Aprrl2,2012

Dear Commissioners:

On January23 of this year, the Board requestedthat RSB staff follow the City of Berkeley's considerationof moving city money into an institution that offers more community benefits than our current bank, Wells Fargo.

At that time, we only askedthat our Executive Director look into public agencies- including Berkeley - that may move'their money, and report back:

Authorize the Berkeley Rent Board ExecutiveDirector to track the status of public agencies,including the City of Berkeley,in conducting researcharound or taking action to move their account holdings to a communitybank, credit union, or other alternate financial institution. Requestthat the BerkeleyRent Board ExecutiveDirector report back to Rent Stabilization Board Commissionersin no more than ninety (90) days on any findings.

I feel strongly that banking with V/ells Fargo contradictsthe Rent Board's mandateto "protect tenantsfrom unwarrantedrent increasesand arbitrary, discriminatory, or retaliatory ," becauseWells Fargo is known throughout the Bay Area and the nation as one of the worst violators of the tenantprotections in the national Protecting Tenantsat Act, as well as a violator of local laws offering even more protectionsto Berkeley residentswho rent.

Do a quick Google search,and you'll seewhat I mean.Attached here for your convenienceis an article by former Berkeley RSB CommissionerPaul Hogarth, which discussesa letter, signed by virtually all the progressivehousing organizationsin San Francisco.The letter cites Wells Fargo's large profits and details the bank's unfair and illegal practicestowards tenants.

I hope this Board can have fuither discussionwhen we get our ED's report, and I also hope that discussionmay lead us to direct staff to take more decisive action.

Sincerely, CommissionerHarr

http://www.beyondchron.orglarticles/Occupy_San_Francisco_Targets_Wells_Fargo_973 6.html BeyondChron:San Francisco's Alternative Online Daily News Page1 of2

OccupySan Francisco Targets Wells Fargo

by Paul Hogarth,201 1 -1 2-05

Severalweeks ago, I lamentedhqw the movementwas drifting- from highlighting inequalityto the right to camp out in publicsquares. But this weekend,I joined 'smarch through local neighborhoods hit hard by realestate speculators - and ending at the mainWells FargoBranch downtown. What I saw was a movementwith a renewedfocus that can sustainand buildmomentum going fonrvard. Whether it's predatorylending that resulted in ,or riskyschemes that financed Ellis evictions and CitiApartments'empire building, Wall Street banks like Wells Fargo have directlyled to the mass displacementof the 99%. Working with San FranciscoTenants Union, ACCE and other establishedhousing groups, OccupySF went to WellsFargo with a listof nineconcrete demands - from no morefTnancing of EllisAct evictions,to stop evictinghomeowners. Tomorrow, more Occupvactions are planned throughoutthe countrywith a focus on - as activistswill occupyhomes that are being foreclosed,and submitsimilar demands to other banks.As RachelMaddow reported the other !igh!, it was actionslike this in the 1930'sthat persuadedWashington that the statusquo was untenable.This is wherethe Occupymovement is headed,and where it will get results...

The followingletter was deliveredto the Chairmanof WellsFargo on Saturday:

John Stumpf Chairman,President and Chief Executive Officer Wells Fargo Bank 420 Montgomery St. SanFrancisco, CA 94104

Dear Mr. Stumpf:

Wells Fargo Bank (based in San Francisco) is number 23 on the Fortune 500 list, and in 2010 made $93 billion in revenue.

Wells Fargo engages in "predatoryequity" lending, financing large who seek financing from banksand proposalsoutlining their plansto purchaseapariment buildings and displace80% of the existing rent controlledtenants living there and to replace them with tenants paying market rents.

Wells Fargo Bank financed CitiApartments,which used the money to buy I buildings containing 294 . CitiApartmentsthen evicted or forced out over 200 renters in these buildings, and then re-rented those apartmentsat much higher rents.

Wells Fargo Bank is the lender on 226 in San Francisco that are in some stage of foreclosure.That is about 18% of the 1,283homes in San Franciscothat are in some stageof foreclosure.

Nationally, "at the end of 2009, there were 350,169 Wells Fargo homeowners who were eligible for HAMP. As of Feb 2011, only 77,402 got permanent modifications:a 22% rate of modification more than two years into the program. Wells Fargo has cancelled 118,697 trial modificationsand denied 175,336 homeowners from accesslng HAMP. Unlike other national banks, Wells Fargo 'robo-signing' has not changed its foreclosureprocedures despife numerous confirmed reportsof and other illegalitiesin the foreclosureprocess."

Over the last ten years, Wells Fargo paid the lowest worldwidetax rate of the top five big banks (24.8% - $27.5 billion on $110.9 billion, pre-tax earnings)and reportedly did not pay any federal faxes in 2009.

The bank and industry-driveneconomic crash has resulted in the /oss of 9 million jobs and the biggest drop in homeownership since the Great Depression. http.,llquartz.he.net/4eyondch/news/nucleus/plugins/prinlprint.php?itemid:9736 3/28t2012 BeyondChron:San Francisco's Alternative Online Daily News Page2of2

Banks have spent more than any other sector on lobbying between 1998 and 2011, and CitiGroup,JPMorgan, Chase,Bank of America, Goldman Sachs and Wells Fargo were at the top - dropping$12,020,000 between them in 2011 alone.

Therefore,we demand that Wells Fargo Bank:

(1) STOPEVICTING RENIERS. Do not provide any more predatoryequity loans to realesúafe investors who purchase rent-controlled apaftment buildings with business p/ans focused on displacingexisting rentersand replacing them with renterspaying market rents.

(2) NO MORE FINANCINGEtLlS ACT EVICIIONS. Do not make any loans unless the loan recipient agrees not to do any Ellis Act evictions and contractuallyagrees to that provision by making the loan immediatelydue and payable should any such evictionsoccur.

(3) NO MORE EVADTNGCONDO CONVERSTONLAWS. Do not provide any loans for forms of ownership like Tenancies ln Common (TlC's), which are utilized for purposesof circumventingSan Francisco'sCondominium Conversion law.

(4) Do not make any loans for any or unit where tenants have been displaced in the previous 48 months and prior to making any loan on any home or unit we demand you contact the San FranciscoRent Board to determine if any (s)have occurredat the address.

(5) KEEP FAMILIES lN THEIR HOMES: Establish a moratorium on all foreclosures until they establish comprehensivereforms to their loan modification practices,including offering principal reduction; affordable,fixed interesfrafes; and provide proof of ownershipof the loan. We are also calling on Wells Fargo to cease all illegal evictionsof tenantsin foreclosedpropeñies and commit to working with realesfafe companies and seruicerswho follow local and state tenant protection laws.

(6) STOP EV\CT\NG HOMEOWNERS:Any homes or units which have been foreclosed on already, and where the owner currently remains living there, we demand that you offer that homeowner the right to rent their home and continueliving there.

(7) FUND AFFORDABLEHOUSING: Provide the San Francisco Mayor's Office of Housing with interest-free loans,for the purchase and constructionof affordablehousing, in an amount equal to any federal bailout funds we received,pro-rated úoSan Francisco'sshare of those funds.

(8) RESPECT HUMAN R/GHIS: Wells Fargo rnvesfs in and profits from immigrant detention centers,like CCO or GEQ Group, which are pañ of deportingand breaking up immigrant families from San Francisco - one more way big banks profit as we of the 99% are forced out of our homes.

(9) PAY YOUR FAIR SHARE:Wells Fargo needs to stop exploitingloopholes in propeñy tax laws and federaltax sheltersto avoid paying theirfair share of local, stateand federaltaxes.

San Francisco TenantsUnion Causa Ju sta::J u st Cause Housing RightsCommittee of San Francisco Alliance of Californiansfor CommunityEmpowerment (ACCE) Eviction Defense Collaborative Tenants Together AsianLaw Caucus Coalitionon OccupySF

http:llquarfz.he.netl4eyondch/news/nucleus/plugins/prinlprint.php?itemid:9736 3/28/2012