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  The American Civil Liberties Union had sued the Baltimore Housing Authority and the U.S. Department of Housing and Urban Development in 1995, arguing that government policies had created ``black ghettos'' in Baltimore.

The judge concluded that the plaintiffs did not prove current discrimination on the part of city officials, or a failure by city officials to right past wrongs.

But he said HUD failed to do its duty to promote fair housing and failed to look for solutions beyond the city limits. Garbis said it remains to be seen whether HUD's actions were intentionally discriminatory or a result of political pressure.

He said the next step is to hear evidence on developing a regional approach to desegregating public housing.

Plaintiffs' attorney Andrew Freeman said he was ``pleased that the judge recognizes that segregation is a regional problem that needs a regional solution.''

HUD attorneys referred requests for comment to the U.S. Justice Department. Justice spokesman Charles Miller said the department had no comment.

The judge did not explain exactly what a regional approach would entail. But Freeman said ``nobody is talking about building high-rises in the county.'' In many cases, existing buildings can be used, he said.

While a consent decree in the case covers 14,000 families, Freeman said not all would move.

``Relative to the population of the region, we are talking about grains of sand on the beach,'' Freeman said.

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