In the United States Court of Federal Claims

IN THE UNITED STATES COURT OF FEDERAL CLAIMS

______)

HAMILTON SECURITIES ADVISORY )

SERVICES, INC. )

)

Plaintiff, ) CASE NO. 98-169C

) (Judge Horn)

v. )

)

UNITED STATES OF AMERICA, )

)

Defendant. )

______)

DECLARATION OF KATHRYN M. ROCK

I, Kathryn M. Rock, declare under penalty of perjury pursuant to 28 U.S.C. § 1746 as follows:

1.  I am over the age of eighteen and have never been convicted of a felony.

2.  In 1996, I was Comptroller of the Federal Housing Administration (“FHA”) within the United States Department of Housing and Urban Development (“HUD”). I was also designated as the Government Technical Monitor on HUD Contract No. DU100C000018505 (the “18505 Contract”) with Hamilton Securities Advisory Services, Inc. (“Hamilton”).

3.  In late November 1996, Hamilton alerted me to a potential problem with the optimization model relating to the multifamily sales. Chris Greer and I then met with Hamilton staff at which time they gave me more details regarding the nature of the problem, which was described as a potential communication error between the bid package and the bid evaluation model related to bid floors on multifamily sales. I requested that Hamilton collect all of the relevant information and prepare a report for Mr. Nicolas Retsinas and me. During this timeframe Mr. Retsinas was the Commissioner of the FHA and Assistant Secretary of HUD, and Mr. Greer was the HUD Deputy Assistant Secretary for Multifamily Housing Programs.

4.  On December 5, 1996, Hamilton provided me with a preliminary report on the error. Austin Fitts and Carlton Tolbert of Hamilton me with Mr. Retsinas, Mr. Greer and me to brief us on the issues. Hamilton advised us that they would provide us a final report within two weeks.

5.  After our meeting with Hamilton, Mr. Retsinas, Mr. Greer and I had a discussion of appropriate next steps. One of the things we discussed was the need to identify appropriate contractual remedies for the error. We decided that after receiving Hamilton’s final report, we should arrange a meeting to discuss the matter with the General Counsel’s Office at HUD.

6.  On March 17, 1997, Mr. Retsinas and I met with George Weidenfeller, provided him with a copy of the Hamilton final report, and requested advice and counsel on appropriate actions to be taken. Mr. Weidenfeller was at that time the Acting General Counsel of HUD.

I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT.

______

Kathryn M. Rock

DATE: ______

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