defray or recover costs incurred because of improperly maintained property by charging fines for improperly maintained properties. Examples include: City Fine Burlington,Vermont $50-$500 Chicago, Illinois $200-$1,000 per day Kansas City, Missouri $1, Government Finance Review June 2009