Dear Mr. Chairman:
We are writing to request authorization for travel and other expenses for a minority forum to be held in Chicago on the impact of the failures of banks and mortgage servicing companies to adequately maintain the growing number of vacant and abandoned properties across the country, with a particular focus on how these failures negatively impact state and municipal budgets. We would like to examine the situation in Chicago as a case study of this nationwide problem.
Pursuant to the agreement our staffs reached at the end of last year in consultation with the House Committee on Administration, we are submitting information about this forum for your review and consideration as a possible candidate for a field hearing to be held by the Committee or one of its subcommittees over the next two months. We respectfully propose Jan. 31, 2012, as one potential date for a field hearing should you choose to hold one.
Inadequate Maintenance of Abandoned Properties
On November 4, 2011, the Government Accountability Office (GAO) issued a report entitled “Vacant Properties: Growing Number Increases Communities’ Costs and Challenges." The report, which was requested by Committee Member Dennis Kucinich, found that an increasing number of vacant, abandoned, and foreclosed properties across the country are attracting crime, aggravating public safety concerns, decreasing the value of surrounding properties, and contributing to a loss of tax revenue. According to GAO, “non-seasonal vacant properties increased 51% nationally from 7 million in 2000 to 10 million in April 2010."
GAO determined that local governments have been forced to spend millions of dollars on vacant properties that are not adequately maintained or do not comply with local building or public safety standards. GAO examined data on vacant residential properties nationwide, including in Baltimore, Maryland; Chicago, Illinois; Cleveland, Ohio; Indio, California; Detroit, Michigan; Indianapolis, Indiana; Las Vegas, Nevada; Cape Coral, Florida; and, Tucson, Arizona.
In Chicago, city officials informed GAO that banks and mortgage servicing companies owe millions of dollars in fines dating back to 2008 for failing to secure and register vacant properties, among other violations. Local officials and community groups also told GAO that “they need more funds and increased oversight by federal regulators to ensure that servicers comply with local property maintenance codes."
Proposed Location and Panelists
We propose holding this minority forum or Committee field hearing at Malcolm X College of Chicago located at 1900 W. Van Buren Street in Chicago, Illinois. We have been in contact with school officials, and they have provided the enclosed quote for the use of their facilities. In addition, we propose the following panelists:
Panel 1
* Mathew Scirè
Director, Financial Markets and Community Investment
Government Accountability Office
* Andrew Mooney
Commissioner
Department of Housing and Economic Development, City of Chicago
* James Harney
Deputy Commissioner
Department of Buildings, City of Chicago
* Judy Frydland
Deputy Corporation Counsel, City of Chicago
* Bridget Gainer
Cook County Commissioner, 10th District
* Robert Fioretti
Alderman, 2nd Ward of Chicago
Panel 2
* Brian T. Moynihan (or designee)
CEO and President, Bank of America
* James Dimon (or designee)
Chairman of the Board and CEO, JPMorgan Chase
* John G. Stumpf (or designee)
Chairman, President and CEO, Wells Fargo & Company
* Josef Ackermann (or designee)
CEO, Deutsche Bank
* Michael J. Williams (or designee)
President and CEO, Fannie Mae
* Charles E. Haldeman, Jr. (or designee)
* CEO, Freddie Mac
If you would like any additional information about this proposal, please contact Leah Perry of the minority staff at (202) 225-5051. We look forward to working with you on this critical issue, and we thank you for your consideration of this request.
Sincerely,
Elijah E. Cummings Danny K. Davis
Ranking Member Ranking Member
Subcommittee on Health Care,
District of Columbia, Census
and the National Archives
cc: The Honorable Trey Gowdy, Chairman
Subcommittee on Health Care, District of Columbia,
Census and the National Archives
