Find me over there City of Chicago city council rules of
conduct are suing to the Chicago city council Rules of
Order and procedure rule 49. The sergeant-at-arms sense for
the following rules of conduct to be followed during the
public comment period and the duration of all committee and
City Council meetings rafain vulgar threatening abusive or
disruptive language is not permitted. It mean discrete.
Dory or harassing behavior and speech directed to Ward's
others is not permitted disruptive behavior, including
disruptive or disrespectful conduct during others
presentations is not permitted banners flyers or signage
are not permitted backpacks large bags and sharp objects
are not permitted clear bags not tinted in color that do
not exceed 12 x 6 x 12 will be permitted and are subject to
search food and beverages including in metal canisters are
not permitted cell phones must be placed on silent prior to
entering the meeting room.
Individuals must remain seated public comment speakers are
permitted to stand only when providing public comment small
handheld devices may be used only while seated in the user
must refrain from interfering with the view or hearing of
other individuals individuals or groups failing to adhere
to these rules will be asked to see such disruptive conduct
and failure to comply will result in their being subject to
removal from the meeting by the Sergeant at Arms.
Essence one
Good morning. Good morning. Everyone. Welcome to the
committee on finance meeting. Happy New Year to everyone.
This is our first meeting of the year.
I'm to get us started. Unfortunately. I have to read these
rules for conduct a public meeting. So bear with me
pursuant to the Chicago city council Rules of Order and
procedure rule 49. The sergeant-at-arms sets forth the
following rules of conduct to be followed during the public
comment period and the duration of our committee and City
Council meetings profane or vulgar threatening abusive or
disruptive language is not permitted demeaning
discriminatory or harassing behavior and speech directed
towards others is not permitted disruptive behavior,
including disruptive or just disrespectful conduct during
others presentations is not permitted banners flyers or
signage are not permitted backpacks large bags and Shop
objects are not permitted clear bags, not 10 in color that
do not exceed 12 x 6 x 12 in
Will be permitted and are subject to search food and
beverages including and metal canisters are not permitted
cell phones must be placed on silent prior to entering the
meeting room individuals must remain seated public comments
speakers are permitted to stand only when providing public
comment small handheld devices. Maybe use only while seated
and the user must refrain from interfering with the view or
hearing about
individuals
anyone failing to adhere to these rules whether you're an
individual or in a group will be asked to see such
destructive conduct and failure to comply will result in
their being subject to removal from the meeting by the
Sergeant at Arms.
Good morning.
The subject matter hearing on the committee on finance is
hereby called to order. This is a subject matter hearing as
required by section 2-30 2-4 hundred of the municipal code
to discuss Municipal depositories. No votes will be taking
during the subject matter hearing. We will now have a roll
call to establish a quorum.
vice-chair Conway
all the men with spider
Alderman Hopkins
Alleman Hall
Alderman Mitchell
Alderman Harris, Alderman Beale
Solomon Lee
Alderman Ramirez Alderman Quinn
Alderman Lopez
Alderman Moore
Alderman Curtis Alderman O'Shea Alderman Taylor Alderman
Mosley Alderman Rodriguez
Alderman Scott
Alderman Central Lopez
Alderman Burnett's Alderman Urban augment Taliaferro
Alderman Cardona alderman waguespack
Alderman Rodriguez Sanchez Alderman Ramirez Rosa and myths
are going to be admitted by remote.
Alderman Villegas
alderman sposato
Alderman Vasquez Alderman Reilly
augmon Knutson almond Martin Alderman Silverstein is here.
We have a form we have 20 members present. I'm Alderman
ramirez-rosa and myths have requested the remote
participation on the roof 59. Can I get a motion to allow
Alderman mitts and ramirez-rosa. So moved by Alderman was
Sparta to attend this meeting by remote means all those in
favor signify by saying supposed in the opinion of the
chair the eyes have it and the motion carries might like to
confirm that Alderman mitts and ramirez-rosa are present
and have joined today's meeting.
Project manager, good morning at this time. We'll begin the
public comment period the public comment period is limited
to 30 minutes out of respect for everyone's Time. Each
speaker is limited to three minutes. I will begin this
morning with Mercedes Pickett.
Good morning, Chicago all the members. My name is Mercedes
Pickett and I am here to emphasize the pivotal role that
Neighborhood Housing Services of Chicago plays in
transforming lies and the ripple effect that extends far
beyond the initial assistance for instance within my own
family.
Is that your mother raised a children on the west side of
Chicago after purchasing a new unit this Phenomenal Woman
ensured we were close fed love educated and protected
despite working multiple jobs in Endless hours Financial
struggles persistent after two decades of building
Generation The Legacy, my mother face challenges securing
assistance.
Turn down and found foreclosure. She found a random flyer
in the laundromat despite initial skepticism and rejection
from the other Banks this nearby location came through NHL
Chicago stepped in and connected her to a dynamic lawn
program.
With their guidance this long would transition into a grant
as long as she paid her Mortgage in the mortgage was paid
off.
That Lifeline significantly impacted all eight of her
children's lives and now her seven grandchildren. This is
why nhi Chicago's profound Mission should be the blueprint
of Chicago's and lending practices this opportunity created
a pipeline for my siblings and myself to purchase our own
homes on Chicago's west and south side as we received
educational support Financial guidance and Grand
opportunities because of this West Side Story I can color
Play with wieners share NHS as a resource within my own
organization volunteer at neighborhood schools as a field
expert and even launched my own data and data and Analysis
company. I can work here play here and pray here because I
live here soon. You will hear from NHS Chicago on the
significance of home ownership. So thank you all the
members for allowing me to highlight my experience and
nhs's critical work. Thank you advocate for a sizing the
importance of addressing lending disparities in having the
prowess to disclose the data and thank you to my parents.
Thank you, Mom.
Thank you miss picking for your testimony.
I want to acknowledge all the men Ramirez Alden and Mosley
and Alderman Mitchell have joined us and will be part of
our form. The next speaker is Roshana ball.
Good morning finance committee. I'm also speaking on behalf
of NHL Chicago. My name is rashauna Baldwin as a single
mother my mom bought her first home at 51 from NHS Chicago
and Inglewood years later 35. I brought my first home to
NHS Chicago with other Banks currently down some of the
same banks that I work through work at in Inglewood.
Simply because of a delinquent credit card payment when I
was a college student not because I didn't pay off the
credit card but a few late payments reflect on my credit
score on my credit report.
Although I had to help you save is a 10K on Time payments
to my student loans several years of consistent work
history and no other delinquencies, but a credit score of
650. I was still turned down. I wasn't good enough to
qualify for a decent mortgage and a chest Chicago who has
Common Sense Underwriters and house Underwriters who looked
at my entire portfolio so that I wasn't a risk financially
I was stable and had enough income to become a homeowner
with a simple explanation of why I was late on my credit
card payments as a young college student who wanted that
t-shirt for that credit card. I was able to qualify for a
mortgage to NHS Chicago a conventional mortgage because we
had common sense underwriter to look at my entire
portfolio.
Were most financial institution to have Underwriters to do
not look at your entire story and make quick decisions
based on algorithms and other numbers that don't make sense
in real life. I was able to qualify and my community of
Inglewood home ownership is off is often thought as as
others not achievable not for us too much of a cost burden
and oftentimes. We only look at renting as an option.
I'm proud to say that I get the chance to serve and educate
many of my colleagues Brands family members in Inglewood
community at home ownership is an option is Affordable and
is achievable NHL Chicago Peters Residence at home
ownership is achievable affordable with the right tools
resources education, no matter your story or what ZIP code
and it says Chicago has employees who work and live in the
communities in which they service NHS Chicago students time
and patience with clients who desire to build equity well
in value in their own community and it just continues to
support home on this evening after they purchase homes
through free HUD certified counselor training classes
Workshop seminars and even through the community building
in Resident leadership training program during the
pandemic. I want smell myself laid off at the height of the
pandemic without a job and a mortgage that I still have to
pay for through the knowledge services and support that I
received for NHS.
I was able to create a plan not miss a single payment
utilize the grants that were available continue to make
payment to stabilize myself through the free services of
NHS Chicago today. I can say I'm a proud homeowner because
of NHS and I enjoy serving and Advising and they check.
Thank you Miss Pauling.
Daniel Stanley
Thank you members of the finance committee for being
present and convening of subject matter on lending Equity.
My name is Danielle Stanley a long-term renter for 10
years. We transition to home ownership. Thanks for the
support of the Neighborhood Housing Services of Chicago in
2020. I began my home ownership journey by Rolling and
they're 8 weeks home buying education courses from there. I
learned the importance of a simile the right team thing
within a budget and investing in communities where I'm at.
My neighbor's look like me.
In 2021. I decided to actually look for a home and shop
around for a lender after speaking with lenders and
traditional financial institutions. I chose neighborhood
lending services to finance my mortgage because of their
lower interest rate and great and clothing grant program on
March 31st of that year. I purchased my condo in the 8th
ward in greater Grand Crossing.
A success story for NHS. I'm a staunch advocate for letting
tools like their agency to ensure more black holes
households. Can I own home?
Without letting Vehicles like the NHS more discrimination
will continue to play My People owned by your
discrimination can show up in the spirit of interest rates
additionally African-Americans are more likely to be denied
alone a study by LendingTree show. The black households
have the Nile rate of 17% vs.
White household
antenna left I qualify for conventional loan with an
interest rate of 4.75.
I have to buy my home. I join NHS Metra board to show
others. They too can achieve homeownership nhsn powers of
clients through education and financing which a return
stabilizer Revitalize communities that have been
systematically does invested in we have done beautification
projects in Inglewood. And how's the circle housing fares
on Chicago's South and West sides?
Image of the Box because they need people where they are in
our closing the racial wealth Gap through homeownership. I
appreciate you all for taking the time to listen to my
public comment. Thank you.
Thank you, Miss. Stanley Thurston Pickett.
Okay.
George Blakemore
Morning, Kim.
I'm watching the car.
That's what I do, I'm focusing on this clock when I get up
his paw crunch real quick. Anyway, he was done with
Finance. But I suggest you you chairman Chase Bank in these
other bank deposit their money and deposit that money in
that bank to help or black people. Thanks been realizing
the black community because they help a weak leadership.
You should emphasize that if these Banks don't invest and
give loans in these black community in the city of Chicago
will not deposit their money. They're becoming since it's
not coming anymore. And you agreed now these rules you have
no rules here is not an elected official. He has no power
to make room for you all the ultimate to make the route.
So real I know I'm up in bed and then you came up and said
three minutes and when I was in the meeting the other day
with this man Bell St apt 2 minutes, and he said one minute
and then your dog me out like a Georgia trade and have the
police department to do it. So you can turn your head all
you want I got tonight.
God. This Mike
So I heard you listen. I'm talking to the trailer both of
y'all sit down.
While I'm talkin bout some respect here.
Who do you think I am who are you again? I heard you to
invest the CD money and Finance in banks that do not
realize.
Black communities Englewood she talked about y'all still
want to talk about the Westside. These communities are
being gentrified out by black people moving out, It's by
Design with Finance, but other people are moving in.
So is something wrong with black leadership here and I
signed up for this committee is just matter and I
Thank you. Mr. Blakemore. Our next speaker is David
Schroeder.
Iwom is the shortest coming to the mic. I want to
acknowledge all the men Taylor Alderman Burnett and all
them and see Joe Lopez has joined us and will be counted
towards corn.
and all the way Martin
Yes, mr. Schroeder. Continue. You can start looking
Schroeder. Good morning and thank you for inviting the
community Bankers Association of Illinois to participate in
this hearing that way of introduction. My name is Dave
Schroeder. I am CBA is Vice President of federal government
relations prior to joining cbai. I was a community Banker
for forty years in the greater Chicagoland area this year.
She be a I will be celebrating its 50th Anniversary. We
exclusively represent the interests of Illinois Community
Banks. We have nearly 275 members in all corners of the
state Urban suburban and rural areas. The Hallmark of
community banking is servicing the needs serving the needs
of local customers, including individuals and small
businesses and their local communities including
municipalities.
Deposits are a source of liquidity for Community Banks
money, which they lend individuals and small businesses in
their communities deposits come from a variety of sources
within the community including individuals small businesses
and municipalities. There's typically a cost including
paying interest and other responsibilities together
deposits in the normal course of business to the extent.
The cost is high or the process is burdensome for there are
lists of onerous requirements at deposit source of
liquidity will not be as attractive as others the process
or burden including unique requirements conditions or the
sheer volume of paperwork balls particularly hard on
Community Banks versus the largest banks.
If the city of Chicago Pines Community Banks a worthy and
is interested in having them as Municipal depositories. We
hope that you will be particularly mindful of the burden on
Community Banks in establishing your requirements for them
to participate. Please simplify the process of being a
municipal depository for Community Bank. Thank you for this
opportunity, and I look forward to answering any questions
that you may have. Thank you. Mr. Schroeder on to begin our
hearing today were joined by our city comptroller Chase
Railway Co
From the Department of Finance in our city treasurer Melissa
conyears-ervin from the City Treasurer's Office. They will
give a presentation and will be followed by presentations
from NHS of Chicago Woodstock Institute and the Chicago
rehab Network Chase.
Thank you Chair by Cher Conroy's Conway members of this
committee. I'm doing something unusual today for the first
time since ever appearing in front of any of these bodies.
I do not have written remarks and that's because I'm very
excited about me to spell depositories. Most of you know
that I have a banking background. I'm very interested in
banking. I'm here just to give a brief history on why we're
here and to talk about it and why you should be all so
excited about this. So Banks themselves are that it's the
circulatory system of the economy and many of you have
heard me say that before it's taking stagnant money in the
form of deposits and putting them into Investments
communities that do not have access to those those Capital
investments from the banking system. They're not able to
succeed in our system. So it's important when we're
thinking about the banking system as a whole on where we
have the levers within our Authority and our power to be
able to influence some of those changes.
Have a community that does not have access to banking
products. They don't have access to their own funds. They
have to use Check Cashers things like that even access
their paycheck that's paying a percentage even have money
that they weren't and then it's hard for them to get small
business loans student loans car loans home loans. And so
without those sort of flow of dollars. It's very difficult
for us to succeed and here in the city of Chicago. We have
many ways where we influence those sort of policies. We
want a product of programs in which we spend money to
increase housing increase access to different types of
letting mechanisms Etc. But the one the other piece that
sometimes we forget about is that we are a large economic
engine. We have a lot of money that flows through the city
of Chicago naturally through our standard programs where
we're receiving receipts fines and fees taxes, and then
we're placing it where Investments through the treasure
Or we're spending money in those periods of time where
where there is necessary for us to make deposits and those
deposits can be significant huge amounts of money that are
that matter a lot to the institutions that are having those
deposits, especially when they're smaller institutions. Now
over the last 20 years. We've seen very low interest rates
and as a result may be our deposits went as valuable as
they once were cuz money was cheap to a lot of
institutions.
The country plus interest rates has risen and we had a
faltering with the tech Bank Silicon Valley Bank are public
deposits have been coming more valuable, which is why I'm
excited that there were fifteen request from Banks to get
here though more than last year by 4, which gives the city
treasurer more leverage when she's determining where to put
the public deposits. We only had one Bank in in the system.
The treasure wouldn't have a lot of ability to show
influence when doing deposits should have to make the
deposits with that bag of these larger larger work diverse
institutions that are coming in we have some small
institutions. We have some large institutions. It allows
the city to have more influence going forward with our
deposits as well as our other programs now State the state
has been doing this for a very long time.
1983 they've used the public deposits of the State Treasury
to make linked type lending through the bag of this program
that's only excited at the possibility that we have going
forward as interest rates rise and our deposit has become
more valuable and we have more institutions it also is it I
appreciate having the ability to go from from an Albany
bank, which is a Community Bank in actually my neighborhood
that handles that low.
Community all the way up to JPMorgan Chase the largest bank
in the United States. It shows that there's a lot of
different options and interest in the city deposits and I
look forward to answering your questions around this
program this exciting program. Remember everybody should be
excited going forward. So with that I'll stop and cats.
Wow, okay. Good morning. Thank you so much Madam chair and
members of the committee on first I want to say because I
know we have some new Alderman in the room. I am happy that
the body this body the city council. This has been a very
important topic to the point that this hearing that we have
today is actually knew so this is not something that city
council has been doing for a number of years it is because
of all the people like you that have voiced concerns that
because of that this is why we have this hearing so I want
you to understand how important your role is. So I do want
to thank you for that. You hear Chase excitement because
this is something that's not only important to you, but you
should know that it's important to us because at the end of
the day we are the ones that's operating within this realm
daily on your behalf. And for the taxpayers of Chicago do I
do have prepared?
Because I want to make sure that I do not forget some
important points that my team in the treasurer's office
really is doing and I want you to see how important this
Municipal depository process is and how it transfers to the
local residents. I'm so a lot of people know that two
primary functions for me as Treasurer right to ensure the
preservation preservation. I've always get tighter and
preservation of principle and strategically setting
thresholds for maintaining adequate liquidity. So that the
city can pay his bills. That's number one. Number two. We
do want to make sure that we have the highest risk adjusted
return but the third objective for me is something that I
take very seriously and that is providing Financial
education programs to help Empower Chicagoans to help them
build sustainable wealth and a brighter future now in 2023.
I was so excited.
That is Choice mentioned albanii bank that is a considered
a Community Bank and because of this Municipal depository
process my office was able to invest in million dollars in
Albany bank that is a huge difference or a local bank. And
what they do is turn around and invest and the residents of
the community and throughout the city. Albany bank is
making resources available to individuals and small
business owner.
And this and this invested and under-resourced communities
in need of commercial and residential development. Now
another way that we promote an economic development was by
bringing resources from Community organizations and
financial institutions together for all Chicagoans. We
created the empowerment scholarship program. Thanks to the
support of banks like when trust as well as a new bank on
your list today first Eagle, which is a new Community Bank
on your list for consideration today. And also we've been
working with GM Bank as you know, what a 90 year old black
owned financial institution and Amalgamated Bank of
Chicago, which has been serving Chicago's unions and its
members for over 100 years things to Our Community Banks.
The treasurer's office award at 10 Chicago students
entering College For the First Time $5,000 in scholarship
to help with their
fences that is through the partnership of those Community
Banks in addition to the scholarship program the support
from the community banks with instrumental and our launch
of the spin smart eatsmart initiative at senior centers
throughout the city and other Financial education programs.
We have in place like wealth Wednesdays and the financial
youth education and empowerment Symposium. I want you all
to know that the Community Banks are excited to partner
with us.
To provide resources to our residents. This is why this
program is so very important. So I'm happy to share that
through all of these programs that we have two-thirds of
all participants in our financial counseling and credit
repair programs have raised the scores of residents to
Prime levels. What does that mean? That is the score at
which lending becomes affordable for most borrowers to be
able to purchase a home over the years. You've had me heard
me talk about the advancing equity and banking commission a
program. We've been working with State Treasurer farax on
that program continues and Banks come before us each year
to talk to us about Investments that they are making so
even outside of this body. We are holding these
institutions available accountable. Also, we had our
building well today for tomorrow huge Summit where we had
as you know, Magic Johnson came in and by the way, we have
some Snippets that we put out.
Regards to that session Magic Johnson provided some real
Financial Empowerment nuggets where I think today we
probably have almost 100,000 views imagine the lives we're
changing because of this information. We're providing to
Residents. So thank you for what you do. I do think you
chairwoman down for having this session or today and all
the members of committee. I appreciate the partnership we
have with the Department of Finance Chase.
Just got into this role, but certainly not new to this
program and what we do now, it's all so I'll say this to
the newer Alderman. This is not been a part of the process
where the treasurer in the past has been a part of but when
I became the treasurer, I thought what sense does it make
for us to not be a part of this process is not help Banks
to apply and then we are the ones that end up working with
the bank's anyway, so it's important for us to be at the
Forefront so that we can encourage Community Banks to
apply. Thank you so much. Thank you treasure Conyers Irvin
and to our comptroller Chase when we go we're going to take
questions to these two on what you've heard this morning
followed by a presentation from our Advocates who want to
speak to us about Municipal depositories. Do I have anyone
that have questions for these two will start with Vice
chair?
Conway
you going to wait till after all the presentations?
Well, there's meat and potatoes here as well. So you can
hold it to the next session and it's fine to buy share
Conway followed by alderwoman Taylor, but I can acknowledge
Alderman Curtis has joined us and we'll be counting towards
form.
I think this is a meeting potatoes question and I don't
mean as a stumping when I'm just trying to get a
directional idea of how big a decision this is about.
What is roughly the average daily deposits of the city and
the Board of Education?
It's Benson.
Did you say a city in what the Board of Ed cuz it says
Municipal the part. That's that's what's written on the
agenda is Municipal to buy stories of City of Chicago in
Chicago Board of Education. So so as of today we have 247 /
247 million dollars and deposits in Banks.
Oh and that does include the Board of Ed Z. I'm sorry 200 +
47 million dollars. That's the if you want the exact down
to the penny I can give you that the 247 is that does that
seem like it's a normal rough average amount or it's a word
this a different time than usual.
Yeah, it just kind of depends to be honest with you because
it's the interest rates as you know, you're I'm as an
investor. So it just really depends were looking for the
highest risk-adjusted return that we can in our office. And
so it depends on how much the interest rate that's being
provided by Banks versus Tarara broker-dealers as well. As
you know, we do both and there are a couple of days
throughout the year where Revenue comes in all at the same
time. So those are slightly those get slightly higher but
those are outliers and they don't really impact. I will
just look for something directional. Thank you madam
chairwoman and thank you Mom by swarmin Norman followed by
all the data and Alden Hall. Thank you. Madam chair. Is it
possible for us to get a map to see where these banks are
located because we do business with Chase and a bunch.
is Mike's that are listed a lot of them won't set up in our
communities which is why we got check cashing places and So
currently in the 20th Ward, we we don't have a bank and we
had a bunch of check cashing places that prey on our
community and take our money and so for us to be depositing
our money in these Banks, what are they doing for
communities that are disinvested in and going back to what
the young lady said about getting I can't get a car loan
from any of those companies and I Bank
Actually back with BMO. So I'm I'm I'm getting a higher
interest rate getting it when I have to go to the car
dealership instead of me being able to go to my bank. And
so what are we doing to make sure that everybody is being
serviced by this bank and we can't ignore that chase has
this big thing about not lending a Stihl Redline into the
black community. And so what is the thought process about
us still using them and about being open to smaller?
Because none of these that you listed are small local banks
and so we're making other folks Rich while we get nothing
in the city all mine. So you're definitely preaching to the
choir and how do we even have our residents get out of
debt? If all they're being provided as high interest rates,
how do you ever get out of debt if you're paying more? So
to me that makes absolutely no sense. I agree with you
which is why
What I do now since I've taken office is to make certain
that I reach out to smaller Banks personally. So one thing
that I've been saying each time I come before this body. If
there are banks you want me to contact please give me their
information. We will contact them personally. I want them
to apply. So we do have three new Banks this year all the
woman which is first Eagle Bank. That is a Community Bank
GM bank and Amalgamated Bank of Chicago. Those are three
banks that are new this year. That is important.
Okay, I'll see now. It's first first Eagle Jen and winter
stay the night with us to my list wintrust. Thank you went
Russ also, and the reason that that's important is because
a lot of banks in the past have felt like they were not
welcome to apply. And so these hearings are important
because we know they're listening and we want them to know
that it is a new day in Chicago. And so we've been asking
them to apply we've also worked to streamline the process
that I'm applying is not burning some because if you have a
large Bank compared to a smaller Bank who don't have a lot
of resources, they don't even understand the application
process to becoming Municipal depository. So please know
there's a lot of things that go into this and over these
past four years. We've worked to make changes. Now that
chase is here. We going to be doing more changes. We work
closely together on this application process to your point.
And all them and I'm really glad you brought that up
because I think the the heart of this is utilizing not just
the spending of the city, but all of our resources to make
sure we're making a better for communities and and you know
you and I have talked about it some other items where maybe
it's not public deposits, but there could be other things
of in this itself is showing as an example of things that
we can use to incentivize Banks and other institutions.
Chance to provide resources in area but it's also where else
in the city no property things like that that we'd like to
look at to make sure that their institutions and all of our
communities and the City of Chicago. So one of the things
that I don't we don't have a conversation about enough is
those Payday Loan places and they exist. You know, what
they exist on how are you have somebody is there some data
there were looking at to show what we're paying at the
played a loan places and the the check cashing places cuz
those institutions aren't in our community and they've
gotten over four decades and we seen we don't see them
invest in our community is so if you we we always have this
conversation about a public blank bank, but it's never went
anywhere and the amount of money that we are investing in
some of these places that want investing us.
I don't know why we continue to do it. It's like it it's
It's insane and looking at you you talking about having
credit to buy a home. That's the reason why the majority of
us don't buy one cuz we got these payday loans where they
they know you need the money. It's like they connected to
your account. They know you need the money so they can
start texting you instead of your emails, but there is
nothing for us at these major banks that you all have
names. And so how we're preparing our communities to say
because y'all people love saying that generational wealth
is to housing. We ain't never going to get there cuz we
can't afford the loans.
Yep. Let me let me say this. This is why this is very
personal to me because I'm born and raised in the
underserved community and understand absolutely one of the
things that I've worked on as treasurer for me is to come
outside of these while the city hall and get into the
communities and financially and power residence because I
know that if you come from a community like ours you cannot
just walk it shocked me. Some people actually can choose
any bank. They want to walk into and get along.
To me where I come from that is shocking to some people
depending on what community they come from. That's not
shocking. And so there is so much education and hearing
such as this and it's actually even good for the body
because you all are so different you all come from
different walks of life. Some people can walk into any bank
they want and get whatever laws they want. Unfortunately
when you come from underserved communities, you don't have
that benefit. And so I understand that what I want to do is
take away the excuses of the bank. I want to help increase
your credit score. I want to help you prepare the purchase
that long because I know the excuses that exists I agree,
but I have to help and by the way any residents that are
listening, please go to our website. We have free credit
repair program free you and I both know people pay and and
are taking it.
The Java programs like that. Also all the women Taylor
Woodstock Institute has been a leader in the predatory loan
prevention act. They just released it again shredded Tori
loan from the company Woodstock Institute. They're here
today and they're here today. So I'm going to ask them as a
part of this to give of a minute presentation. They were on
wvon this morning talking about that about the impact that
that's had on predatory loaning loans in Illinois so we can
get to that. Did you have another question? Is there an
opportunity for us to deposit our money at other places
because you all think about and this this this a respectful
disrespectful Chase, but y'all ain't showed improved to
communities of color that you want to be there. Do you know
why I want to see a map to where these Banks actually lie.
And where the most of them are because
Don't even set up in communities that look like mine. So I
wanted to be found. So I want to say this and I and I'm
just going to just say this because you brought it up not
me since you mentioned Chase I mention 247 million dollars
we have in deposits.
2 million of that is in Chase.
I want to be very clear 747 million dollars in deposits.
2 million is in and what does the city get back from having
2 million dollars into Chase. So before I took off this I
don't even want to tell you how much money was there. Okay.
I'm just I say that I got it clear. I did want to so I'm
really glad we're having this conversation about predatory
loans and I can do it when I'm not the bank regulator for
the state. I'm in the Comptroller cuz I will say yeah
Horatio's laughing over their head of the Woodstock
Institute. We work very closely together on predatory
lending. I'll tell you my personal opinion is I don't think
it has any place in the city of Chicago. I can't really see
a reason or why some people say, well those people can't
cuz they're not good credit risk. Well, then our products
need to meet them where they live and there have been work
in this area.
Play the predatory loan prevention act which caps interest
rates for all these institutions at 36% and they still
complain though. That's that's too loud. 36% pretty high.
There's not very many banks in the entire country that will
little end at 36% So so it's something that can be can be
done. The other part of that is expanding products like a
bank on and in
Which I know that you're part of and I've been part of on
the state where their products specifically for the under
and unbanked where they where there's no overdraft fees. No
remittance fees. No minimum deposit fees things like that.
We're pushing to have those products for those individuals
so they can be banked. And now we're at apart or we have
higher interest rates banks are interested in public
deposits and we have these new tools. We're we're tapping
some of the predatory lenders and we're providing tools for
you know, the under and traditionally unbanked and that's
where we pull it together. We are now, we're at the point
where we you should be working very hard at all of our
resources to pull it together and I'll say why Chicago
should work harder than any other city in the United States
on this.
Redlining came from a professor at the University of
Chicago. Now. I'm not I teach University of Chicago.
There's nothing against them. It was economic thought that
came from the city and economic thought that was that was
not ideal obviously, but protesting the hmda the CRA all of
that federal law also came from Chicago from organisers on
the west side and in Chicago to push back on those rules.
We lead as a city on lending. We have the smartest
Economist in the world.
Set the universe Chicago and Northwestern and we have some
of the best community organizers around this field in the
world and they need to come together with us to make sure
that we're we're at answering this issue because like I
said, it's the circulatory system the economy. This is how
we get Economic Development everywhere. And lastly I'll say
and my staff will ask me to please make this plug you all
are closest to the residence. We have a lot of programs
that we offer for free, but it's hard to get that
information out to Residence. You all are the closest to
the residence. Please pass along all of this information.
If you see stuff on social media emails from us, if you're
not getting our emails, please let me know. I want you to
let your residents know all of the benefits. We have B
because their residents of Chicago
Thank you. I just want to acknowledge. I know she's been
dead. But you mentioned all the pass Advocates. I just want
to throw out the name Gail cincotta. Remember her alderman
laspada?
I will buy all the Munhall. Thank you so much better than
Siri. I said there were no potatoes. But I was looking at
the wrong menu. When we bring more Banks into the pool
increases our leverage increases how we can use our
influence. How are we using that influence? Because in the
past term when we talked about this work we were told about
5 bucks in the box and also by all the minnows to man who
was responsible in part for the ordinance that leads to
hearing some data like we're about to discuss that not only
were we do this year but through the Judiciary through the
legislature barred from sitting requirements of our minutes
about the Cars toys, we weren't even allowed to set
targets. So maybe that has changed but what does it look
like to use that influence the change rate when I could
yeah, I will say from a what can be and can't be Municipal
depositories. That is obviously there is a legal barrier to
some of those I will say that did the city the city
treasurer has the discretion of utilizing anybody on the
list and part of that discretion is investment
discretionary so and making decisions that's partially how
you can.
Use your influence. You are technically depository as you
heard JPMorgan Chase has two million of the 247. I'm sure
they would like more than the 247 butt and doing that you
have those conversations. Well, if you would like more than
I would like some more Community investment II that I think
that is something that can be looked at their other items
that I think we would like to work and and workshop through
things with the state do through there like deposits and
other items where where you can have more influence with
our deposits. I don't know how to set function at the state
level and how does a CD of fire bank that you partner with
noodling deposits differ from what their participation
around mean in sports.
What stores would look like?
Yes, that's two questions. So we'll go through so link
deposits how they work on the state level a lot of states
use these so basically it's a it's a it's a it's almost a
contractual agreement through a type of investment vehicle
called a time deposit. So time deposits are used in
individuals companies say we're going to negotiate a better
interest rate because we say we will keep an outsized
amount of cash in a bank depository for an extended. Of
time in the bank knows exactly when that time is up. So to
them it's more valuable. They know when that deposit is
coming in. Where is supposed to have a clean depository
account? You can take that money out whenever you want to
write so traditionally when you have the time deposits
companies would negotiate them individuals. The bank would
be willing to give a higher interest rate because that's
more valuable to them. What states have done in some other
locations and this is not all
it's been valuable because of how interest rates change
their saying great. We're not that interested in the
interest rate components. We will negotiate a time deposit,
but we would expect you to land into this sector or this
area that I can't be specific necessarily they lend to all
of it was father, right? I think we would like lending in
this region because that's not
Getting the economic activity that you want. Now the choice
of the institution is to say whether or not they would or
would not participate in that program because it is an
investment component to them. They will be examined for it.
But over the years the idea had been we can utilize the
negotiation structure this time deposits to provide a
little bit more incentive. I can go through the history and
that's probably a longer. I don't have time for that part
where it's sometimes it's invaluable and sometimes it has
that's the goal like
I want and it's not just about home lending. It certainly
is about that cuz I remember 8 years ago. My experience was
not much different than the people in this room based on my
income based on the table that I walked up to you in my
college when I was a freshman lovely t-shirt High interest
rates. Do you know and then when my wife when I were buying
our first home, they wouldn't even let me be on the
mortgage with her even with what my income was.
It doesn't know I'm an outlier. I'm a not letter because I
can look at this and it doesn't shock me because I know
that this stated that we're looking at today and we're
going to discuss even better than it was four years ago.
And it's the first started talking about this but it's
about home lending is both small business lending. It's
about retrofitting in Energy Efficiency. I am looking
forward to the broader conversation on lamp deposits
because I want our our public money to work for public
purposes. So that that's an exciting thing to dig into you
later in the year, but I appreciate the conversation
starter. Thank you. Thank you. All the man was Sparta and
please remember we have three other presentations on this
matter, which I know also generate some questions, but
we'll move on to Alderman Hall filed by Alderman Lopez.
Yes. Thank you so much Madam chairman. I'm going back to
our treasury you mentioned some different levels in the
deposits Chase to sew million supporters on those levels of
the deposits are those
Readily available to us to Liberty Bank and Trust 1 billion
in total assets oneunited Bank 684 Carver Federal 671
Industrial Bank 600 million citizen trust 506 million
Broadway. 488 City first 367 The Harbor Bank 280 Citizens
Savings and Bank 173.
National Bank 667 million in assets. So what I want to do
is provide you and your office with the list as well. Mr.
Controller of all the black Banks got a managing assets
don't know that we said state but these are National Banks
and we do business with National Banks as well. So I just
want to provide especially for the record these black banks
that are moving big assets that maybe we can look at
providing to my house and she brought that up. Thank you
and I hope they're listening. I would love for them to come
to Chicago. We do need for them to have in Chicago address.
By the way, the closest bank to us geographically that you
mentioned is Liberty right now. Liberty is looking just to
let everyone know they're looking to open up a Chicago
location because right now and we know Liberty Bank
Services many of our residents, especially on the west side
because they're close to it. But unfortunately, we cannot
provide deposit to Liberty because they do not have in
Chicago location.
To help in the search in the start of act like you so much.
Thank you. Maybe a question to Spanish.
And maybe a few others who represents a program that wasn't
Institute in 1983 that the city of more or less would like
to follow. Can you expand? You know some of the
opportunities and challenges maybe with this program will
expand a little bit more on the on the interstate program
in front too much because there's a lot to be discussed
around around that program. I was just using it as an
example of where public deposits have been used in the past
to help with the fact that agricultural loans have a
cyclical payout. So there's a period of the year or Farmers
tend to have a lot of cash and appeared of year where their
cash light the idea was to use the public deposits to
create lending. That was low it low interest for those
areas obviously in Chicago that doesn't make as much sense
because we don't have the same agricultural items.
The state has used that for other items as well. And I know
that the city treasurer has looked at, you know her
deposits going forward the problems with some of those are
interest rates aren't always that High when they're lower.
It's not as valuable for institutions to be able to
participate in those programs. So it's it's part of a
basket, you know, this Municipal depositories are part of a
basket of tools to try to provide.
Add additional lending to the city of Chicago. Everything.
We're definitely going to be looking at lots of other items
as well and and had been in the past but it is what 112 on
the tool belt. Thank you. That helps a lot. I think Mike
might question around the musical depositories.
It is around there. Maybe we pretend around housing in
particular right? I know that we know we had some of the
some of the banking institutions 2% in the accounting, the
last Administration like the challenges right now as we
see, you know, empty properties foreclosures right
inventory that it could meet the demands of people who
Chicago I will follow up with all the women Taylor Mansion.
So it would you kind of fifty million dollars, right that
is used today so that these banking institutions make more
profits not a Saturday is at 4 in a focus on the
profitability for the city. So I do think that Mary is the
question is what does these banking institutions are doing
reasons for the housing issue that we have? What are they
doing with foreclosed properties? I don't think any of us
and especially Chicago's don't benefit by having empty
property is not producing a tax base.
In exchange for the 250 million dollars, right?
That they are using to generate a continuous cycle in
particular in housing why we kept seeing these institutions
engaging with and what else can we be proposing so that we
can generate benefits for Chicago? And so let me say this
is my mother was such a God Rest her soul with my money.
This is what you do with these dollars, right? So as City
Council Members, this is this is your money that you are
the custodian of on behalf of taxpayers their questions. So
I would suggest this Alderman into the chairwoman dial. Why
don't we bring those Banks before so you ask those
questions like Siri,
I support that.
Because I can't answer those questions for you. Right but
they should be here to speak before you because these are
our dollars that we are investing and they should be held
accountable. Thank you Trish. You're welcome. I think that
it'll be important in the last year alone with these that
because these are $2 right there could be used to address
issues of Anoka Meats waxing residential and Commercial
credit mean right now access to Capital is almost to near
impossible to people in the city, especially considering so
love to partner with the finance committee to make to make
that happen and finally gets what are the Alternatives we
have a new thing that we have had these institutions in
front of us. Sometimes it feels like there's not a number
of choices we sing us.
Community Banks having Carter a car a car too hard a time.
So I will welcome, you know the support to Community Banks,
and also looking again to the public Bank option so that we
can put these dollars on the communities as well. So I do
want to make note that while we do want more progress
progress has been made and I and I don't want to overlook
that in the past. I remember when I first took office four
years ago Community Banks did not apply to be Municipal
depositories. We have three this year that is not to be
taken lightly. So I do want to make certain that you know
that that we make that clear for the record and we are
inviting other Community Banks to please participate. We
want them to we want those banks at all to Munhall mention.
We hope there listening or someone that's listening to have
contact with them. We would love for them to come to
Chicago. Thank you. Thank you. Thank you all and see Joe
Lopez.
Mostly followed by all the men Mitchell. Thank you. Madam,
Sharon. Thank you treasure and controller for this hearing
today. I live in the 21st Ward is just a bank Rich Ward. We
got a lot of diversity of income throughout and I'm just
looking at less in the sea. So many great ones that have
done great things and 101 and courage that does we take
this move which I expect to see them more banks are open up
throughout the city of Chicago.
In our Ward that we really built great Partnerships with
them and get those folks who are the sea Suites to be on
the streets of our Ward servicing through different boards
and nonprofit to have that better relationship when we talk
about what's happening with a vacancy rates throughout our
Wards, like that's an opportunity to explore and figure out
the tools out of there to bring them back and actually
provide some Capital we talked about development that Ivory
Alderman Works to do if you have to have a great partner in
your bank, so there have been great Partners like wintrust
Bank owns Beverly or appointment Beverly and Foreman bank,
but has made the commitment to the 21st Ward to stay when
so much of our folks have been pulling out of the war. So
thank you for bringing this to our attention and moving its
4. I do want to see folks like United Fidelity Bank that is
in the 21st Ward join this list. I have to shout I'm too.
Associated Bank wedge my wife and I we were able to get our
mortgage or our home is a young age of 26 Bank of America
is in the 21st Ward BMO Harris Fifth Third Bank PNC
Huntington Bank in again when I so thank you. And by the
way, I said three and I meant for I keep forgetting because
my list before me is incorrect. It's not 3 it's for new
Banks this year and they're all Community Banks you all
these are not bigger Banks Community Bank.
What bank did you say because I want to make sure my staff
heard that name United Fidelity. Thank you. All the men.
Please. Let us know all the people banks with that's not on
this list. We want to reach out to them.
Thank you all and Mosley and he raises the question in my
mind treasure or chase controller when you only have banks
that have expressed an interest in locating in our
communities branches and as Alderman, we have some leverage
over for example Ali access or driveway permits or zoning.
Even where can we turn to get some assistance on the things
that we might ask for so my office will be the office that
interact with banks on a daily basis. So because once they
were new all all the people, once they go through the
process of applying which is with Chase Department of
Finance, then at that point, they're turned over to our
office and we work with them daily.
I would love to have more public-private Partnerships. This
is what it should be about investing in us. You know, I
don't like one side of relationship if I say that all the
time. I do not like one side of relationships. And so we
don't want to deposit into banks that don't want to invest
in us we do not want to do that. We have shown these past
few years. If the message has not been received hopefully
by now, they'll see our deposits will continue to decrease
if we do not see investments in our residence. We mean that
we're standing on that what that being said wonderful
question chairwoman if there's anything we can do to
facilitate those conversations because we have contact with
each Bank. This is what you all should be doing. This is
what you should be asking for. We can help facilitate that
you'll be hearing from me all them and Mitchell followed by
all them in Irving.
I'm having a little problem.
What is the actual benefit of a bank accept an aadhaar card
deposit number one hit in cruise that increases the access
that they have on their management and that ain't that
provides money begets money as we know but also there are
stipulations to have enough money. Right? It's almost as I
called double secured because it's not only fdic-insured,
but it's also collided.
Station that we talked about a lot which for some banks
like smaller Banks and I don't want to get into this is a
oh my gosh, it can get it to a long long conversation. So I
want to try to hit this butt move on. We have worked on
lowering the collateralization in the past. So smaller
banks will be able to apply and be a part of this process
with that being said that it also helps them because they
are able now to lend money but the benefit is they make
money off my money, you know that right right, so that
that's actually the only thing I'm saying so so what is the
relationship cuz you mentioned you might not have that
information. What's the relationship between the money that
we have on deposit with them in the money that they loan or
bring back to our neighborhood in very specific? I mean our
neighborhoods where we've identified. There's there's a
need there's there's a housing problem as a homeownership
problem not information that scattered throughout Chicago
about black.
Hispanic more, what's the what I'm looking for a
concentrated effort between the money we have a deposit and
money that goes into are so I will let Chase answer this
because that's the application process. But let me also say
that is important because when we talked about Community
Banks ottoman Mitchell let you know the larger the bank is
that means our money is everywhere is you know, and that's
that's another reason why we focus so much on community.
Supply because we know that that money will be reinvested at
the bare minimum into the city of Chicago. But then you ask
about more down to the local level. I want to hear
investment looks like because as you mentioned earlier, the
only thing I see is, you know, they get a job opportunity
to lend money or do they is there any stipulations that the
banks have with me to support deposits versus thunderman
that they get in there? There's one other item to that's
very important. Now that is different from even last year
with why Banks would like our deposits so when Silicon
Valley Bank failed that bank
Caused a lot of banks needing to secure their deposits
where a large depositor. So well, you know, it's good to
have individual people that have $20,000. Maybe that's a
lot of money to them. That's not a lot of money for the
Banks deposit. They need a lot of those in order to make
sure they're secure and there isn't some sort of run on
their asses. That's so public depositories became more
valuable to Community Banks when there was this movement
from from money from smaller Banks to larger Banks and they
needed to have that backing by large Public public
institutions that that money wasn't moving the other value.
For Community Banks is almost by definition their lending
to the community. They have a smaller footprint by stand on
our list right now. So Albany Amalgamated first Eagle GN
and and Winterfest which is kind of a hybrid they all went
directly into their General footprint. So that adds more
value there now, we're thinking about other items and
that'll be something that have to walk through with the
treasury's Investments on other items to be able to connect
those. Like I said was linked to posits gone.
I know we had a long day so I can yeah.
I just we need I need information because
Whitworth with sounding like that, you know by having our
deposits on with this bank that that that's this great
thing that the city's doing but I don't I from where I
stand from where I stand I only see I see some benefit of
the bank I see no tangible benefit that I can in our
communities. So when we get up here and we I need I need I
need more. We also make a note of that because when we
talked about bringing the banks before us that's a fair
question to ask to also see for these banks that we have
deposits put those banks that have in Investments are
What involvement of what benefit do they have to be City in
the way of bond issuance or any any type of investment that
we do? I want to see if their benefits? I don't want to
make it seem like, you know, they put money they accept our
deposit and then they feel they're on deck to be a part of
any bond issue. It's only financing efforts that the city
has. I don't want them to seem like they're doing us a
favor. So I need that information. So that seems to be be
there is some thinking out there that this issue is really
miss understood that they're actually doing it's more of a
headache to them. Yes, because I'm that it is to be part of
this program because really the benefit is in probably
being part of our bond deals on our
Other programs we need to move on because it is 11:10. And
we do have three presentations from Advocates. And then we
have a finance committee meeting Solomon Irvin in Burnet
and Vasquez. You're up next and if you could keep your
question short.
Oh, I'll pass could ask yours later.
Alderman Ervin, you're next.
Yeah, thank you. Madam, Madam chairman and Madam Treasurer
and controller. So I just had a question and I don't know
if it's relevant to what you all were talking about. But I
know some of the larger Banks don't they give us a line of
credit do we get lines of credit from some of those banks?
And can you name some of those bags that we get lines of
credit from? Yes, we do get lines of credit from a large
Banks like JP Morgan and BMO have given and don't do those
line of credit's help help the city. I do especially toward
the end of the year when we were dealing with the end of
the year revenues and New Year processing to make sure that
it's smooth as we go through. So is that a reason why we
cannot work with them because of that it's part of its part
of a reason we would be working with institutions to get a
line of credit, you know, regardless of our deposit or a
relationship, but it certainly helps so
So so mostly we do that with the larger Banks or do the
smaller smaller Banks don't do that. Right weekly it was
trying to help you out. It's available to smaller Banks to
provide lines of credit. But when an institution is under a
billion dollars is very difficult for them to provide a lot
of credit that the city of Chicago might need so that falls
to the larger institutions that can provide that that
larger flexible. So when they give us lines of credit it
help to help us with money up front to be able to do some
things that we have to do right by but everybody can't do
that. So we have to work with somebody to be able to do
that right? There is an ecosystem. Right? So you have the
larger institutions that can do larger items like larger
lines of credit and then you have your community
institutions that have that more direct in in impact on
their local communities. So our dollars are going to
maximize for being in there too to benefit those local
Beauty.
Albany bank is in Albany Park basically does all of its
lending into Albany Park there for our dollars going into
Albany bank will benefit the people of Albany Park. So I
don't know if I don't know if all of us even knew that we
get lines of credit from these big Banks and it helps us to
use money for things that we need a front and you know for
different things in the city. So so I think everybody need
to know
Bigger picture of how we deal with these institutions in
and why we have some of these relationships with these
institutions for these different reasons. I just wanted to
put that out there ultimate Silverstein is jaundice from
Orem and will be counted towards it all the men Vasquez. If
you have a question to end up just one question, so I know
there been times in the past term where you know members of
this body will write resolutions about who we choose as
Municipal depositories and what kind of values we want to
represent as a governmental body inside. I guess my
question is as as you ovulate, like what values besides
return-on-investment do you prioritize and choosing the
municipal depositories? And is that kind of ring somewhere
is almost like a mission statement of rubric?
So it's definitely be on the highest risk-adjusted return.
I mentioned earlier that we're looking for partners. We're
looking to make a difference in the lives of residents. And
so we look at there is a plethora of things but we want to
make certain that we working with banks that want to invest
in our residents that's important. And that's why I'm not
opening statement. I mention about the financial
empowerment program that we have that even the four banks
that I mentioned today. We're participating in helping and
that's what we want to see other things so I could wear
those Banks also choose to invest in that you look at and
go ahead. Maybe there's somebody we may not
Let me speak to values but want to see what they what they
do with their funds is that any part of the calculation?
There's many factors that are part of the calculation. I
don't have that written before me but there are many
factors that are part of the conversation, but I also know
that it all and Compasses Under the Umbrella of who are
going to be good who are the banks that are going to be
good partners with us, all of those are taken into
consideration, and I hope by what you heard today. You can
see that it's happening you and appreciate the fact that it
is just working progress conversation. So, that's all I
have. Thank you for everything you think is your mom. Thank
you all move right into a presentation spank you very much
a city treasurer and our city comptroller and you might
just want to hang out or have a Stafford hang out if there
are the questions. Thank you.
Thank you. We'll start with the Horatio Mendez president
and CEO of the Woodstock Institute followed by Anthony
Simpkins president and CEO of Neighborhood Housing
Services. And then we'll hear from Kevin Jackson who's the
executive director of Chicago rehab Network. Mr. Mendez you
were on wvon this morning was that you know, that was my
policy director Brent Brent Adams. Woodstock's Pitbull. He
did a good job. Good. Alright, thank you very much Madam
chairwoman and alderperson Taylor, please ask that question
again, but from the panel
Box over here cuz we were drooling to answer some of your
questions, but with help from the legislative Black Caucus
a couple years ago and idfpr and many advocates in this
room. We shut down predatory lenders in Illinois to the
tune of 600 million-dollar saved by Merrilee and black and
brown communities, but there is still there still a few bad
actors out there and we can talk a little bit more about
that also to the gentleman that was talking about the
bigger picture issue and granularity at the community
level. We'd be happy to work with any of the other people
here to dig into the state of banking in your ward we have
that information online is publicly available. So just
reach out to me. We're happy to sit down so you can see
Banks branches lending foreclosures Etc.
As was mentioned, I'm the president and CEO of the
Woodstock Institute as many of you know, we've been digging
into bank lending data for the past fifty years or so as a
as a result of a question by alderperson Lee who I think
just walked out when we made our presentation to this body
last year. We've expanded our analysis in a much more
detailed lending Trends to specifically look at black brown
and asian bar hours in Chicago, but we don't have time to
go over those findings today. I do want to let you know
that all of you will receive those reports in the coming
weeks and we'd be happy to have conversations with you
about what it means after the bay.
That responded to the city's request to become Municipal
depository. There's a lot of information to share that we
sent you our assessment of all of the data that we thought
was relevant to you late last week. I need about 10 minutes
to go through it in any reasonable manner, but I have half
that time so I'm going to skim through it and give you the
highlights first. We're really glad to see smaller Banks
toss their hats in the ring aside from The Amalgamated
small business lending. None of these smaller financial
institutions have enough publicly-available lending data
from which to highlight their activities in Chicago for the
information that we provided to you doesn't include two
with them and really only relates to Amalgamated when
discussing small business lending now our assessment of the
lending performance of the bank's wanting to do business
with the city consists of small business lending data from
Cook County and not because of limitations of publicly
available information and then the most recent Home
Mortgage disclosure act or hmda data for the city of
Chicago We compare them to each other in three pretty off.
Spam's above a average envelope here. Now. We all have very
strong feelings about what year is per help here is
performing and as was mentioned a couple years ago when
this body passed the lending Equity ordinance, I think our
goal is to make sure that these financial institutions than
any financial institution. He wants to do business with the
city of Chicago knows we're looking at them that we know
how they may behave when nobody's looking and I think we
are seeing progress in terms of the fact that we are
looking.
What is data so are definition of average each year is
hopefully going to be moving up because it's some of you
maybe you may feel like in your ward or in your District or
in your community or to your constituents. They suck in our
goal is for them each year to suck a little bit less and I
think we're getting there and that's up for interpretation.
So we did this analysis and in a couple of different key
areas mortgage applications, which gives us an idea about
how much of an effort the bank of making to be visible in
welcoming in your communities loan originations, which is
really where the rubber meets the road turning those
applications in the home ownership and then the diversity
of their lending based on the borrower and the community as
I said, you can find a lot more this information on all of
the lending institutions including rankings foreclosures
branches broken down by each community area on our way
Woodstock Institute website. So let's go to the cliff
notes.
On this side. We see Dad on the applications received from
Minority borrowers overall. We saw an increase in these
numbers from a majority of the responding Banks and for all
Chicago Lenders not huge but moving in the right direction
or Banks performed above Pier B of A BMO City and Chase,
but we saw significant year-over-year improvements from
Chase Huntington and BMO.
In this next slide, we turn to those applications that
turned into Home Ownership. We went from three Banks
performing above your last year 25 this year. Overall. We
saw the majority of blank the data improve on this metric
again a little bit not earth-shattering but in the right
direction as well as for all Chicago Lenders, we saw the
most improvement from B of A u.s. Bank Chase in Huntington.
Now, we have some concerns about FHA Loans being originated
the borrowers who qualify for conforming mortgages, but
that should be the topic of another subject matter hearing
and also one of the reasons why redlining was an issue in
the first picture not just about the loans. It's about the
kind of loan you get whether or not it's affordable and
whether or not it's the rights that are you another
conversation another day.
Here, we have 5 above Pure Performance when it comes to the
application. They received from low and moderate-income.
Arella. My borrowers most improved from last year will be
of a Huntington BMO and
a four of those five performed above pier and turning those
applications into originated loans and we're joined by
Chase and us both of us both of which went from a average
or below-average in terms of attracting applications to
above-average in terms of approving what applications they
got from Ella Mae borrowers compared.
Last year's data, we were impressed by the Improvement at
b.b. Of a us and Huntington.
And he's next door to slide. We turn our focus on community
not borrower and this slide we have seven Banks performing
above average in terms of applications received from
communities that are majority-minority. But that's a bit
deceiving overall. We saw a decline in this metric not just
for the responding Banks, but for all Chicago Lenders, it
wasn't huge but it's worth further investigation and
discussion with lending institutions.
Of the responding Banks only Huntington actually going to
go back here of the responding Banks. Only Huntington saw
any Improvement of note in terms of getting applications
from majority-minority communities.
In terms of turning those applications into actual home
ownership. We have six banks that are performing above. But
again that's deceiving all six of those Bank show decline
in this metric which also shows up in the numbers for all
lenders in Chicago as in the previous Slide. The most
improved was Huntington.
For the next two slides look at small business lending where
there's a lot less publicly available information. And
these two slides you can see the share of loans made by
these Banks to small businesses in terms of both number and
this slide and then dollar amount in the next slide. So
take a look at things like City UF in Huntington were over
three-fourths of their business lending activity is focused
on small business in terms of dollar amount over half of
the loans after the dollars went by Amalgamated City chase
and Huntington went to small businesses the average loan
size of small business loans from The Amalgamated was much
higher than the others, but I want to make sure that I
educate the spot body to understand there's there's data
and then there's context behind the data. So you may have a
small business that needs a quarter of a million dollar
loan to replace equipment in their Factory or in their
manufacturing or in the restaurant and they go to a large
bank and they end up getting approved for $25,000 instead.
$250,000 that happens a lot when we talk to small
businesses. So I don't want to pack banks on the back for
making small-dollar loans to small businesses unless we
also have the data of how much do they ask for the 10% of
what they needed now that'll buy you a coffee at Starbucks
as far as they're concerned. They're going to need to find
the money somewhere. So what does all of this mean? It's a
bit of a back we see Improvement as a relates to the
outcomes for minority and lower-income Borrowers.
But not too majority-minority communities on the outside by
highlighting this data, it allows housing organizations
that we all know and we all work with to focus this kind of
work with lenders to figure out a way to address this
issue, even though we acknowledge that the average or even
above-average Banks serving Chicago isn't doing enough as I
said, our ultimate goal is to see the Baseline of average
increase year-over-year and I think this data shows that we
are indeed improving and I think this ordinance in The
Lending Equity ordinance, and these annual conversation are
a big reason why thank you for the opportunity to share
this information with you.
Thank you very much. Will hold our questions till after mr.
Jackson is spoken.
Hello Anthony nice to see you. Welcome back.
Morning, Madam chairman and members of the committee glad
to be here before you again Anthony Simpkins president and
CEO of Neighborhood Housing Services of Chicago. I'm also
the head of it. So I meant he's my techie want to just
thank the members of the city council for passing the
lending Equity ordinance in the first place because it
requires the banks seeking depository status to be more
transparent about their lending and services in Chicago.
Neighborhoods are in mandated this very subject matter here
until
We can sort of talk through that data. So let's take a look
at that dated as a relates to mortgage lending specifically
and access to mortgage credit and form ownership or the
banks that are now applying to be depository institutions.
This data, which was crunched. The numbers were crimes to
buy Woodstock for us shows data for 2020 to purchase
refinance and home improvement loan applications loan
originations loan denials and total lending volume by race
for the banks now seeking to be Municipal depositories, as
you can see from the data white applicants had more
applications at about 4678 Edmore loan origination that
about 4066 then the other racial groups here for both for
purchase refinance and Home Improvement loans
across-the-board Black and Latino borrowers were denied
loans more often than the white bar hours of the 1621
application submitted by black mortgage applicants.
The black application denial rate was 36% of the 2040
application submitted by Latino applicants for mortgages.
The denial rate was 27% This is in this is compared to only
18% denial rate for white applicants.
Are these institutions originated over two billion dollars
in mortgages for white applicants and in white communities?
But only 3.5 million are for Latino borrowers and only 2.4
million for black mortgage applicants.
This next slide shows the overall 2022 loan denial rates by
race for first mortgages that's purchase refinancing home
improvement loans across the same institutions the Red Bar
represents black bar. Where's the green represents Latino
applicants pink is white applicants blue is Asians and
yellow represents those who did not report their race
across the board Black and Latino borrowers were denied far
more often in every single Institution.
Okay, so they were done. Okay, so
so this slide shows the purchase denial rates by race loan
to
Loan-to-value and also by household income for the same
2022 data of significance in this chart as you can see is
that the higher denial rates for black mortgage applicants
for example was higher in almost all income categories
including the highest household income in cowboy and also
for almost all down payment or loan to volume a mouse. So
what we're seeing here is that credit profile the amount of
household income. You have the amount of down payment that
you're providing doesn't matter. You still are going to get
denied more if you're a black moor to get mortgage Appleton
and also if your Latino mortgage applicant
So let's talk about cdfi unlike traditional Banks community
development financial institutions or cdfi are nonprofit
mission-based lender specifically created to provide access
to financing the low and moderate-income borrowers and
borrowers of color and provide.
Financing in historically disinvested in Redline
neighborhoods. Cdfi is like in a chest are rooted in the
communities that we serve. That's your communities and we
don't just lend we provide comprehensive pre and post
purchase services for our clients. Are we provide flexible
mortgage products and underwriting criteria and we have
lower than I erased than traditional mortgage lenders both
depository and non-depository lenders by as much as half.
So what is the impact of that kind of mission based
lending? Cdfi. More positive impact for communities will
not only help families realize and sustain the dream of
homeownership. We create real economic impact for families
and neighborhoods in the most recent three-year period for
NHS, for example over 90% of our borrowers were bar was a
color for mortgages and over half of our borrowers were
women in a chess created 774 new homeowners during this
period and save the 163 homeowners from foreclosure. We
invest 33 million dollars in Chicago communities and those
homeowners that we created and saved paid over three and a
half million dollars in property taxes. They added 19
million dollars to the overall County GDP and created 133
jobs.
So we understand the systemic barriers some of which we
talked about today that low and moderate-income borrowers
and bars of color face and we seek to design an equitable
mortgage products specifically to overcome those barriers
and reach many more low and moderate-income borrowers and
borrowers of color and in disinvested neighborhoods. Are we
in fact have been working with Woodstock Institute and a
number of the depository institutions that you're
considering today on how we overcome those barriers. We
have determined and Equitable mortgage product that does
exactly that.
It includes down payment as low as 3% no private mortgage
insurance. No loan level price adjustments which typically
make loans when minority borrowers over to get them more
expensive for them higher debt to income ratios manual
underwriting as opposed to automated underwriting and this
loan product is available to higher-income households it so
that we have a strong middle class and I diversity of
income in our neighborhood and it allows for purchase Rehab
Lending.
And it also allows for using rent and utility payments to
show credit history.
Not many banks now have water call special-purpose Credit
programs that are designed to help them Reach more
low-income more low to moderate-income borrowers and
borrows of color this graphic a the NHS proposed Equitable
loan product with some of the more Innovative special
credit programs are now available. Unfortunately, these
types of special mortgage programs are small.
And are not widely enough available. They still contain
many of the same barriers to accessing to access Face bar
bars of color brushes loan level price adjustments and I'm
not available to many working working class families
because of low income requirements.
Are we doing the last few years as a rock your pointed out
Banks? Like the ones you are considering today have shown a
much greater focus on lending Equity efforts, like
special-purpose credit program showing improved commitment
to reaching borrowers of color and low-income borrowers and
investing in our disinvest the neighborhood and the daddy
does show some progress. What as you seen from the data a
few special credit.
Purpose credit programs are simply not sufficient.
And they are still persistent and dramatic disparities in
access to mortgage credit and homeownership for people of
color and low and moderate-income people in our South and
West Side neighborhoods. So what can the city do what? Can
you as Alderman do to help improve the situation?
I would suggest that you can and in fact would urge you to
encourage your banking Partners to invest and Community
Development financial institutions that have a proven
record of lending equity and reaching borrowers in our
neighborhoods that Banks still struggle to reach to ensure
this can happen the city can provide city funding for loan
loss reserves and other forms of credit enhancement to City
at 5 that provide home mortgage lending. These public
investments will make it easy and attractive or Banks to
invest in city of Oz to expand mortgage lending would be
small public investment CDF eyes will be able to leverage
millions of dollars and private bank Capital to provide
fairly priced Equitable mortgage loans to aspiring
homeowners of color and low and moderate-income borrowers.
We think that by working together the city
The banks and nonprofits like in HSM Woodstock can expand
home ownership and all of our neighborhood and help close
the racial wealth Gap in Chicago.
Thank you, Mr. Simkins will have Kevin Jackson. Thank you.
Gentleman doll chairwoman do and the committee I'm Kevin
Jackson with the Chicago rehab not work. Then that works a
coalition of Community Development corporations were
founded in 1977. You know many of our members are the
organizations that are on the front line of your
neighborhood organizations, like the Renaissance
collaborative the resurrection project Development
Corporation and Associates to mention a few Lawndale
Christian Development Corporation there the Builders of
affordable Housing and Community capacity in for resumes.
Remember as has weakened been back in the day.
So as much as we support, the cdfi Investments way to just
want to acknowledge investing directly into cdc's is a
brilliant move to build your local capacity so we can get
housing that's built sustainably some of the policies we
worked on in the past, you know where like before the
requirements ordinance back in the 80s three have not work
cuz we organization leading the creation of the trash.
Find today the largest trust fund in America and the list
goes on with preservation strategies and everything else.
I'll be brief on my comments because I know it's more
important to hear your dialog crn focus on resources and
policies for the field of affordable housing and meeting
the capacity building needs for sustainable neighborhood
development along with our member cdc's we have interest in
affordable homeownership as well as multi-family Rental New
lending products.
New lending products for our communities are needed access
to short-term financing what we call Bridge financing could
be a game-changer for play Space developers a line of
credit for operations for small nonprofits and
entrepreneurial Community investors is another Financial
need that can make a significant difference for
neighborhood development leveraging Capital Investments at
the municipal level to create new Innovative financing
products is a worthwhile goal of this committee that could
better meet the credit needs of communities unable to
access capital from traditional financial institutions are
City fundamentally needs a dynamic range of Investments and
low to moderate-income communities that can support greater
access to ownership models, including Cooperative housing
and share loans to provide.
1/3 housing option that can contribute to generational
wealth building investments in the preservation and
development of multifamily rental building continues to be
vital the growing disparity in housing wealth and the
opportunities must be rectified racialized appraisals have
been undermining values for decades and have baked
discriminatory valuation since the beginning of redlining
and white light that followed there is great need for
Consumer awareness and protection to enable them to know
how to heal and get assistance protecting their home
values. Our communities need protection from cash investors
and real estate slippers as stated in our mission. We need
Community empowerment and development without displacement
a mission. We will be celebrating for 47 years in 2024. I
definitely a key focus is housing policy work that Focus.
Turn on transparency and accountability and neighborhood
development and alcohol recovery policy Sprint since like
the neighborhood home investment act at the national level.
Are very important and we need a crew of roaches by all
levels of government as well as the private sector.
To wrap up 50% of all Cook County renters and an alarming
87.8% of households below 30% Ami our rent burden. They
were paying over 30% of their income toward rent yet. The
supply of affordable units has dropped by 15% since 2012
the shortage of affordable housing exceed a hundred and
twenty thousand units in the city. One thing we learned
during the covid pandemic the role of Housing Community
Health and well-being has been magnified this exasperation
of housing in security has proven expecially detrimental
for low-income communities and communities of color already
facing the greatest systemic barriers to housing as many
households struggle to make rent or mortgage payments are
strong Lobby Source Community Development field.
Responding to the unique and diverse housing needs of
Chicago. Neighborhoods is more important than ever.
Thank you. Mr. Jackson. I'm before we go to questions. I
wanted to have our controller respond to these
recommendations that being made by Neighborhood Housing
Services for what the city can do.
Yep, you hear me? Yeah. Yes. Thank you. And I really
appreciate the cdfi contingent that has come here work in
the past with a number of them and have been incredible
lending Partners going to take them one at a time and I
just want to give the caveat that investment related items
would come from the city treasurer's office. But I would
obviously work with with her office on any of these I think
encouraging Bank investment into CDF eyes, which a number
of the institutions that are meet us will deposit or he's
do do a lot of lightning with CDF eyes. But where we can
gather more information around what exactly that work it is
how they are impacting those different institutions and and
speaking with the cdfi community to make sure that we're
getting feedback not just from the primary lender, but also
the CD if I Community are all things a week. I'm interested
in considering
And I think is worthwhile for us to look at number to
provide a city funded loan loss Reserve credit enhancement
to see if eyes that's something that I think is a robust
discussion with the city council mostly because that would
be a monetary expense. So we would have to have a
discussion about that within the finances of the city of
Chicago. But again CD of eyes are very strong Community
Park
So I think it's something that way it's worth talking about
with many of the members here. It's City Council in 3 track
and hold Banks accountable for investments into local city.
If I specifically for mortgage lending my kind of alluded
to that in my answer the first question. I think that's
something we certainly could look at especially making sure
that we're having feedback not just from the municipal
depositories that we are having with the CDF guys. We know
that are in these neighborhoods already. Thank you Mr.
Simkins. Do you want to respond to that? And then I'd like
to take questions from City Council Members starting with
all them and Rodriguez. Absolutely and thank You Chasing
Amy. He's been an amazing partner on exactly these kinds of
issues when he is a dpf-r and we expect that you will be
continued to be that for the city of Chicago just a little
information about the investment of banks ncdf eyes. And I
think they would stock with with back this up is that
they're primarily investing in small business when it comes
to
Partnering with cdfi and we are not seeing that kind of
investment in CDF. Is that do mortgage lending so that we
can make sure that people are plugged in the homeownership
the banks that are before you today and the other banks
that the city work with you a lot of investing in our low
income housing tax credits and are tax-exempt municipal
bonds, which helped to create really important affordable
rental housing, but that rental housing doesn't build
wealth for the residence home ownership is what build
wealth for residents and we need to see
Investing with cdfi that can create mortgages and expand
home ownership.
Thank you. Mr. Simpson sexy. Mr. Mendes you had your hand
up as well. You want to add to this just a quick coffee out
that the trends of the 30 years that I've been in banking
as well as investing in CD at 5 have shown somewhat of an
unfortunate habit of financial institutions shutting any
shade that isn't white to CDF eyes and nonprofits and you
deal with them. So we want to be able to make sure that
we're we're very much utilizing and watching the
performance of commutative element financial institutions
many of them with portfolios that perform at banking
levels.
That that should be part of the mainstream banking industry
and that the nonprofit and cdfi Industry really should do
what it does best, which is that research development
piloting at the community level to figure out what else
needs to go into the main body of banking. It should not be
the Dustbin where those people get their products. Thank
you Father and Rodriguez followed by Alderman laspada.
First question is
The sophisticated Financial term suck. Is that copyrighted
by your aunt either? I think it's based on the Latin verb
of one thing. I want to agree with you on this tremendous
is the fact that this Council in our wisdom passed this
ordinance that requires this transparency and I do believe
that and I agree with you in that transparency breeds these
better outcomes. So I'm looking forward to continued
conversations Madam chair very quickly just some grounding
conversations this data I believe is January one for
December 31st 2023. Is that correct?
Actually 2020 to get a data B was released by the federal
government in December last year. So this is the most
recent next year the government takes its time and giving
data at the Wii U the most recent data that publicly
available so it is a bit dated. So I did want to be clear
about that and that there is potentially more movements. I
think about one of the institutions are not going to name
them has opened a significant number of storefronts and
black and brown communities and I'm really curious next
year or how they're going to perform given that there is a
lag when you're in this data, that's all I wanted to say. I
do want to get a grounding on and what the what what time
for the data is from and I want to congratulate you on the
work that you're doing on ground.
City of pie. Is that a federal designation or is that a
self-imposed of Z Nation to talk more about what a CD if I
is and and and where the term comes from its low. The term
was coined by Woodstock now to I've met a fellow by the
name of the I guess his name is Dylan to his story and he
said everything will about America gun from Chicago and so
does the idea about it was formalized for the Regal Neil.
Can you develop an Act of 1994 as a federal designation for
financial institutions whose Charter is specifically
community and economic development, which essentially our
communities that are underserved by the traditional banking
industry and are Loosely tied and regulated by the US
Department of Treasury designation. It's it's a very tight
Charter and that's the next question to see if you guys
what's the accountability are they are held to the same
Financial regulation system. The banks are what's the
difference there?
Yeah, so Princeton Neighborhood Housing Services. We had
our mortgage lending affiliate is neighborhood lending
Services, which is a federally designated community
development financial institution. And so we are regulated
by the Department of Treasury, we have annual reporting
that we have to do to the Department of Treasury as well.
As any banks that provide investment to us. We have Aries
ratings and bunch of other stuff. So we are regulated that
I'm very interested in your goal.
I love the further that Chad I think it's makes a lot of
sense. I'm on The Advisory Board of Self-Help Credit Union,
you know a lot of the work that's done at these
institutions really really should receive more attention.
And and you know any try Jesus I might not be in my
neighborhood was a friend at Giant in the grants and loans
that I got a my I'm a personal story on us and the
investment than any chili mix in communities. I got the
grants and Loans before I was all there and by the way last
question just something something an outlier. I think
Anthony Vivir presentation of page for I was looking at two
data points in the middle of their
Those between 44 and 71 K 50% of of of white Africans were
denied. It just seems like a and 0% of of of of of
applicants. It just seems like those data points are
outliers. Is that is that true or what? What's the
significance of these data? That is based on a 2022 on the
data. We did check that with Woodstock that is actually
true. So I'll for household with household incomes between
44000 and 71000 who were sitting alone with greater than
90% loan to value. That means they were putting down less
than 20% down payment white applicants actually in this is
amongst the depository Banks hear that at that are applying
white applicants were actually denied more.
Black applicants. It is a bit of an outlier. But as braccio
said I think it shows some progress on this was probably
due to the fact that they've been a proliferation of a
number of these special purpose credit programs
specifically designated for low and moderate-income
borrowers and in some cases specifically for borrowers of
color. So it is a. Show moving in the right direction, but
as you can see in all the other categories is the opposite
of the things that were looking at though is through a lot
of these special-purpose credit program that are being
piloted by financial institutions like the ones that want
to do business with the city. We really want to pay
attention to their performance and over the course of a
couple years. We want to see those outcomes for the
lower-income higher loan-to-value borrowers. We want those
products available to everybody. It shouldn't be something
we're opor you we have something special for you if it
works and it repays.
Well, everybody should have access to that irrespective of
income race or sex. So we're really hoping for this sort of
ecosystem of innovation and we're starting to see at a few
institutions that are willing to dip their toes into it
amongst us Advocates both here in Chicago, but naturally,
we really want to see those expanded into the new normal so
that way we don't have all the birds and Taylor have the
same issues and communities that we continue to here now or
some communities have access to it.
You know what, they look like and their income and others
don't simply because I thought that sorry we don't do that
there. It's not our test area or AR tests population. So it
is just to piggyback on what her Asia was talking about in
this is something we worked extensively with Woodstock on
is that Equitable mortgage product with a 3% down o p m I
no longer have a price adjustment. That is the kind of
mortgage product that we want to see widely available
nationally. And as Rodger said one of the things that CDF
fires were created to do was to infect pilot and test these
kinds of products to show that they in fact are viable and
so that we can show that those those loans get repaid their
low default rates, which historically has been the case
with an h s and other lenders like that the three primary
cdfi nonprofit mortgage lenders home mortgage lenders in
Chicago are self-help NHS and the resurrection project
right? And so we would be perfect for testing this kind of
a mortgage product, but we need sort of the cow.
Reserves in the the credit enhancement and stuff to get the
bank's actually to give us the month to live on the bar.
Good job Young by Alderman Taylor
Rodriguez you say good job. Good job. They just making this
all so infuriating to read where an angry than just
complacently go along with the status quo when you put this
information in front of me and I I think about how many
colleagues in this room would be denied for mortgages that
I applied for the infuriating when I was going to ask a
question about what do we do when we control for income but
Anthony you put the data forward when you control for
income. It's just about as bad as when you don't it's
really frustrating. So I'll try to ask productive questions
in light of that or I'll see you when you talked about
conforming mortgage has vs. FHA mortgages. Can you talk
more about conforming mortgage is and why that's
preferable.
There are basically three of the Holy Trinity of mortgages
you start with jumbo, which is what you have along the
Lakeshore a little bit up north. Now the
multimillion-dollar mortgage is essentially are financial
institutions taking their own risk making a loan that the
government is not going to ensure but typically it's the
higher-income people with an awful lot to put down or they
choose not to kind of depending there aren't a lot of
standard products for Jumbo.
Products for the most part it's what are you got what kind
of financials what kind of income and will create a
mortgage for you then on the other side of that is FHA the
federal housing Administration program which states back
quite a few decades and that has been traditionally focused
on lower-income Lower wealth borrowers and the Department
of Housing and Urban Development. They provide a guarantee
on that but part of that guarantee expects a little bit
more flexibility in terms of underwriting but there needs
to be a little greater security for the originator and for
the governor for the government to feel like they've got
their backs covered in case those loans go south the one of
the mandates the federal housing administration loans is
that they pay mortgage insurance the life of the loan.
And there were some other things associated with that loan
to with additional fees Etc that make it slightly more
expensive than the middle bucket, which is conforming
conforming mortgages are what most people get. Those are
the kind of mortgages that end up getting originated and
then sold to two government-sponsored Enterprises Fannie
Mae and Freddie Mac, which we all remember from the
mortgage meltdown explicitly or implicitly guaranteed by
the government. And that's really the marketplace for
packaging those mortgages into Securities and sold into
portfolios many of your retire.
Find etcetera and up with mortgage-backed Securities. And
for the most part come through Fannie and Freddie what
we've noticed and some of the early Trends and I mentioned
this and I apologize alderperson Lee you weren't here when
I mentioned that I gave you credit for spurring us after
the last meeting for not having detailed data on lending
Trends by black brown and Asian. Am I answer to you was
unsatisfactory to me saying the Blended information is too
noisy we have data for you, but some of the data that were
looking at in terms of the breakdown are also showing us a
proxy that we got in the work that NHS and what soccer
doing with lenders to deconstruct the mortgage process and
try to rebuild it. So it sucks less to use the Latin
phrase. One of the things that we work with them is in
terms of the data that's available who could borrow
We came up with a couple of benchmarks basically debt to
income ratio. How much debt to you have based upon your
income. The other one is what is a loan to value of your
mortgage? How much money do you have to put down and how
much of a loan do you have to get based upon your home
price one of the data points after we determine that to be
what we called it a proxy for well qualified borrowers way
too many well qualified borrowers of color are getting
steered in the FHA Loans. They should be getting the
cheaper loan. Now. That's something that I just said you
all are going to get our report and we're going to have
another conversation hopefully about this, but that's
something we can work with what some of the lenders that
even when we turned to them and said, did you know this is
Opening many of them were surprised so they don't even do
this analysis and sometimes so we need to figure out
exactly where that steering happening because what's that
doing is it's making homeownership more expensive for the
few people that actually go through that process six. Thank
you. Mr. Men. Do I will try to a quick follow-up questions.
I want to ask when we when we were looking at these new
products being offered by these various things that are
they seem to remodel or take after what any chance was
trying to accomplish. How do we ensure that these don't
turn into the same loan products that took advantage of
black and Latin explore in 2005 to 2007. What what keeps
them from going down that path
Well first we have a new regulatory agency in the Consumer
Financial Protection Bureau and a number of different laws
that are preventing a lot of those things happening.
Unfortunately, not only are some of the regulations that
have been implemented by the Consumer Financial Protection
Bureau being challenged in court by the industry and the
Republican Party. Actually. The agency itself going its
funding stream is being challenged in the Supreme Court
shortly by the end of three, so there is a bit of
nervousness saying that the protections that we were able
to put in place as a result of the morgue.
Your meltdown are now being watered down by industry itself
in the party that says they're all for business, but I
guess it's only a certain kind of business. So we're going
to have to keep our eyes on that. But right now there are
rules and protections to be able to make sure we don't see
that again and let's just hope they stay in place.
Oh, I love love just waiting on how can I just ask you to
have one more question because we have to go to read with
finance committee. Even skipping my hand. I'll just make,
and I'll schedule coffees with these two gentlemen. Listen,
if I didn't believe that any everyone in this room in the
city Side was committed to doing better and holding higher
standards. I would vote no base on a lot of the red bars. I
see in front of me, but I know we can do better and I I
look forward to working with you tear woman Chase with you
on a lot of solutions that make this work more Equitable.
So thank you. Thank you all the men Taylor followed by all
the Missy Joe Lopez.
So I'mma keep it brief cuz I don't want no trouble to
questions based on you. All saying these Banks suck.
Wooden. Our communities are City benefit from Republic
Bank. Number one. Number two, you all keep making the
statement about home ownership is what we do generational
wealth. Why are we not working with chaa and HUD for those
programs if they have to get those folks from rinsing to?
Homeownership. That's it. That's great. I can take the
second part of that question and NHS in particular is in
fact working with chaa, you know, they have this new down
payment assistance program. Are there were working with
we're also their primary partner on the I choose to own
program which helps housing Choice voucher recipients trans
transfer into homeownership using using their box. We think
that's a particularly important program, especially for
some of the neighborhoods like your own that are seeing
some gentrification Crashers. It's a way to keep some of
our low-income residents that have a stake in the community
in the community now with stakeholders to homeownership. So
that's very very important. I'm so we're working with chaa
now to do that.
On the public Bank question, I think a couple years ago
when this came out to the advancing equity and banking
commission. I have provided both of State Treasurer in the
city treasurer some information. I served on a number of
conditions on the west coast and east coast to look into
exactly public banking options. There are a lot of
complexities associated with the city becoming its own bank
including the question of whether or not taxpayers are
comfortable being the backstop to go bank and that has
raised a lot of eyebrows in cities like San Francisco and
New York and Miami and Portland happy to have a separate
conversation about the details associated with that. So no
good idea comes without some
Bad aspects to it, but it explores being.
Investigated I just want to say for the public workers. If
you all have all stated that the banks are moving, but
they're not moving fast enough which is why we're in a
housing crisis, which is why black and brown folks can not
have access to generational wealth. And so it's not one of
the other it's and in both but these little marks that they
are making are not enough to change. So your point I do
have a gentrifying community but also got Parkway Gardens
where the majority of those folks who live there. I heard
recipients and they know nothing about the homeownership
program. Thank you, Matt. Appreciate it. Thank you all in a
chest to give an AR homebuyer education programs. Thank
you. I have two quick ones and I have to go to them to
order business, but I know that you got a rehab Network
brought up these and this innovative ways of addressing
housing princess cards, right? There's an easy one. I think
we should be
To figure out but let's figure it out here. Hopefully so we
have a banking institution that is not interested
recognizing cops because I mean that's the bottom line is,
you know, creating more home ownership to a looming Taylor
is key and to prevent more loss of naturally occurring
affordable housing. So how can we work on a thing is very
clear and smooth recommendations to make sure that all
public funds ensure the banking institutions move towards
those important initiatives that can help us. Even Kramer
social housing as structurally were not there and 2nd so
that would be that would be my first picture about housing
cops and how we can get the banks, you know how to help
with that so that we can. It's cool cuz the issue is like
in Buellton we had our house in Cobb that actually got from
the first because of the public sector before the private
sector in consider. We have to fight buildings by the scope
is not enough and we are holding a natural.
So one is on on this particular issue how we can expand on
these important initiatives that are working, but just not
fast enough because of the structural issues and second. We
have an exact order that the city of Chicago mayor of the
city has recently passed so that we can overcome these
barriers and identified more opportunities to develop more
generational of homeownership. So what would be your maybe
three recommendations on that front. William? I do two
questions. Thank you.
Thank you. I'll talk to Joe Lopez appreciate your
leadership in the housing front coops have been around for
a very long time and they are workable. They do work there
quickly effect in high Market communities. So we know that
there is an examples of how that works. But right now
you're absolutely right. We need share loans. We need
financial institutions. I think trying to provide some
level of protection to let financial institutions. This is
one of the areas of the public Bank. It is providing some
bases of support. So typical financial institutions can
explore more because I have some support for being able to
do that. So those are things that we should be talking
about his it's kind of like the long-lost type of program.
We need some security to see that these programs could work
and I think there's more than one but that's the idea is to
get the state or the final.
The government of the city of Chicago or even Cook County
to be able to take me to something we would acknowledge the
city has taken leadership on starting a pilot program for
preserving Cooperative housing in South Shore. We'd like to
see that expanded very attached from a tactical
perspective. There are some financial institutions around
the country that do specialize in Co-op house.
Finance I wish there were more there is a perceived
impression of risk associated with co-op housing when it
comes to the lower and moderate-income Market that's like
everything else and you got less money all of a sudden you
think it's risky. I got to tell you people on the lower and
consumer much better with our money in a budget a hell of a
lot better than the people that are getting financier
co-ops in Manhattan. So I think the role that chha Ore-Ida
could play in terms of providing pilot funds to be able to
create a guarantee to overcome that initial like I'm not
sure it's risky, even if it's for a few years to be able to
create a portfolio and then show that it performed well and
then pull out the guarantee and make him do it Market just
like they do in the high-cost market area. I think from a
tactical perspective that can work and it's been used and
other types of products as well. Just say that
coops is Kevin stated have historically been a really
important Avenue to ownership for minority communities my
own family lives in two of the owns units actually in two
of the oldest black-owned co-ops in the city of Chicago in
the Woodlawn community and also on Jackson's right outside
of Hyde Park since like the 1950s, right? So these are
affordable.
Ways for people to to own and to just go with these
gentlemen were saying the one of the ways that government
can help facilitate. This isn't that basically to mitigate
the risk of banks, right? So long loss reserves First lost
investment credit enhancement stuff like that, right allows
Banks then to make those Investments may be facilitating
some of the banks that already do the share lending to come
into to this Marketplace. How do you do that the center for
shared ownership provide the kind of support that these
home ownership associations need to make sure that they've
got the right governance. They've got the right balance
sheet. So making sure that that organization continues to
do the good work that it's doing that just in South Shore,
but all over the place. I think that you can actually
expand coops as a very important once again a very
important space for low and moderate-income and especially
the minority ownership.
Thank you. Mr. Simpkins, and I would like to thank Anthony
Simpkins to ratio Mendes and Kevin Jackson for your
Being here today and your presentations and also to our
city comptroller and our city treasurer there being no
further business has the subject matter hearing. So there
be no further business before the committee. Can I get a
motion to adjourn this meeting and then I would hope you
would stay so I can call roll call for a finance committee
members and then we will take a five-minute recess. I'm in
the opinion of the chair the eyes have it I and here I okay
and are subject matter hearing is adjourned.
So the committee on finance is now called to order and we
will have a roll call to establish a quorum. As I said
after the roll call. We will have a five-minute Recess by
Cher Conway. Alderman was Sparta Alderman Hopkins all the
men haul all the men Mitchell.
Alderman Harris Alderman Bill all the men lie all the
Ramirez
All the men Quinn ottoman lopez-alt me more.
Alderman Curtis
Alderman O'Shea Alderman Taylor
Alderman Mosley Alderman Rodriguez Alderman Scott
Alderman Central Lopez Alderman Burnett's
Alderman Ervin Alderman Taliaferro, Alderman Cardona
alderman waguespack
Alderman Rodriguez Sanchez Alderman Ramirez Rosa
Alderman Villegas
almond milk
All the Monsters auto Alderman Vasquez
Alderman Riley Alderman Knutson Alderman Martin Alderman
Silverstein Alderman Vasquez. I see you all the men O'Shea.
I have you chairman Darrell is here.
Alderman Harris is here.
And we have 20 members present. We have a quorum. We will
take a five-minute recess.
Sorry, I'm going to ask.
I'm well. Well if I can.
Department of
biggest change for me is I have a three and a half month
old. Are you awake?
Okay, the meaning of finances out of recess and we're now
back on our agenda.
Alderman and all the men ramirez-rosa have requested remote
participation under the provisions of rule 59. Can I get a
motion to allow all the Middle East so moves to allow all
the missing Ramirez roses to attend this meeting by remote
means all those in favor. I supposed want to confirm that
all them admits and all them in a row. I have join the
meeting.
all the minutes
Alderman Rosa
Okay.
We will Reserve their ability to join the meeting. Should
they come back at this time? We will begin the public
comment period on the public comment period is limited to
30 minutes out of respect for everyone's timey speakers
limited to three minutes. We have one person who is signed
up for public comment and that is George, Blakemore.
Good afternoon. It is been a long day. And we have one
person that sign up of the public coming. Where the young
lady. Where are the black people? What where are they?
Maybe mr. Blake Moore is having a panic attack.
I was reading my Facebook friends. They say we heard the
mayor had a panic attack.
You know, I think black people have had a panic attack and
I think we got the hell out self. Where are you list the
Blakemore young lady you're doing the same thing book
report ignoring me and and Alma public.
You said you wanted to hear from the public and I'm and I'm
the public. Why are you carrying on disrespectful think I
having a second conversation. Do you really want to hear
from me Five Nights at Darien Park?
We just got to Carol about realigning our people money.
Morning.
We have to look how.
Chairman Pat dial it's been a good money, millions of
dollars go on police abuse.
Waste Fraud and Abuse these often allow this.
They are part of the panic and especially the black ones.
Who need killing?
the legacy of slavery
I'm here In Living Color.
Advocating that we was Pals a term limit for these elected
officials. Are you talkin about finding that's why they
come in poor and they leave out. I went to the Ethics
Committee that what can we do to stop this corruption here
in the city of Chicago one of the most corrupt state in the
nation one of the low
Comes from not knowing how the hell I'll find it,
especially when it comes to the black community.
Big Black Album
Come and they don't represent up now. You will have spent
billions of dollars on these illegal immigrant and when
they have accounts of sanctuary all black ride along with
it.
What along with black people little problem big nose big
lips and black booty hoe to come up his feet?
Where are you? What happened to you on this Plantation will
be Street.
Thank you. Mr. Blakemore. We have a number of items before
the committee on our agenda today and will start with our
monthly rule 45 report will begin with the approval of the
December 2020 3rd monthly rule 45 report. These reports
were sent electronically to everyone that there are no
questions. I just received emotion from Alderman Matt
Martin. I asked me for approval of that report all those in
favor signify by saying I posed in the opinion of the chair
the eyes have it will now move on to the items on the
committee agenda as well. We have six items to consider
today item. Number one is from the Department of Finance,
which is an ordinance concerning the designation of the
municipal depository.
The city of Chicago in Chicago Board of Education for fiscal
year 2024. We are still joined by our comptroller. Also Joe
Flores from the Department of Finance the first deputy and
Karen Coker the deputy director from the Department of
Finance are available for questions, but we've gone through
all of our questions, I think but will consider other
questions Alderman Irvin Alderman Urban recommends approval
of item number one all in favor signify by saying I'm
opposed in the opinion of the chair the eyes have it and
the motion carries and will be reported out at our city
council meeting on the 24th item number to is from the
Department of Finance. It's an ordinance concerning the
issuance of the city second-lien Wastewater transmission
Revenue bond series 2024 there is
Substitute ordinance, which has been prepared and was sent
electronically to everyone. Is there a motion to accept the
substitute so moved by all the men Quinn all those in favor
signify by saying I ate all those opposed Nae in the
opinion of the chair the eyes have it the substitute
ordinance is now before the committee and will be explained
by the Department of Finance were joined by our Chief
Financial Officer Jill Jaworski Brendan White from the
Department of fine.
This is also here with us Jim McDonald from the Department
of Law and commissioner Randy Connors. I believe Joe Vieira
is here or Brenton Schreiber if their questions for the
water department.
rhythm
thank you German. My name is bringing white. I'm the
manager for the to Chicago in the Department of Finance.
So to start with the city to Felicia's bonds for two
purposes to fund capital projects of the city and to
refinance that sanding bonds scuse me. Can you hear this
pickup alone?
That better sorry the city typically issues bonds for two
purposes to fund capital projects for the city and to
refund outstanding bonds. There's currently about two
billion and Sewer bonds that are currently outstanding and
this these bonds that are authorized would both fund new
projects and refund outstanding Series 2014 bonds.
So this transaction will authorize about $300 and refunding
bonds and $200 in new money project bonds. The refunding
bonds is a transaction that we want to do quickly because
they're about 240 million dollars in currently callable
bonds that have strong savings above 10% over funded bar
this for funding would give us about 1.9 million dollars in
average annual cash flow savings for the sewer fund. The
new money project bonds would fund projects that are part
of the sewer systems VIP protocols would not we're not
expected to sell until early 2025.
No, just a quick summary of the refunding transaction would
replace the bonds that have existing average coupon of
4.97% with new bonds that have a all in true interest cost
about 3.81% As you can see here the current that Services
the red line and we would replace that existing Debt
Service with the blue line for new debt service. So we're
not looking to change the structure of the outstanding
Series 2014 Bonds were just looking to take advantage of
market conditions to refinance the bonds and bring the
overall Debt Service down in every year not extend the
maturity of the bonds, but just to realize 1.9 million
dollars of average annual cash flow savings.
for the deal team we have
85% of the underwriting Syndicate will be either will be
some sort of the nbe designation the lead under the senior
managing underwriter looked at. The markets has an African
American-owned firm and the other firms here is also listed
the only not minority firm is Bank of America.
Or the legal and advisory team we have a for law firms.
We're looking to use three of the four law firms are
African American firms and of the two financial advisers
were seeking to use one of them is African-American own
firm.
For the proposed financing schedule, the furnace was
introduced last month as being considered before finance
committee. Today. We're looking to potentially price these
Bonds in March. That's one weird post that preliminary
official statement, which is Bond prospectus to potential
investors. Look to close on April 10th.
And that is it for my presentation Pepsi her back over to
the chairman.
Thank you all for coming together today and considering
this ordinance. This is relatively and important for the
Department of Water Management. When we talking about the
savings every year that total. 25 million in Net Present
Value savings significantly more than I could have been
generated even 2 months ago. So we're really pleased with
where the market is and we're hoping we can move forward
that's relatively probably and and watch some of those
Savings in and and lower costs to dwm which just freed up
resources that can be used in other areas. So I thank you
very much for consideration. We do think this is a pretty
important than answering and looking forward to getting
approval and getting moving on it right away.
All right, so we'll move to questions from Alderman
Rodriguez.
and followed by Alderman Martin
Alvin Rodriguez, no questions all the time Martin
Any more specifics on when you're playing to do the second
half of the project bonds part of this.
Yeah, we're looking more at doing those next year because
those the needs that we have are that were expecting that
money gets spent in Star kids have been in the first to
second quarter of next year. So we issue the bonds now, we
would start spending interest on the nose on those bonds
when we wouldn't need the proceeds. So we want to wait till
later. We'll have a little bit more firm timeline as we
move throughout the year and see what the spending is in
2024. But the expectation is the need will be in not really
25 projects that that would be used for yet.
We have them here. They can talk more into detail about the
Project's. I mean the primary purpose of this is to replace
sewer Mains, but we can certainly ask him to talk in more
detail about the projects.
So I'm going to try every chief engineer super chief
engineer sewers.
So much of the capital program is focused on is the
aforementioned surname replacement. This is this involves,
obviously the replacement of
Undersized than old sewer Mains within the city of Chicago.
We be looking to do somewhere between 3 to 6 miles of
Superman replacement this year and
in Elmont beyond that this program are the bond funds would
be used to cover the cost for a private drain repair
program.
A private drainage. So it's in the primary cost with
private drain Repair Serum a replacement and Sewer main
rehabilitation relining.
Alderman Conway if I can help you add to that. My
understanding is that there's a scientific criteria by
which they look at all of this sewer systems and then on
top of that they overlay some Equity questions, for example
to focus on areas with large amounts of daycare centers or
in the case of what happened on the west side with the
flooding in Alderman. Mrs. Ward looking at
That issue or areas of the city where there is a high
amount of violence. So that's those elements are laid on
top of the scientific work that they do Joe Vieira who was
here could probably give you a better explanation of that
than I can but those are the things that they take into
consideration is are these are these bonds collateralized
by sewer and water payments. Are these just go
Oh, yeah, these are repaid with the sewer revenues. They
are not General obligation of the city. So if the medicated
pledges to a ravenous, so what kind of credit rating today
in the Heights and go away or low double a the sewer
ratings would we would anticipate if they were not actually
constrained by our Gia rating would be well into the double
a category and end in the red line the documents. It looks
like you wanted to do 600 million and change to 500
million. What what brought about that change that was just
a scrivener. There shouldn't have been 500 in the original
one and there was just one place. Where was 600?
Wonderful. That's all I got will let me let me commend you
for putting together a great team of Underwriters and legal
and and certainly the fees seem in. The right zone is
coming from someone who used to do this years ago. So thank
you. Thank you Vise chair Conway Alderman ramirez-rosa. You
had a question.
Okay. Is there a motion to recommend approval of item
number to so moved by all the men Irvin recommend. They do
pass all those in favor signify by saying I opposed in the
opinion of the chair the eyes have it and we will report
the do pass recommendation out at the next city council
meeting on January 24th item number three is a proposed
order authorizing the payment of various small claims
against the city of Chicago. Thank you very much. Chill and
Brendan.
Item number three is a proposed order authorizing the
payment of various small claims against the city of
Chicago. It was a direct introduction in the list of
payments approved was sent electronically to everyone. I
meant there's no question. The committee will recommend
passage in the Omnibus.
Item number for is a proposed order denying the payment of
various small claims against the city of Chicago. This too
was a direct introduction and if there are no objection the
committee will recommend passage in the Omnibus.
Item number five is a from the Department of Law of
communication transmitting reports of cases in which
verdicts judgments or settlements were entered into for the
month of December 2023. These reports were provided by the
Department of Law and were sent electronically to everyone
if there are no objections. We will place these reports on
file with the city clerk's office.
Item number 6 we have for proposal propose orders from the
Department of Law, authorizing authorizing the corporation
counsel to enter into an executed settlement orders in the
following cases. The first one is Brown versus Brian case
number 18 cat 11 in the amount of $300,000. We are joined
today by Carolyn frunzik the deputy Corporation counsel
from the Department of Law.
Good afternoon Alderman. I'm here to present to you the case
of Brown vs Bryant its case number 18 c 8011 presently
pending in the northern district of Illinois. That's a
federal case plaintiff. Anthony Brown is suing Chicago
police officer Sean Bryant and the City of Chicago for
claims arising out of defendant Bryant non-fatal shooting
of Anthony Brown on March 9th of 2018. The plaintiff is
alleging a claim of excessive force against defendant
Bryant and against the city of Chicago Illinois state law
claims of battery indemnification and respondeat Superior
dependent Bryan is being represented by outside counsel,
and the defendant City of Chicago is represented by an
internal attorneys in the federal civil rights litigation
division of the Department of Law Department of Laura
recommends the city authorized a settlement in the amount
of $300,000.
On March 9th of 2018 non defendant officers Hernandez and
Ramirez were assigned to patrol the area of 72nd and
Merrill and the Third District is a follow-up to multiple
aggravated robberies that occurred in the area. The
aggravated robberies had followed a similar pattern and
individual utilizing the let-go app to purchase a cell
phone would arrange to meet the seller at a set location
the seller would then robbed the buyer of cash in some
instances use a gun a father and son were shot on March 3rd
of 2018 attempted to purchase a cell phone from the let-go
app at 72nd and Merrill by to offend with knowledge of the
previous March 3rd in
Hernandez and Ramirez Patrol the area on March 9th of 2018
and observed a black Lexus with a white male occupant
sitting in the driver seat stopped at 72nd and Merrill the
officers contacted their team members officer, you know
horror and defended Bryant to the area in case they were
about to observe a similar robbery that the previous
pattern Hernandez and Ramirez male black now known as
plaintiff Anthony Brown who was a minor at the time he was
sixteen looking at the Lexus the Lexus drove off and the
officers trailed the vehicle as they drove back to 72nd and
Merrill play again saw Anthony Brown exiting the mouth of
the alley with a second individual. Mr. Brown and the
second individual walk towards 72nd and Merrill officer
Ramirez observe, the second individual walked or triple
axis, which was at the original location again, and he
spoke to the person inside the Lexus as Hernandez and
Ramirez approached Anthony Brown and the other individual
to conduct a field interview those
Two individuals began to flee Hernandez pursue this other
individual down a driveway and Bryant defendant Brian and
Unifour exited their vehicle. In order to chase Anthony
Brown Anthony Brown, then ran southbound in the direction
of the officers and according to Brian. He was holding her
manipulating something in his pocket officer Bryant claims.
He recognized Anthony Brown from the profile picture. He
had previously seen on the let-go app officer Bryant told
Brown to get down but Brian continue to
And Anthony Brown ran past officer Bryant officer Bryant
discharged his firearm twice striking Brown in the
buttocks. One-time Bryant stated that he fired it brown
because Brown had to look that he would try to get away at
all costs and was manipulating an object in his pocket and
appeared to be pulling it frantically which Bryant believed
to be a gun around also to be disobeyed verbal Direction
and Bryant believe brown match. The description of the
offenders in previous armed robberies.
The shooting was not captured or strike that brown any
other individual are then placed under arrest and Anthony
Brown received treatment at the hospital for his injuries.
The shooting was not captured on body-worn camera while
defending Ryan and officer and a horror. We're equipped
with body one cameras at the time. They did not activate
their cameras until after the shooting a gun was recovered
from the plaintiffs left pocket the Copa investigation
concluded Copa Copa concluded its investigation into the
shooting on August 29th of 2022 and Coppa found that
brought officer Bryant did violate Department policy on the
use of deadly force by shooting at at Anthony Brown. Hope I
found that evidence that Anthony Brown was manipulating an
item in his pocket was not sufficient to show that Anthony
Brown Was preparing to shoot officer Bryant to place him in
imminent fear of death or great bodily harm further Copa
found that shooting Brown was not his last resort. Hope I
found that the evidence showed that brown
And passed officer Brian and officer in a horror and then
was shot by Officer Bryant in the buttocks is he ran away,
found that there was sufficient time for officer Brian to
take cover or used tactical positioning or use other the
escalation techniques like a taser as an alternative to
firing his weapon. Hope I did seek separation of Bryant CPD
did not Concur and copas findings. However, the matter was
referred to the police sports one person panel and the one
person panel found that the superintendent did not meet its
burden to overcome copass recommendation. The case was
presented to the police board and some packs my two weeks
ago and we are awaiting a decision on the police board to
determine whether officer Bryant will remain a Chicago
police officer rounds physical injuries were one gunshot
wound to his left buttock. In this case. It is Undisputed
that the gun never left by Anthony Brown's pocket. It is
further Undisputed that officer Brown officer Bryant shot
Anthony Brown while he was running away and after you pass,
The police board case against officer Bryant is still
pending and the cost of the cost of defendant defense in
this case are reasonably High the fence cost to defend this
lawsuit through trial greatly exceed the recommended
settlement amount of $300,000 there for at the defendants
the Department of Law recommend settlement in the amount of
$300,000.
Any questions from members of the committee?
Sing no questions. Is there a motion to recommend approval
after 2? I'm sorry. I'll call them and tell her yes.
How many cases are pending against this officer or is that
something you can't there's no open pending cases against
the officer except for the one that's pending before the
police board for this case. No previous stripes on it now
help me the officer. No, thank you. And goodnight to you
all them and Rodriguez moves to pass all the alderman more
number item. Number one. That's Brown versus Bryant.
Correct. I get there. I will acknowledge your opposition
Alderman Rodriguez moves to pass all those in favor signify
by saying I
with the exception of
more albumin more Cardona
when Anne Curtis
We will report to do pass recommendation out at the January
24th meeting with the exception of those voting. No.
Item number two is item 6B is Jeffrey has a case number
2020 l000 476 in the amount of $375,000. So we are joined
by the department of laws Deputy Deputy Corporation counsel
Margaret, Mendenhall Casey is Casey. Thank you shared on
this matter is pending in the Circuit Court of Cook County
State Court. This case is a car accident and was Chicago
police officer Ronald Newman roll through a stop sign at
about 10 mph. The officer was not involved in the pursuit
and in the accident a car was hit and ringing and it's a
party as a result. The plaintiff had neck surgery the
department of Los recommend settlement in the amount of
$375,000 in this matter.
On September 10th of 2019 the plaintiff was inside of a car
at 85th. And Stony Island car was hit by the Chicago Police
Department car driven by Officer Newman at a time officer
11 with a passenger in the police car. And you provide an
explanation that officers were checking a license plate at
the time of the accident has car was unrelated to the
license plate track the airbags deployed and the driver
side windows shattered as a result of the impact in the
plane to Star.
The plaintiff claims officer Newman was negligent in failing
to stop at the stop sign and striking his car off cinnamon
passed away and was unable to give testimony in this matter
and him passing away was unrelated to this accident the
plaintiffs suffered herniation and subsequently had neck
surgery his medical bills where approximately $177,000 is
lost wages claims were approximately $48,000. If this
matter were to proceed to trial a jury could award damages
for past and future pain and suffering has a computer lots
of normal live in addition to the plaintiff's medical bills
and lost wages there for the Department of God recommend
settlement in the amount of $375,000.
Any questions on this item Alderman laspada? Because I was
going 10 mph or the officer's vehicle.
Or the plaintiff sued the testimony in this matter is that
the officer's vehicle was traveling at 10 mph at the time
of the accident.
Is that something they can be confirmed in any way?
I didn't review the GPS records which does not ping every
second button review the GPS records. It did appear to be
about that speed close to the accident.
Okay. Okay. Thank you. Thank you, too.
Is there a motion to recommend approval of item number 6 ft
Alderman Harris recommending do pass all those in favor
signify by saying I posed in the opinion of the chair. The
eyes have it and we will report this item out at the
January 24th city council meeting item 60-mile Kirk vs. The
city of Chicago case number 2019 El 13385 in the amount of
$2000000. We're joined by Margaret Mendenhall KCRW
Corporation Counsel on this matter.
Thank you, Jan. This matter is pending and stay Court in
this case. The plaintiff Maya Kirk was walking on the South
Street when a lamp pole fell and knocked her to the ground
Miss Kirk alleges that the city negligently maintain the
lamp full and questioned as a result of the accident. She
suffered a fracture thigh bone and had two subsequent
surgeries and sustained to scars to your body. The
Department of Law recommends a settlement in the amount of
2 million dollars for this matter on November 21st to 20.
19 at about 1:30 p.m. 47 year old Maya clerk Kirk scuse me
was walking at LaSalle Street near Lake a few blocks from
here plaintiff was struck in the back of the head by an
ornamental lamp pole and slammed to the ground review of
the 311 database did not reveal any complaints about the
polling question.
In 2018 C. Engage a contractor to perform a visual study of
nearly all the lamps in the city including the pole and
question the survey noted that this poll was resting the
classified the resting as routine after the survey no
subsequent action was taken regarding the pole prior to
this accident. The plaintiff was taken by ambulance to the
hospital and suffered a fractured thighbone requiring two
surgeries and leaving her with a permanent limp and
intermittent pain for medical bills are approximately
$255,000 in this case believe Advanced corrosion at the
base of the pole cause of Paul to collapse at trial
plaintiff May seek damages for disfigurement due to
scarring pain and suffering and loss of normal life for her
lamp there for the Department of Law and recommends a
settlement in the amount of 2 million dollars based on our
assessment of the injuries incomparable cases.
Thank you, Miss. Mendenhall vice-chair Conway followed by
all the men all the women Taylor.
Did she have a scar on her face? And if yes, could you tell
us the like lengthen location of that's sure so she had a
scar on her face a Half Moon Star as well as a long scar on
her leg.
So two skies in this matter while we talkin Omar from the
wire or like one inch on the forehead sure so describe the
scar is visible on both her face as well as the star that
is long on her leg or are both visible.
You don't have like approximate length of it or anyting of
which star of the fate of the face one. I have not measured
the facial scar but it is visible on her face and in my
past experience as a trial attorney a visible scar on has
been found to be compensable by the courts.
And I know you in our briefings you did talk about the
length of the scar on her leg, which goes from thigh.
2 past her knee is that accurate that is scratch their all
right.
Madam chairwoman just based on the notice issue and end.
I'm concerned about the amount of Damages if I could be
recorded to know please thank you. Thank you.
all the women Taylor
who wouldn't who did the assessments around the rusting is
that actual C. Employee? And what is happening with that
employee assessment of the poem question was done by a
contractor.
Is that contract on a no-hire list? No putting people on
that.
I don't know if the contractor is on the no-hire list.
I would like more forthcoming this on some of these
questions cuz we did discuss with in the briefing whether
or not the contractor could be held liable for any of this
damage and your research shows what Madam chair that is
information that I'm more than happy to convey to both you
as well as I'm older. I'm in Taylor on outside of the
public to the chair. Okay?
so that's problematic because we're paying for a service
and they had
they evaluated and said that it was rusting.
Why not repairing? Why was it not fixed and what has the
department done different to reassure that this doesn't
happen cuz we have a we have a smart lighting program, but
we got all of these old Pole Green poles that are now
trusting yourself or $2000000. We could have took two
million dollars and fixed a bunch of Pops instead of paying
out of
A a settlement is a what are the repercussions for that
that contractor? I'm certainly happy to have that
discussion with you after or certainly isn't that answer to
the chair Alderman above that though. I can say that the
Department of Transportation did a redesign that light pole
fixture so that it would not happen again, but that
question that you're asking is something that you should
have on a side discussion with the Department of Law. Is it
the Old Poles or the new polls? Is that what fell?
As as a chair said the design of the pole has been modified.
That didn't answer my question. Is it the new the ones we
paid for that are black with a little fancy light or a lot.
Then the old big green ones that where we kind of still use
the stuff. I questioned the inclusion in this matter was a
black pole.
It was a decorative Bowl. Yes. Are we is the city doing
something to reassure that this doesn't happen again? And
what is that?
The answer is yes, and I'm happy to share that information
with you after Alderman or through the chair.
So this is no disrespect to you. That's just a problem
because if you are asking me to vote on a settlement on
anything that does not give me the information and just a
public dollars or on one of the things that Alderman is
that we do hold briefings on these where a lot of these
questions that are through the chair questions that
Can be discussed so I would encourage you maybe the next
time to come to the briefings give us two weeks in advance
while we give you probably at least a week in advance, you
know, when the city council meetings are and when the
finance committees are you have advance notice that that so
I would just encourage you to come to a briefing.
Thank you. Almond Martin.
Making sure I just want to re-up to the committee
questioned / observation. I had in committee which has the
chief risk officer a relatively vacancy that was recently
failed through the chair would be helpful. I think for us
to know what her I'm near-term priorities are say
throughout the remainder of this year. I recognize that not
every single proposed settlement is something that's going
to fall on her radar in something that you can be able to
prioritize but nevertheless. I think a lot of these issues
are things that could potentially come across her desk
would be good to know proactively what you can be focused
on moving forward right as you mentioned in the briefing
all them and Martin I did make a commitment to have that
meeting with the risk manager.
Is there a motion to recommend approval of item number 60?
the Moon by Alderman Rosanna
Rodriguez Sanchez all those in favor signify by signifying
I all those opposed the opposition. I've noted as
vice-chair Conway.
Ann Taylor
and in the opinion of the chair the eyes have it to do past
recommendation will be reported out at the next city
council meeting on January 24th. I don't know her 60 Carter
as a special administrator of the estate of which field
Marshal who is deceased versus City of Chicago case number
2019 l004 603 in the amount of 5 million. We're joined by
Deputy Corporation counsel casing on this matter. Thank you
Cheri. This matter is pending in the Circuit Court of Cook
County State Court in this case paramedics mistakenly
determine that mister Whitfield Marshall was in that was
dead his family members arrived at his apartment 4 hours
later and discovered him to in fact be alive.
The plaintiff alleged that delay in treatment caused Mr.
Marshall to suffer brain damage and his family eventually
withdrew life support.
The plaintiff alleges that the paramedics willfully and
wantonly treated Mr. Marshall the Department of Law. I
recommend settlement in the amount of 5 million dollars in
this matter on February 20th, 2019 at approximately 2 p.m.
And employee of the Patrick Sullivan Apartments. The
apartment that Mr. Marshall resided at received a call
asking that a well-being check be performed on Mr.
Marshall. The employee went to Marshalls unit found him on
the floor and called 911 paramedics has now ski and
O'Malley arrived briefly as Mr. Marshall and determined
that he was dead the family arrived four hours later to
make preparations for the store Marshall's body heard Mr.
Marshall moaning and call 911.
Mr. Marshall was transported to the hospital where he was
resuscitated, but did not appear to regain Consciousness
the family decided to withdraw care or life support three
days after the accident paramedics has now ski and O'Malley
no longer work for the fire department.
Paramedics in this matter spent less than 15 seconds
assessing. Mr. Marshall and declared him to be dead. And
and when in fact he was alive if this matter were to
proceed to trial a jury could award damages for the pain
and suffering Marshall experience prior to his death the
loss of society and the grief and sorrow of his children
there for the Department of Law recommend settlement in the
amount of 5 million dollars for this matter.
Alderman Taylor
so
and it's probably question you not going to be able to
answer if they thought he was dead. What was the protocol?
Who were they supposed to call? Cuz I didn't hear you say
any of that and I don't know that that happened. I wasn't
sure I'm happy to answer that question on the protocol was
to call the Chicago Police Department today in contact the
family and make arrangements for mr. Marshall in the end.
That's what happened in this particular matter.
So they assumed he was dead and then call the police that's
crap. And so they didn't wait they didn't cuz they just
assumed he was dead. How long was the assessment of the
gentleman who they claimed was deceased approximately 15
seconds.
And you say these gentleman no longer work for the fire
department, but still receive a pension, correct?
I know you can't answer that. It's okay that that's
information on that. I'm happy to submit through the chair
to you all during Taylor. Alderman sees me vice-chair
Conway So based on the evidence here. My concern isn't
really liability. But it out of Damages. I mean no one can
predict. What a what a jury will do but based on the
plaintiff's
Well documented health problems that were discussed in the
settlement briefings. I don't think a jury would award five
million and therefore I asked to be recorded as a no. Thank
you.
alderman laspada
Thank you Jared. And I say this more for the Public's
edification than even for anyone giving testimony. I know
it must seem that we're approaching this with a certain
Grimm stoicism. I would only say that what what we learned.
In the briefings is truly heartbreaking and sad and if
that's not reflected in the dialogue here today that I
don't think that is reflective of The Compassion or grief
the council shares in my opinion. The the settlement is
more than justified by the actions that we know occurred
and I'll be happy to move to pass the moment arises I
concur with everything you just said, so is there a motion
to recommend approval of item number 60 move by Alderman
laspada recommending to pass all those in favor signify by
saying I
opposed all the men by Cher Conway will record you as a no.
anyone else
how many opinion of the chair the eyes have it and the
recommendation of do pass will be reported out at the next
city council meeting. Thank you all very much. Appreciate
you there being no further business before the committee.
Can I get a motion to adjourn?
Go buy all the men Irvine to adjourn all those in favor
signify by saying I met the opinion of the chairs. The eyes
have it. The committee on finance has adjourned the noon
everyone.