ALBANO PRESSES BANK ON 'DRUG DEN'

SPRINGFIELD -- Mayor Michael J. Albano said he will ask the U.S. Senate
Committee on Banking to demand that Ocwen Federal Bank of Florida appear
before the committee and explain why it has allowed a property in
Springfield to become blighted and drug-ridden.

"This is a perfect example of urban decay and how it's killing a
neighborhood, and how a bank is a part of it," Albano said yesterday of
property at 36-44 High St. The banks hold a $175,000 mortgage on the property.

There were more than 150 drug arrests at the property in 1998.

The owner of record is Joseph F. Kulig of Chicopee and Four Seasons Realty
and Investment of Springfield. Kulig filed for bankruptcy, and Judge
William H. Abrashkin appointed Virgilio Property Management in Holyoke as a
receiver to replace Kulig.

Kulig said he has nothing to do with the property, and is waiting for the
bank to foreclose.

Albano said he plans to ask U.S. Sen. John F. Kerry, D-Massachusetts, who
sits on the Senate Banking Committee, to force the bank to take
responsibility for the High Street property or sell it.

Kerry is expected to be in Springfield Feb. 28, and Albano said he planned
to invite the senator at that time to tour the property.

John H. Ackermann, commercial assets manager for the West Palm Beach, Fla.
bank, declined to comment on the property or Albano's comments.

However, in a letter to Albano in June, Ackermann said Ocwen is marketing
the property.

He said Ocwen recognizes the city's concerns about the neighborhood, but
"as a mortgagee, there is very little Ocwen can do that might respond to
these concerns."

Ackermann said Ocwen as a mortgage holder cannot assume control of the
property "without potentially incurring significant liability."

"That says it all," Albano said of the bank's attitude.

Ackermann said in his letter to Albano that Ocwen has invested in
low-income housing nationwide and has provided hundreds of thousands of
dollars to local housing authorities and first time homebuyers in New
Jersey, where the home office of the bank is located.

Albano said the property "has served as a drug den in the past and cost the
taxpayers of Springfield thousands of dollars for 24-hour police coverage."

"You can't put a price tag on what a problem property like that costs a
neighborhood and a city."

He said no other property in Springfield to his knowledge has had 550
police calls in one year.

In addition to the high number of 911 calls for police to come to the
66-unit apartment building, the property was cited for 214 housing code
violations between Jan. 26 and May 26, 1999.

Albano said that while court appointment of a receiver to manage the
property has given relief from a crisis situation, "numerous problems still
exist."

Only 10 of the 66 units are occupied. Albano said the receiver has had to
borrow thousands of dollars to maintain the property, and those
expenditures will be liens. In addition, he said the police, fire, legal
and housing departments have spent thousand of dollars dealing with
problems at the site. More than $70,000 in taxes is owed.

Albano said the property is not worth the $715,000 mortgage the bank holds.
The city has offered to pay 10 percent of that for the building, but the
bank turned down the offer.

Albano said the bank has a poor record for reinvestment in urban communities.