The Katrina Disaster—The Aftermath

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The Katrina DisasterThe Aftermath

• Perspectives on Legal Aid Needs in Southeast
  Louisiana
• January 2006
• Southeast Louisiana Legal Services

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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

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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)

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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

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Maps of Katrina Flooding and Louisiana Diaspora
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80 of New Orleans Flooded
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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)
• Cant get into public housing without custody
  orders

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Katrina-- Impacts on Housing

• Disabledfew housing choices
• Evictions increase dramatically
• Flooding disproportionately impacted renters and
  minority homeowners

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KatrinaHomeownership Impacts

• 200,000 homesextensively damaged or destroyed
• 110,000 of 180,000 homes in New Orleans alone
  flooded
• Many did not have flood and/or homeowners
  insurance
• Insurance claims for the insured
• Great uncertainty as to rebuilding options
• Creditors or lenders taking all insurance
  proceeds
• Homeowners cant afford to maintain 2 homes
  during rebuilding

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KatrinaImpacts on Jobs

• 207,000 jobs lost in New Orleans area (out of
  total of 592,000)
• Unemployment compensationoverwhelmed system
• 40 of all small businesses will fail
• Many cant return to jobs because no housing
• 350,000 cars destroyed by flood
• Public transit limited (only at 10 capacity)

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KatrinaImpact 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)

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KatrinaImpacts on Health

• Nursing homes closed
• Personal care attendants unavailable
• Stress affecting healthespecially the elderly

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KatrinaImpact on Debt

• Pre-Katrina Health costs caused more than 50
  of bankruptcies
• Pre-Katrina2,200 low-income bankruptcies per
  year in SE Louisiana
• Loss of homes, jobs, cars and health care
• will greatly increase bankruptcies

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KatrinaImpact 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

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KatrinaImpacts on Families

• Many are split up for economic reasons
• Katrina Kidnappinginterstate custody disputes
• Many existing custody decrees need modification
• Third party custody needs

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KatrinaImpact 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

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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

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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

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Homeowners Post-Katrina

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

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Katrina Impact on Southeast LA Services Staff

• 40 of our employees lived in Orleans, Jefferson
  or St. Bernard Parishes (75 of firms total)
• Many lost their homes, cars and belongings
• 100 displaced for significant time periods
• 60 lost their homes
• Our Chalmette office was lost

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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

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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)

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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

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Projected Client Needs

• First Phase of Disaster
• Eviction Landlord-Tenant
• AdviceInsurance
• FEMA appeals
• Unemployment Compensation
• Katrina Kidnapping
• Interstate Custody

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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

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Projected Client Needs

• Third Phase of Disaster
• Home repair disputes
• Predatory lending
• Government regulations re rebuilding
• Tax sales redemptions
• Divorce, domestic violence
• FEMA recoupments

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Projected Client Needs

• Other Needs
• Advice, advice, advice
• Subsidized and public housing rights
• Various public benefits
• Employment
• Systemic issues related to disaster

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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

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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

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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

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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

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Pro Bono Work?

• Possible Practice Areas for Out-of State
  Volunteers
• Advice screeninginsurance, 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

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Pro Bono Work?

• Areas of Law where you dont need LA license
• Bankruptcy
• Tax
• Pension
• SSI
• FEMA appeals

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Pro Bono Work?

• Things Volunteer Attorneys Can Do in Their Own
  States
• Advice screening
• Insurance mediation?
• Bankruptcies
• Divorces
• Child custodyenforcement of LA judgments
• Child custodydecline jurisdiction
• Child custodymodification
• SSI appeals