Philadelphia Housing Authority chief Carl Greene facing foreclosure (got $127M stimulus)

Philadelphia Inquirer ^ | Fri, Aug. 13, 2010 | Jennifer Lin , Inquirer Staff Writer

[Liz]

The mortgage foreclosure crisis has claimed an unlikely victim: Carl R. Greene, executive director of the Philadelphia Housing Authority (PHA). Wells Fargo Bank has foreclosed on Greene's $615,035 condominium in the upscale Naval Square development in the city's Schuylkill section. In a lawsuit filed July 27, Wells Fargo said the amount in dispute was $386,685.22.

Greene, 53, runs the nation's fourth-largest public housing agency and is one of the highest-paid public officials in the city. His salary is $306,370, and last year he got a $44,188 bonus. Kirk Dorn, a spokesman for Greene, confirmed Thursday that the housing chief was "involved in a dispute with his mortgage company." "It's unfortunate that the dispute is now public, but he plans to deal with the matter in private," Dorn said. Dorn added that Greene "knows people will find it hard to understand how he could be involved in a possible foreclosure proceeding on his home, but he would prefer not to say more about it at this time."

Greene bought his three-bedroom, 2,100-square-foot condo in 2007. Wells Fargo is not seeking to evict him. Like any other Philadelphia homeowner threatened with losing a house, Greene will have to participate in the city's mortgage-foreclosure program. He is scheduled to appear Sept. 16 in the courtroom of Judge Annette Rizzo. PHA, a state authority, is funded mostly by the U.S. Department of Housing and Urban Development and is responsible for providing housing for Philadelphia's poor. It maintains rowhouses and apartments for low-income residents and develops affordable housing for purchase. Greene took over PHA in 1998, after serving as executive director of the Detroit Housing Commission. He also worked for housing authorities in Atlanta and Washington. Under Greene, PHA has aggressively eliminated outdated public-housing projects that concentrated families in fortresslike structures. Instead, the agency has developed low-rise communities with a mix of rental units and affordable homes for purchase. The developments often helped transform neighborhoods, such as the Hawthorne section of South Philadelphia.

Greene has drawn praise for his results in building housing and reviving neighborhoods and criticism for his sometimes combative, forceful style. During the administration of President George W. Bush, Greene sued HUD and accused the agency of punishing PHA for not giving land to the politically connected Philadelphia music producer and developer Kenny Gamble. The case was resolved out of court.

With the Obama administration, Greene has drawn attention and accolades from HUD for quickly putting to use economic-recovery money. In the last two years, PHA has received an additional $127 million in stimulus money that Greene has used to build or renovate 1,200 housing units.

[Liz]

Can this Bozo prove where he spent $127M stimulus? Not to mention the millions PHA got from HUD. Maybe his nose knows (/snix)?

Greene's $306,370 salary (last year he got a $44,188 bonus) comes from taxpayer who are supposed to believe high salaries pare meant to attract and keep "major talent." These "major talents in govt jobs" are getting paid by taxpayers who constantly struggle. There are too many people making a fat living in government. How many people on Greene's staff are getting big bucks?

Carl R. Greene's salary as executive director of the Philadelphia Housing Authority is $306,370 a year (last year he got a $44,188 bonus).

Based on his income and probable mortgage payment he has a +/- 14% front end debt-to-income ratio. Most people have a 30-40% DTI. And this loser gets foreclosed on? This guys runs PHA and can't even manage to run his own finances properly? Talk about having unqualified people in positions of power.

How did that "stimulus" money help out the economy? Spending $165,000 tax dollars per unit to build and then selling said units for between $30,000 and $60,000 isn't a stroke of genius. It borders on the absurd. $127 million basically went into the toilet.

[cranked]

They tell me KARMA is a mofo..... =.=

[Lurker]

Greene took over PHA in 1998, after serving as executive director of the Detroit Housing Commission.

Well that program is such a stunning success it's no wonder he gets the big bucks in PA.

[Ann Archy]

OMG he’s BLACK!! I’m SHOCKED!!

[Ann Archy]

$306,000.00 SALARY and a $44,000.00 BONUS to GIVE OUT OUR MONEY TO OTHER PEOPLE???? OMG!! ENOUGH!!!

[Liz]

CNBC's outspoken Rick Santelli opined: Obama's so-called stimulus spending went to govt payrolls---and not infrastructure improvement---Obama and the Congress lied when they sold the plan to taxpayers.

The $700B TARP Bailout is now being called, "A MASTERFUL DECEIT." In HR 1424, there are enough rules, regs and CONGRESSIONAL OVERSIGHT REQUIRED that not one Thin Dime should have been misspent.

The fact is Congress flagrantly violated the law by throwing tax dollars around like it was popcoon....to people that had connections. Congress screwed-over the taxpayers. They should be charged with several felonies.

TITLE I—TROUBLED ASSETS RELIEF PROGRAM (required 'Congressional Oversight' sections listed)
Sec. 101. Purchases of troubled assets.
Sec. 102. Insurance of troubled assets.
Sec. 103. Considerations.
Sec. 104. Financial Stability Oversight Board.
Sec. 105. Reports.
Sec. 107. Contracting procedures.
Sec. 108. Conflicts of interest.
Sec. 111. Executive compensation and corporate governance.
Sec. 116. Oversight and audits.
Sec. 118. Funding.
Sec. 119. Judicial review and related matters.
Sec. 121. Special Inspector General for the Troubled Asset Relief Program.
Sec. 125. Congressional Oversight Panel.
Sec. 127. Cooperation with the FBI.
Sec. 129. Disclosures on exercise of loan authority.

====================================

FBI TIP PAGE http://tips.fbi.gov/ (you may remain anonymous)

[Ann Archy]

His salary is TOTALLY ENOUGH to COVER HIS MORTGAGE!! WTH is going on?

[Liz]

Greene took over PHA in 1998, after serving as executive director of the Detroit Housing Commission that was such a stunning success it's no wonder he gets big bucks in PA.

Beautiful downtown Detroit........Former Detroit Mayor Kwame Fitzpatrick's home.

[cranked]

He may be participating in that going mortage trend: underwater home owners purposely defaulting....if true, criminal if you ask me.

[South Hawthorne]

Instead, the agency has developed low-rise communities with a mix of rental units and affordable homes for purchase. The developments often helped transform neighborhoods, such as the Hawthorne section of South Philadelphia.

Spending $165,000 tax dollars per unit to build and then selling said units for between $30,000 and $60,000 isn't a stroke of genius. It borders on the absurd.

Being a long time resident of the Greater Hawthorn Area, I had a first hand look at the redevelopment.

And yes, it has come a long way, but your point is spot on: At what cost? These "homes for low income people" likely cost more than your 165,000 figure (I believe I'd read that it was about $280,000).

Why do low income people need central air, washers, dryers, driveways and garages???

As soon as the houses hit the market, they were snapped up by anyone connected with the criminal enterprise known as City Hall and flipped.

Great use of our tax dollars, but as long as we have one party rule, it's business as usual.

[Liz]

Greenes' govt salary is more than enought to cover his mtge......WTH is going on?

Ask his nose (/snix).

[Liz]

Being a long time resident, I had a first hand look at the PHA redevelopment.These "homes for low income people" likely cost more than the $165,000 figure (more like $280,000). As soon as the houses hit the market, they were snapped up by anyone connected with the criminal enterprise known as Philadelphia City Hall and flipped. Great use of our tax dollars, but as long as we have one party rule, it's business as usual.

Thanks for the realtime report. Nice addition to the thread.

[Ouderkirk]

can't even manage to run his own finances properly? Talk about having unqualified people in positions of power.

Nope, not that at all. By being foreclosed upon, he does not get evicted, gets to keep his missed mortgage payments in his pocket, and will get a mortgage modification to a lower interest rate and the arrears forgiven. He's gaming the system.

[Liz]

Greene may be participating in that going mortage trend: underwater home owners...... purposely defaulting....

L/E should take a look at his tax returns---particulary what he claims for "interest income." Keep in mind, stolen money is taxable.

IRS TOLL-FREE 1-800-829-0433 (you may remain anonymous when reporting tax fraud)

===================================

POSSIBLE CHARGES Official acts prohibited, misuse of Congressional funds, abuse of public office, violating oath of office, misuse of government position, abuse of government power; conflict of interest; influence buying; conspiracy to deceive; misuse of elective office, collusion, conspiracy to collude.

All official campaign finance records filed with the FEC, and state election commission, should be scrutinized for possible violations. Determine if Greene made contributions that are legit and whether Greene illegally used campaign funds, and/or made contributions to influence Congressional votes.

Greene may have colluded to give something of value, a govt gratuity, a job, etc, in exchange for getting govt monies.

[oldironsides]

Camden NJ is moving on with a housing project by the government. Years ago they ripped down a group of homes that were in a bad neighborhood. Drugs and crime ran wild there. They announced yesterday on the news the place will be rebuilt with money from the government. It will cost $350,000 a home and the home will be “green”. Can you believe they are placing homes that cost that much in a bad neighborhood? The builder will get how much? How will they get a mortgage for that much? The government is being run by crazy people

[Liz]

By being foreclosed upon, Greene does not get evicted, gets to keep his missed mortgage payments in his pocket, and will get a mortgage modification to a lower interest rate and the arrears forgiven. He's gaming the system.

Nice take. But he has to meet some criteria.

L/E should take a look at his tax returns---particulary what he claims for "interest income." Keep in mind, stolen money is taxable.

IRS TOLL-FREE 1-800-829-0433 (you may remain anonymous when reporting tax fraud)

[moovova]

Quick math tells me...

Sales price:............$600,000
5% Down:..............-$30,000 (more like Zero down...)
Loan principle:......$570,000

6% mort rate

P/I payment:...........$3,417
Taxes:.....................$1,000
Insurance:..................$300
SUB-TOTAL:.........$4,717
plus HOA dues:.........$500
TOTAL:..................$5,217

Let’s just round that up to $6000 a month just to be sure I didn’t underestimate anything.

Annual salary $360,000 divided by 12 for gross monthly salary of...$30,000!!!

Someone with a gross monthly salary of $30,000 can’t make a $6,000 house payment?

What’s wrong with this picture?

[CTOCS]

See Post #6

“throwing tax dollars around like it was popcoon....”

Hey, Liz. You sure this is a typo? Maybe a Freudian Slip?

[longtermmemmory]

You have to make the bribe payments to repay those who put you in the job....or else.

(/s)

[Liz]

Oops-—should be popcorn.

[Ouderkirk]

He’s pulling in over $300K a year and he’s not making mortgage payments?

Nobody is that stupid.

There may be certain criteria to modify a mortgage, but he’s in a position to influence who processes his application. There may be an uproar for a few weeks, and it will die down. Then he’s in the clear to proceed to a modification to a sweetheart deal (2.25% APR and arrears forgiveness) behind closed doors with someone with whom he has influence/relationship of some sort.

Time will tell.

[stephenjohnbanker]

“He’s pulling in over $300K a year and he’s not making mortgage payments?

Nobody is that stupid “

Soooooo...18000 a month net, and he can’t make the strokes on the house?

Cokehead?

Gambler?

No sale!

[Liz]

18000 a month net, and he can’t make the strokes on the house? Cokehead? Gambler?

It's either coke, gambling, ladies of the evening on speed dial..........or he's got several mighty expensive girlfriends.

[Oldpuppymax]

Well like Hussein and Moochelle, he be “movin’ on up!!” So isn’t whitey supposed to pay for his home?? Or maybe it should come from Hussein’s stash?? After all, being black and required to actually PAY for something...that’s CLEARLY racism!!!

[Liz]

Be reasonable-----good dentists are expensive.

[stephenjohnbanker]

Hmmm...he must have an “in house” dentist.

[stephenjohnbanker]

” It’s either coke, gambling, ladies of the evening on speed dial “

Possibly all of the above ;-)

[Liz]

.......coke, gambling, ladies of the evening on speed dial.........

All available across the river in Atlantic City.

They need to check AC's high roller list---- every visit is noted, every dime wagered, and every transaction made is recorded.

Casinos are very cooperative with L/E b/c they want to protect their licenses.

[Liz]

And don’t forget money laundering is e-a-s-y with untraceable casino chips....although some now are embedded with traceable computer chips.

[stephenjohnbanker]

” They need to check AC’s high roller list—— every visit is noted, every dime wagered, and every transaction made is recorded.

Casinos are very cooperative with L/E b/c they want to protect their licenses. “

Hey Liz, great idea!

[Liz]

RE: Cohee

They need to check AC’s high roller list—— every visit is noted, every dime wagered, and every transaction is recorded. Casinos are very cooperative with L/E b/c they want to protect their licenses.

New Jersey Casino Control Commission
Arcade Building
Tennessee Avenue & Boardwalk
Atlantic City, New Jersey 08401
Tele 609-441-3799

[Ouderkirk]

Why don’t you think that this ass clown is looking to scam the system as opposed to being some sort of lowlife.

think about it for a while.

He’s supposed to be making a $6000 a month mortgage payment. So he stops paying it for 20 months and he’s got $120K in cash.

Go for the loan mod (which has arrears forgiveness because the arrears is mostly interest and very little principle this early in the loan) Catch up the principle balance as part of the loan mod (a pittance at this point), and shazam he’s pocketed a quick $100K easily without having to steal it.

He was hoping that he could game the system and nobody would catch on to what he was doing. It may have just slipped by and gone straight to modification with little notice.

crackhead, gambler, whatever.....NO !!!

He’s nothing more than a thief.

[stephenjohnbanker]

” Why don’t you think that this ass clown is looking to scam the system as opposed to being some sort of lowlife.

think about it for a while.

He’s supposed to be making a $6000 a month mortgage payment. So he stops paying it for 20 months and he’s got $120K in cash. “

Good point O. It could be either way.

A rendition of an old song....

$120,000 fer nuthin, and his house fer free” ;-)

[stephenjohnbanker]

Great tagline, by the way.

[CutePuppy]

Then he’s in the clear to proceed to a modification to a sweetheart deal (2.25% APR and arrears forgiveness) behind closed doors with someone with whom he has influence/relationship of some sort.

Yes, he's using the strategy of "refinancing" by "walking away" from the mortgage. Government made it easier to do, and now not just sub-prime borrowers but "everybody is doing it" instead of getting stuck with underwater loan. That's what happens in deflationary times / markets.

High-End Foreclosures Are Next - CNBC, 2010 May 27, by Diana Olick

Another problem is that with home prices continuing to fall, more and more borrowers, who are essentially just renting their mortgages now because they will never see any home equity, are walking away. Even if the mortgage payment is low, the property taxes and home maintenance costs are padding that payment, and without an upside to the investment, there’s simply no reason to pay.

Suffice it to say, the foreclosure crisis, on the high and low ends, is not getting any better. It’s great that we’re seeing more sales action in the “distressed” market, but that’s not a real organic recovery. Now that the administration has managed to lower interest rates for conforming loans, they have to focus on jumbos, on jumbo rates and modifications. These are not all million-dollar homes of the rich and famous. In many markets, especially urban markets, a million-dollar home is a basic three bedroom, two bath on a postage stamp lot.

Should Homeowners Be Able To Walk Away From Mortgage? - CNBC, 2009 November 30, by Mark Coba

Should homeowners who are behind in their mortgage be allowed to just walk way from the payments? A University of Arizona law professor suggests that maybe they should.

While not recommending that homeowners forgo their responsibilities, Professor Brent White told CNBC Monday that there is a different set of rules for the business community and homeowners.

"There's a double standard when it comes to banks and homeowners," said White. "Businesses often walk away from bad contracts, but homeowners can't. The banks need to modify bad loans."

White recently issued an academic paper saying that he's surprised that more of the 15 million US homeowners who have underwater mortgages — or mortgages that are worth more than the value of the house — are still continuing to pay.

White said he was not advocating what homeowners should do, but raising a key issue — that homeowners need to think what's best for them. .....

But White, in his paper, is throwing ethics right out of the equation. He says, people are too worried about the feelings of shame and embarrassment of a possible foreclosure and "ignore the powerful financial reasons for doing so."

White attacks the banks in his thesis for "being slow to modify troubled mortgages and reluctant to reduce principal debts" with falling housing prices. He says homeowners have to think about themselves and [do what's right] for them.

And White says the penalties for skipping mortgage payments are "not as bad as people think." He says that "if you stay current with other creditors, one can have a good credit rating within two years. Most individuals should be able to plan in advance for a few years of limited credit." .....

He's gaming the system

Of course; he helped create the "system" so it can be gamed, and now he leads by example... showing how it's done to people who didn't get the message yet - put it on the bank's or the taxpayers' tab.

[TopQuark]

"WTH is going on?"

Good question. Purhaps we should reserve judgment until we know the essential details. Liz instead went off the deep end about the housing programs and TARP, as if that had anything to do with the issue at hand.

[Gabrial]

Perhaps he feels entitled not to pay his mortgage.

What an asshat. I hope they throw him out on the street.

[HollyB]

Maybe he’s entitling himself to one of those zero interest loans that I recently read about.

[Tribune7]

ping

[kcvl]

Carl R. Greene’s money woes did not start with the mortgage foreclosure on his South Philadelphia condominium, news of which surfaced this week.

Court records show the IRS filed a $52,000 lien in December against the executive director of the Philadelphia Housing Authority, for non-PHA income earned from 2002 to 2006. He paid off the lien in March.

Other court documents indicate that the 53-year-old Greene has had more than personal financial issues.

In 2008, he was sued by a lawyer who said she was fired as PHA’s top attorney because she would not “engage in any unethical practices.”

The lawsuit, by New Jersey lawyer Maria Allen Phillips, described a strange and unsettling agency where she was not permitted to put anything in writing or have full access to actions pending against PHA. She came to believe that she was being kept in the dark about “secret cases” involving claims of “sexual harassment and wrongful termination” against Greene.

The suit was ultimately dismissed for “lack of prosecution,” meaning she did not pursue it.

http://www.philly.com/philly/news/breaking/20100813_Earlier_problems_for_PHA_chief_emerge.html

[kcvl]

Greene stopped paying his mortgage roughly at the time he was settling his dispute with the IRS, on March 17.

The lien was filed Dec. 28. According to the lien, Greene failed to pay $8,859.02 in taxes in 2002; $25,021.45 in 2003; $6,390.45 in 2005; and $12,479.44 in 2006.

The filing did not explain how the taxes were determined, but said the money owed fell under the category of “small business/self-employed.”

[kcvl]

Carl R. Greene, PHA’s executive director, bought the three-bedroom, 2,100-square-foot condo in the upscale Naval Square development in 2007. He put down $215,000 in cash and took out a $400,000 mortgage, city records show.

Greene, 53, stopped making payments on or around April 1, and three months later owed more than $7,500 in missed payments and late fees, according to the bank’s July 27 lawsuit.

http://www.google.com/hostednews/ap/article/ALeqM5iOzS33CoS2jKf7a3GNW5OiO0QLFAD9HIO1KO0

[kcvl]

Greene took over at PHA in 1998, after previously working as executive director of the Detroit Housing Commission, and also working for housing authorities in Atlanta and Washington, D.C.

Greene, who is unmarried and has no dependents, earned a base salary of $306,370 plus a $41,188 bonus last year, Dorn confirmed.

[Liz]

Plus he's got a great dentist.

[WhyisaTexasgirlinPA]

Unmarried at age 53, no kids.....he also has a scholarship named for him and to qualify you only have to carry a 2.0 gpa. Wow, reach for the stars!

[WhyisaTexasgirlinPA]

Another interesting thing to note: he was only making $190K in 2003 and got a 10% bonus that year - so from 2003 to 2010 his salary almost doubled.

[Liz]

Interesting .............Greene was only making $190K in 2003 and got a 10% bonus that year - so from 2003 to 2010 his salary almost doubled.

That's an old govt fraudster's trick to conceal actual income from taxpayers. The fraudster publicizes one salary for public consumption, then submits documents for a higher salary.

Taxpayers should demand to know the scope and dimension of deceptive and intentionally ambiguous information contained in documents Greene filed with govt agencies. Greene may have violated RICO (the Racketeer Influenced and Corrupt Organizations Act) by generating fraudulent documents to extort taxpayers and steal govt monies.

L/E should place a hold on all Greene's official documents. Stealing and conveying (or destroying) official govt records nets 10 years in prison and a $250,000 fine.

L/E should also look at Computer Trespass--a class C felony if access is made with the intent to commit a crime and/or the violation involves a computer or database maintained by a government agency.

ACTION Examine all of Greene's perks, expense accounts, unauthorized 6-figure bonuses, pensions, tax-evading annuities, etc. etc etc.

THE BIGGIE ---- Greene's tax returns will reveal declared income compared with govt documents and outlays. In particular, examine “interest income” on his IRS returns.

[hal ogen]

This can’t be true. He is a hard-working minority and a DIMocRAT to top it off. There must be mis-reporting. Are you sure the guy isn’t an angry white Republican stealing from “people of color”??

[SunkenCiv]

Thanks Liz.

[Lancey Howard]

I am constanatly hearing this steaming pantload Greene touting all the great work PHA has done in radio commercials. I often wondered how much those radio commercials were costing the taxpayers.