After the cutscene in which Passos meets up with Max in the wreckage of the water tower, follow your parter around the corner and hop up onto the next rooftop. Run through the carcass of the water tower into the building ahead, and dive out in Bullet Time. There will be three enemies hiding around the log segment of wooden planks. Hit as many as you can before retreating to cover on the left side of the blown-out wall. Pop out to kill all of the enemies, more of whom will be hanging around in the hole to the right.
When all of the enemies are dead, pop out from cover and pass through one of the two large holes in the wall, collecting ammo as needed. Proceed through the small doorway and up the stairs to the right. En ter Bullet Time when you reach the top of the stairs and sprint to cover behind the pile of wooden planks, as a large group of the gangsters will await you in this room. You will have to be careful in this section, as it is actually possible for Passos to die if you don't deal with the enemy threat in this room quickly enough. He will simply take one bullet too many and this will result in you receiving a Game Over screen. If you're having trouble getting a bead on the enemies, remember that you can enter Bullet Time just as an enemy pops out to shoot you in order to get a better shot at their head. Alternately, you can also dive out in Bullet Time if you need to get to a new vantage point quickly.
When all of the enemies are dead, head to the front of the room for a cutscene. Max and Passos will begin to run down the fire escape, climbing over the roof of the building next door. Passos will toss a cinder block through the window on the rooftop, and you will both climb down into a chop shop below. You will have to watch all three directions for enemies, as there will be entrances directly ahead of you, to your left and ahead of you, and to your right and ahead of you. Take cover behind the blue box and wait for the enemies to funnel in through the various doors, and shoot the cars and various parts out by the door to cause explosions when they get caught in the doorways.
When the game enters slow motion for a cinematic final kill, you will know that it is safe to leave the area and head outside. Run up to the wooden door and run through as Passos opens it. Quickly take cover behind the concrete barrier next to the barrels and enter Bullet Time to pop out and shoot the enemies directly ahead, next to and behind the dumpster. In this scenario, just as in the apartment earlier, Passos can actually die if you are not there with him, so be sure to stay close. That said, you should be careful when fighting these enemies, as there will be a lot of them here. Use Bullet Time liberally.
When all of the enemies are dead, another cutscene will trigger. Max and Passos will climb the fence and finally find a moment of respite. With nowhere to go and nothing left for him in New Jersey, Max will finally accept Passos' offer and go with him to Queens.