The Tenant Advocacy Project provides legal services, pro se advice and training to tenants, and seeks opportunities to reform Maryland’s landlord-tenant law. In FY08 the PJC provided advice and limited representation to 264 families facing eviction for failure to pay rent and who were seeking to have serious health and safety concerns addressed through the rent escrow process. PJC advocates also provided 13 community outreach / tenant rights trainings at various tenant, community, and service organizations, which reached more than 337 people. In addition to the traditional focus on tenant rights, the PJC has responded to the increasing foreclosure crisis by arguing for fair procedures and protection for low-income homeowners and tenants of properties that are being foreclosed.
Circuit Court Adopts PJC Argument to Issue New Limits on Tax Sale Foreclosure Attorneys Fees.On December 12, 2007, the Honorable Evelyn Omega Cannon of the Baltimore City Circuit Court issued an opinion setting significant limits on attorney fees and expenses that Baltimore City homeowners must pay to redeem their homes after a tax sale. The Public Justice Center had filed an amicus brief filed at the request of the Court and argued that the Court should apply a lodestar analysis as a starting point to determine a reasonable hourly rate and a reasonable number of hours attorneys should spend on these cases, and urged the Court to strike the right balance between the documentation requirements of the customary lodestar approach and nature of the work performed in these cases. In a detailed and well-reasoned opinion, Judge Cannon used a lodestar framework to establish a presumptively reasonable attorney fee of $1300. She also issued rules significantly limiting expense claims, will require plaintiffs' lawyers to submit clear documentation under oath, and will require disclosure of any financial interests they or the plaintiffs have in any entity that performs services on the cases. Concerning the PJC's role in aiding the Court in its deliberations, the opinion includes the following:
"The Court cannot thank Ms. Gardner and PJC enough for their participation in this process. As discussed in greater detail, tax foreclosure cases are most often filed by attorneys with expertise in that area but defendants are usually pro se and even when represented by lawyers, are often represented by counsel with limited familiarity with tax foreclosures. PJC is intimately familiar with documentation for attorney’s fees and expenses, and spent time to develop a great deal of familiarity with tax foreclosures to write the memorandum for the Court. The result was that PJC raised the issues that need to be addressed. PJC’s participation confirmed the merits of our adversary system and, specifically, the need for skilled lawyers to represent all interested parties."
The impact of this case is substantial: If the attorney fees charged to homeowners to redeem their houses in 80,000 tax foreclosure cases drop from an average of $3000 to $1300, that's $136 million of savings to Baltimore homeowners every year.
Griffin v. Bierman, Court of Appeals: PJC Brief Challenges Due Process in Foreclosures. On December 5, 2007, the Public Justice Center, along with nine other national and local consumer and housing advocate amici, filed an amicus brief in support of the plaintiff in Griffin v. Bierman in the Maryland Court of Appeals, challenging whether Maryland's minimalist notice to homeowners of a foreclosure sale meets constitutional due process requirements. The plaintiff was represented by Public Citizen Litigation Group, Civil Justice, Inc., and Scott Borison of the Legg Law Firm. Specifically, in light of the fact that Maryland law allows foreclosure sales to be held a mere 15 days from the docketing of the action to foreclose, the PJC urged the Court of Appeals to extend Maryland due process to hold that the method of notice of these proceedings should be personal service. Unfortunately, a unanimous court rejected the due process argument and punted to the Legislature on what it characterized as policy arguments made in the amicus brief.
Montgomery County v. Glenmont Hills Associates, Court Victory in Source of Income Discrimination in Montgomery County. On November 30, 2007, the Maryland Court of Appeals delivered a resounding victory to local governments and low-income renters in a case in which the Public Justice Center participated in the preparation of an amicus brief. The decision held that in Maryland a local government may prohibit, as part of its fair housing law, discrimination by landlords on the basis of the applicant's source of income. The purpose of such a prohibition is primarily to prevent landlords from rejecting low-income applicants because they need to use a federally funded or similar government voucher to help pay their rent. The decision protects Montgomery County's fair housing law and similar provisions in Howard County and Tacoma Park. It also preserves the option of passing such laws for other Maryland jurisdictions. But its importance extends beyond Maryland, because landlords across the country have begun challenging similar local provisions, and this decision should help determine the trend for courts in other states to follow. The PJC participated in the preparation of one of three amicus briefs filed in support of the county. The landlord filed a petition for writ of certiorari in the U.S. Supreme Court, which was recently denied.
Rental Housing Coalition Victory: Passage and Implementation of “Clean Streets Bill” in Baltimore City Eliminates Public Dumping of Eviction Chattel and Reduces Number of Families Put on Street by 33%.
In 2004, the PJC organized the Rental Housing Coalition, composed of tenant and community advocates, to advocate for reform of Maryland’s landlord-tenant law. The first objective, and now first victory, was to end the old practice of allowing landlords to dump eviction chattel in the public street, and evicting tenants without notice of the specific date of the scheduled eviction. The bill was passed by the Baltimore City Council on August 17, 2007, signed by the Mayor, and went into effect on October 1, 2007. The bill provides that for the first time, tenants will be notified of the date on which the sheriff is scheduled to evict the tenant by first class mail and certified mail at least 14 days in advance of the eviction and then posted on the property at least 7 days in advance of the eviction. Second, the ordinance provides that any property left in the premises after the eviction is executed is considered abandoned. The landlord may give the goods to charity or may properly take them to a dump, but is prohibited from dumping them in the public right of way, as has been the practice. Public dumping is now subject to a $1,000 per day fine. The City, and its taxpayers, will save about $800,000 per year by not sending out Department of Public Welfare trucks to clean up the chattel in the streets.
Passing a law is only the first step towards actual reform however. The PJC wrote the attached booklet – “Evictions in Baltimore City: Procedures for Tenants and Landlords” -- for the Rental Housing Coalition to explain the new law to landlords and tenants. The booklet was approved by a working group of landlord representatives, district court judges, the Sheriff, and the City Law Department. Approximately 15,000 copies of the booklet have been distributed at the District Court and by tenant and community organizations throughout the city. The City Law Department and many nonprofits also have the booklet posted on their websites in an easy-to-download or print format.
It is apparent from public records that the Clean Streets Bill has been a success. First, public dumping of eviction chattel has been virtually eliminated. Second, the number of evictions being executed by the sheriff on tenants who are still present has been reduced by one. This specific notice is helping tenants to make arrangements to pay the rent to stop the eviction, or to move themselves and their belongings out of the premises before the Sheriff actually evicts them.
Clean Streets 2: Applying Clean Streets Principles to Foreclosure Evictions in Baltimore City. Through the Clean Streets bill involving tenants being evicted from rent court, we also learned that there are other legal proceedings that result in a person being removed from the housing unit and their belongings dumped on the street, including evictions of owners who default on their mortgage and are foreclosed upon, tenants who may have paid the rent to the owner but are evicted when the owner is foreclosed upon, occupants of a house after a tax sale foreclosure, and occupants if a house is sold and foreclosed upon to satisfy a lien against the owner. In all these “judicial” sales, there may be an owner / tenant / occupant of the house who will be evicted by the Sheriff. Unlike the landlord-tenant scenario, these evictions are ordered by the Circuit Court and are directed to a separate office of the Baltimore City Sheriff to be executed.
The City Law Department and the Rental Housing Coalition (represented by John Nethercut for the PJC and Dan Pontius for the CPHA) met with representatives of the foreclosure bar on December 12, 2007. We drafted a new city ordinance, Council Bill 08-0065, that would extend the principals of no dumping of eviction chattel in the street and notice to all occupants of the scheduled eviction date to anyone who is removed from a house regardless of the proceeding. The PJC testified in support of the bill, and it was unopposed. The bill was enacted on June 12, 2008 and went into effect on August 11, 2008. The PJC will now work with the Sheriff, foreclosure bar, and City to make sure that the bill is implemented and to gather information on the number of tenants who are being evicted through judicial sales.
Baltimore City’s 10-Year Plan to End Homelessness. The PJC was appointed to the Homelessness Prevention Workgroup, as part of the Baltimore Homeless Services effort to create a 10 year plan to end homelessness. The final plan was adopted in January 2008, and contained three significant recommendations of the PJC: (1) passage of the “Clean Streets” notice requirements for tenants (which has now been accomplished), (2) additional funding for legal representation and education of tenants, and (3) adoption of a pre-court eviction notice to reduce the number of tenant evictions.
Tenant and Foreclosure Advocacy in the 2008 Session of the Maryland General Assembly.
Senate Bill 512/House Bill 1344
STOP Tenant Retaliation Bill
Lead Sponsors: Sen. Jones (D-Baltimore City), Del. Glenn (D-Baltimore City)
PJC Position: PJC CENTERPIECE LEGISLATION
Legislative Disposition: Unfavorable Report- Senate Judiciary Committee (5-6)
This bill served as the centerpiece of the PJC and the Rental Housing Coalition’s legislative agenda for the 2008 session. It sought to correct an anomaly in Maryland law which made it nearly impossible for tenants to successfully prove that they were being illegally retaliated against for engaging in legally protected actions such as reporting housing code violations or joining a tenant’s organization. We argued that it was past time for Maryland to move its law into agreement with the majority of the United States (and our own Montgomery County) by allowing tenants their day in court. Despite an aggressive legislative education campaign and an incredible list of witnesses (including heart-rending testimony from ACORN tenants and CASA of Maryland tenant organizers), we fell just one vote short when the time came for the vote to be called.
HB 1241
Lead Poisoning Recovery Act
Lead Sponsors: Del. Rosenberg (D-Baltimore City)
PJC Position: SUPPORT with testimony
Legislative Disposition: Unfavorable Report in House Judiciary
This bill would have changed the standard of liability for negligence and product liability cases involving lead based paint poisoning in Maryland and would have established a Maryland Lead Restitution Fund to provide resources to critical prevention and lead abatement programs in Maryland. The PJC supported this legislation as a solid step towards ensuring accountability for manufacturers of paint products who irreparably damage the lives of disproportionately poor and minority Maryland children. In addition, the PJC saw the bill as a responsible step, in tight fiscal times, towards ensuring that programs which seek to educate Marylanders about the dangers of lead paint poisoning are adequately funded.
SB216/HB365
Real Property-Recordation of Instruments
Lead Sponsors: Governor O’ Malley (Senator Pugh) (D-Baltimore City)
PJC Position: SUPPORT with testimony, lobbying, and workgroup participation.
Legislative Disposition: SIGNED INTO LAW
This bill arose from the recommendations of the Governor’s Homeowner Preservation Task Force in response to the rash of recent foreclosures on Maryland’s homeowners. It sought to, among other things, extend the requirements for time and type of notice required before beginning foreclosure proceedings. The PJC supported this legislation even while proposing an amendment which requires personal posting of a foreclosure notice on the property as an additional safeguard and notice to both homeowner and any possible tenants living on the property. The PJC views passage of this legislation as a measured but necessary step towards protecting the rights of Maryland’s homeowners and tenants, many of whom are braving the extremely formidable combination of bad economic times and predatory lending institutions, in an attempt to stay in their homes.
SB 854/HB 1211
Tax Sales/Redemption Payments
Lead Sponsors: Sen. Jones (D-Baltimore City), Del. Oaks (D-Baltimore City)
PJC Position: Support with Lobbying
Legislative Disposition: SIGNED INTO LAW
This bill sought to, among other items, cap the amount of attorneys’ fees which are allowed to be charged to homeowners seeking to redeem the right to their property. The PJC became heavily involved and participated in the workgroup which came to a carefully crafted compromise which, while not perfect, represented a substantial step towards ensuring that all parties involved in tax sale foreclosures are treated fairly. These increased protections are of particular importance to low income Marylanders who are most often at the heart of tax sale foreclosures and least likely to be able to access competent and affordable private counsel to protect their rights.
SB 557/HB 589
Lead Poisoning Prevention Act of 2008
Lead Sponsors: Sen. Gladden (D- Baltimore City), Del. Oaks (D-Baltimore City)
PJC Position: SUPPORT with testimony
Legislative Disposition: SIGNED INTO LAW
This bill requires application forms for licenses for home improvement to require specific lead paint certification information and would also modify the definition of lead safe housing. The legislation would also allow tenants of properties whose owners fail to comply both to be immediately released from any lease obligations, but to also receive compensation for moving expenses the tenant is forced to incur. The PJC supported this bill along with its lead sponsor, the Coalition to End Childhood Lead Poisoning, as a critical step forward towards ensuring both the safety of Maryland’s housing stock and that low income Marylanders are never forced to choose between staying in an unsafe property and breaking a lease or remaining because of inability to be able to afford to move.
HB 1398/SB 535
Foreclosure Moratorium
Lead Sponsors: Senator Muse (D-Prince Georges Co.), Del. Valderrama (D-Prince Georges Co.)
PJC Position: SUPPORT through testimony and lobbying
Legislative Disposition: Legislature took no action.
This bill would have forbidden foreclosure actions across the State of Maryland absent a showing by the lender that the action was not the result of predatory lending activities. The PJC supported both this bill and its Prince Georges Co. exclusive companion (SB 532/HB 1035) as a responsible way to ensure that predatory lending practices are given the proper scrutiny they deserve. In addition, a moratorium would have given homeowners struggling to save their homes additional time and tools as state and federal lawmakers were expected to pass additional protections and assistance to allow them to stay in their homes.