The Katrina Disaster—The Aftermath

1. The Katrina Disaster—The Aftermath Perspectives on Legal Aid Needs in Southeast Louisiana January 2006 Southeast Louisiana Legal Services

2. Southeast Louisiana Demographics Southeast Louisiana Legal Services serves 10 parishes in Southeast Louisiana. 6 of these parishes suffered extensive devastation. The other 4 were also impacted. Total Service Area Population 1.5 million 6 Hardest Hit Parishes 1.2 million

3. Pre-Katrina Client Demographics Southeast Louisiana: Poverty Population 100% Poverty 310,000 125% Poverty 387,000 200% Poverty 600,000 (Estimates based on 2005 food stamp statistics)

4. Impact of Katrina on Southeast Louisiana —A Disaster Unlike Any Other “Everyone lost everything” • 200,000 homes • 207,000 jobs • 350,000 cars (half uninsured) • 300,000 health insurance (statewide) Note: All statistics for Southeast Louisiana unless otherwise noted

5. Maps of Katrina Flooding and Louisiana Diaspora

6. 80% of New Orleans Flooded

11. Katrina-- Impacts on Housing 300,000 families homeless (initially) 200,000 families need government assisted housing No affordable housing left Public/subsidized housing closed indefinitely (only 7% of subsidized housing has re-opened) Can’t get into public housing without custody orders

12. Katrina-- Impacts on Housing Disabled—few housing choices Evictions increase dramatically Flooding disproportionately impacted renters and minority homeowners

14. Katrina—Homeownership Impacts 200,000 homes—extensively damaged or destroyed 110,000 of 180,000 homes in New Orleans alone flooded Many did not have flood and/or homeowner’s insurance Insurance claims for the insured Great uncertainty as to rebuilding options Creditors or lenders taking all insurance proceeds Homeowners can’t afford to maintain 2 homes during rebuilding

15. Katrina—Impacts on Jobs • 207,000 jobs lost in New Orleans area (out of total of 592,000) • Unemployment compensation—overwhelmed system • 40% of all small businesses will fail • Many can’t return to jobs because no housing • 350,000 cars destroyed by flood • Public transit limited (only at 10% capacity)

16. Katrina—Impact on Health • 40% of poor evacuees report chronic condition • 30% report health problems because of Katrina • 300,000 more persons statewide no longer have health insurance • Charity Hospital indigent care lost forever (262,000 patient visits per year)

17. Katrina—Impacts on Health Nursing homes closed Personal care attendants unavailable Stress affecting health—especially the elderly

18. Katrina—Impact on Debt • Pre-Katrina: Health costs caused more than 50% of bankruptcies • Pre-Katrina—2,200 low-income bankruptcies per year in SE Louisiana • Loss of homes, jobs, cars and health care will greatly increase bankruptcies

19. Katrina—Impact on Debt New bankruptcy laws more onerous Much of bankruptcy bar left New Orleans area Child support debt will impact access to bankruptcy relief More debt will hurt long term housing opportunities

20. Katrina—Impacts on Families • Many are split up for economic reasons • Katrina Kidnapping—interstate custody disputes • Many existing custody decrees need modification • Third party custody needs

21. Katrina—Impact on Families • Divorce will increase • Domestic violence will increase by 100% to 500% • Child support problems ● Community property disputes Long-range: Loss of family wealth will impact long-term income security of elderly and those approaching retirement

22. Homeowners Post-Katrina: Multiple legal aid needs • Many clients face multiple legal problems: • One example: Homeowners: • FEMA, SBA or insurance claims • Probate often required to get FEMA or insurance to rebuild • Divorce and mental incapacity complicate access to rebuilding funds • Creditors may seize insurance

23. Homeowners Post-Katrina: • Some may have pre-existing predatory loans • Lost job, need income to save home: unemployment compensation, pension loans, etc. • Rights to health insurance to avoid debt • Problems with foreclosure and temporary landlords • Need bankruptcy to save home

24. Homeowners Post-Katrina • Real estate tax problems • Government actions to take away home • Government regulations for rebuilding • Construction contracts and rip-offs

25. Katrina Impact on Southeast LA Services Staff • 40 of our employees lived in Orleans, Jefferson or St. Bernard Parishes (75% of firm’s total) • Many lost their homes, cars and belongings • 100% displaced for significant time periods • 60% lost their homes • Our Chalmette office was lost

26. Katrina Impact on Staff • Some employees’ spouses lost their jobs • Support staff unable to return New Orleans • 7 of our 30 staff attorneys have resigned since the disaster • Remaining attorneys’ burdens

27. Katrina Impact on Staff • Child care unavailable • Schools unavailable for employees’ children • Commuting distances increased • Housing costs increased (some had mortgages plus cost of replacement housing) • Personal wealth decreased (and many staff are over 40)

28. Projected Client Needs The New York 9/11 experience Problems will be long-term, perhaps 5 years or more Semblance of normality will take 10 years

29. Projected Client Needs First Phase of Disaster Eviction & Landlord-Tenant Advice—Insurance FEMA appeals Unemployment Compensation Katrina Kidnapping Interstate Custody

30. Projected Client Needs Second Phase of Disaster Insurance Mediation Loan Forbearance Consumer Debt Bankruptcy Probate to get FEMA and insurance funds Custody, interstate, relocation, third party Taxes, pensions, denial of health insurance

31. Projected Client Needs Third Phase of Disaster Home repair disputes Predatory lending Government regulations re: rebuilding Tax sales & redemptions Divorce, domestic violence FEMA recoupments

32. Projected Client Needs Other Needs Advice, advice, advice Subsidized and public housing rights Various public benefits Employment Systemic issues related to disaster

33. Post-Katrina Challenges for Indigent Legal Aid • More “new” poor • Pre-Katrina poor dispersed • Difficulty of representing out of state clients • Travel expenses a problem • Post-Katrina, most clients present “multiple” legal problems

34. Post-Katrina Challenges for Indigent Legal Aid • Lost papers, witnesses, etc. • Client local travel more difficult • Fewer staff to handle existing cases • Fewer Louisiana pro bono attorneys to help • New legal issues emerging

35. Pro Bono Work? • Status of Louisiana Limited Practice Rule • Challenge: What can out-of-state attorneys do? • Many cases are emergencies or involve many legal issues

36. Pro Bono Work? What Have Katrina Pro Bono Attorneys Done So Far? Outreach & advice Bankruptcy screening Eviction defense Community legal education materials Advice manuals for Katrina lawyers Mentoring and back-up assistance Oral argument in major public housing appeal in US 5th Circuit Systemic cases on disaster related issues Small business recovery Fundraising for legal aid programs

37. Pro Bono Work? Possible Practice Areas for Out-of State Volunteers Advice & screening—insurance, landlord-tenant, family law are all big issues Mentoring and co-counseling Systemic cases Insurance mediation Community and staff legal education Representation of nonprofits Small business recovery Legislative proposals

38. Pro Bono Work? Areas of Law where you don’t need LA license: Bankruptcy Tax Pension SSI FEMA appeals

39. Pro Bono Work? Things Volunteer Attorneys Can Do in Their Own States: Advice & screening Insurance mediation? Bankruptcies Divorces Child custody—enforcement of LA judgments Child custody—decline jurisdiction Child custody—modification SSI appeals