Executive Director’s Message
The news headlines say it all: More than 236,000 homes lost in California to foreclosure in 2008 topping the previous nine years combined. Many of LAFLA's clients have worked all of their lives to realize the dream of homeownership, only to watch their life investment disappear. Others face eviction due to the foreclosure of their rental apartments. Unemployment is at 9.3 percent with 164,000 jobs predicted to be lost in 2009. These job losses disproportionately affect African American and Latino populations. The secondary and tertiary consequences are many: lack of food, employment, domestic violence and homelessness. Heeding the words of John Bradway before he opened the Legal Aid Clinic (LAFLA's predecessor) in 1929, "attorneys at LAFLA are helping clients who have "meritorious legal claims but not much money in their pockets." In the wake of the foreclosure crisis, every day LAFLA staff work to prevent and mitigate the effects of foreclosures on clients. These attorneys use their advocacy skills, technology and partnerships to find solutions that will allow their clients to remain in their homes.

They not only seek redress in court, but they work to change policies that make a difference in how clients are treated by lenders and government agencies. They’ve convened working groups, comprised of community-based and legal services organizations and local and state agencies, to share best practices, expertise and strategies for addressing the housing crisis and its impact on poor communities. They do all of this with your help: our pro bono partners, donors, funders and community partners who give so generously of their time and money to advance the cause of equal access to justice. I know the challenges are great and will most likely increase this year and the following, but working together we can continue to give life to the words of "equal protection under the law."

Silvia Argueta, Interim Executive Director

articles

Consumer Unit Begins Litigation Work in Home Foreclosure Cases
By Ana Storey, Managing Attorney, Consumer & Family Law Units
Since the last quarter of 2007, LAFLA’s Consumer Law Unit has become a driving force in getting Los Angeles-area homeowners the assistance needed to refinance or restructure their home loan debt. Our attorneys play a central role in working with local groups to coordinate non-profit loan counselors, city and state officials, and other legal services organizations to address chronic problems. Although voluntary loan modification programs like Hope for Homeowners were created by the Federal government last summer, many clients will lose their homes despite every effort to work with lenders. As a result, predatory loan-modification scams are on the rise as homeowners seek alternative solutions.

When these efforts fail, attorneys in our Consumer Law Unit file affirmative lawsuits to overcome the resistance of investors and servicers, and bring about the specific changes needed. In 2008, the Unit averaged more than one filing per month and expects a similar, if not greater, number of filings in 2009. In addition to community cooperation and litigation, we also organize both formal and informal trainings for loan counselors, attorneys, and other advocates who deal first hand with the increasing numbers of foreclosures.

The primary challenges lie in the resistance of investors to apply dramatic changes in loan terms, the legal protection for loan servicers which reinforces the investors’ position, and the lack of financial resources to overcome that resistance. In order to stabilize housing values and prevent the projected tsunami of foreclosures in 2009 and 2010, homeowners need dramatic reductions in loan principal.

As a frontline law firm, we’ve seen that many homeowners trusted their brokers and banks to structure their loan agreements and counted on these experienced individuals to guide them through the process. In addition, a substantial number of homeowners were targeted by predatory lenders and brokers who identified low-income and elderly clients with substantial equity in their homes. Essentially, they were victimized by those in positions of trust.

Legal aid and other housing and community organizations nationwide have developed several solutions to help homeowners remain in their homes and provide a win-win solution for lenders. These solutions include the following: Federal buyout of troubled mortgage debt followed by meaningful loan modifications; allow and add incentives for mortgage principal reductions; and fund “silent” second loans to ensure affordability.

However, these ideas have yet to be implemented. Until these or other solutions are developed, the efforts of our Unit are the best chance to limit instability in our troubled neighborhoods. After all, home foreclosures affect the health and well being of entire communities. Empty homes lead to increased crime, gang and drug activity. As values decrease, these communities which were once involved in the revitalization process lose their tax base. The loss in tax dollars is felt in our schools, our roads, and in our library, police, and fire services. Until such time as our national and local leaders make the necessary changes to halt the foreclosure crisis, organizations like LAFLA will be there to serve as the last line of defense for distressed communities in need of relief.

Housing Unit Wins Postal Delivery Case
On September 23, 2008, the United States Postal Service (USPS) abruptly suspended door-to-door mail delivery to the hundreds of residents at Mar Vista Gardens, a 62 building, 601 unit public housing complex run by the Housing Authority of Los Angeles (HACLA). According to the USPS, the suspension of door-to-door mail delivery was prompted by a fatal shooting that occurred at the complex. After more than a month without regular mail service, frustrated residents contacted LAFLA’s Housing Unit for help. Attorney Fernando Gaytan quickly met with the resident leaders and set out to help restore door-to-door mail service to the complex.

Gaytan carefully reviewed resident complaints concerning their interactions with the USPS in the preceding months, monitored mail delivery that was temporarily done via a mail truck parked at the front of the complex, conducted legal research on the relevant issues pertaining to mail service and advised residents of their rights. He also met with representatives from the Office of Congresswoman Maxine Waters, City Councilmember Bill Rosendahl, HACLA and the Mar Vista Residents’ Council to develop a strategy on how to best resolve the problems facing the residents.

Every effort was made to prevent the USPS plan to install centralized boxes in front of the complex instead of door-to-door service—a plan that would have significantly burdened the roughly 20 percent of residents who are physically challenged and who would find it difficult to retrieve their mail in this manner. Due to pressure on the USPS by Congresswoman Waters and others, postal officials agreed to allow any mail carrier in the area willing to work at Mar Vista Gardens to bid on the route instead of installing the centralized boxes. On December 20, 2008 regular mail service was finally restored to the residents of Mar Vista Gardens.

LAFLA Places Humanitarian Parole Cases with Kirkland & Ellis, Paul Hastings, Janofsky & Walker
According to a New York Times article, "the story of immigrants coming to the United States has always been filled with heartbreak: asylum seekers facing torture at home; quotas excluding the deserving; the sick seeking care they will never find. ''Humanitarian Parole'' holds out another option, the possibility of case-by-case compassion at the discretion of the secretary of the Department of Homeland Security, a chance to come when other measures fail or take an entire childhood to yield results."

When an asylee or refugee is admitted to the U.S., it is often at the price of separation from their children, parents, siblings and other close family members. Attorneys in LAFLA's Immigration Unit help survivors reunite with their family members using derivative asylum and refugee policies. Unfortunately, immigration laws provide strict classifications of which family members are eligible for derivative status. Those strict classifications don’t always mesh very nicely with how the lives of our clients are intertwined with other close family members. For example, there is no provision to allow a refugee or asylee to bring his siblings; and there is no provision to allow a grandmother to bring her grandchild—even though the law allows the parent of the grandchild to immigrate. For such cases, Humanitarian Parole remains the only realistic option to reunite family members. But it is not easy—requesting Humanitarian Parole is a very time intensive process with only a one in four chance of success.

The process often requires obtaining medical, birth, marriage and other government documents from unstable countries such as the Sudan and Uganda. Very few organizations in the United States undertake this arduous process and LAFLA did not have the resources to help. Immigration Attorney Sheila Neville and Legal Advocate Carolina Sheinfeld of our Immigration Unit approached Pro Bono Director Tai Glenn about placing these cases with outside law firms. Glenn called our "Access to Justice Partners" and the response was overwhelming. Within hours several cases were placed with law firms Kirkland & Ellis LLP and Paul Hastings, Janofsky & Walker LLP, who are tackling the quagmire of foreign government documents and the tangled administrative process of the Department of Homeland Security in hopes of reuniting these families.

The Cases
James Gilliam, Melanie Full and Jamie Broder at Paul Hastings are working to help our client bring her 7-year-old daughter "Aladia" who is at risk for female genital mutilation, while Alex Pilmer, Alice Yuan and Tyler Tassin at Kirkland & Ellis are helping three of our clients bring their children and siblings from Kenya, the Sudan and Uganda which they fled to escape torture and other human rights violations.

LAFLA thanks these trail blazing firms for their generous support, when many attorneys would have shied away from these cases. With their assistance, and hopefully the involvement of others, LAFLA can make this type legal representation available to a greater number of immigration clients.

LAFLA Filed Amicus Brief Challenging Prop 8
LAFLA joined other public interest organizations in submission of an amicus brief filed on January 15 in the California Supreme Court in the matter of Strauss v. Horton. This case challenges the constitutionality of Proposition 8, arguing that fundamental rights of minorities, including the right of gay and lesbian residents to marry, cannot be canceled through the process of majority vote in an initiative. The brief states LAFLA's interest in the matter as follows:

The Legal Aid Foundation of Los Angeles (LAFLA) is California's oldest and largest legal services organization, providing free legal assistance in a range of matters, including family law, to indigent clients for 80 years. Driven by a mission explicitly committed to combating discrimination, LAFLA advocates for equal protection under the laws for all California residents.

“All people are entitled to equal treatment under the law and Proposition 8 violates this basic constitutional guarantee,” said Silvia Argueta, Interim Executive Director. “LAFLA is committed to defending the rights of our many clients, community members and staff who have been stripped by Proposition 8. We believe that discrimination and poverty are linked, and must be fought together on all fronts.”

The California Supreme Court has scheduled oral arguments in the Prop 8 case for March 5, and a decision is expected within 90 days afterward.

New Bank on California
Program Opens Bank Accounts
By LAFLA’s Banking Finance Industry (BFI) Working Group
On December 12, 2008 Governor Schwarzenegger announced “Bank on California,” a program to help 25 percent of Californians, primarily African Americans and Latinos without bank accounts open starter accounts that provide access to free checking accounts and low-cost credit. Los Angeles is one of three areas in the U.S. with the highest percentage of residents without bank accounts, and in Los Angeles the program is expected to launch as “Bank on L.A.” within the next month or two. The average person without a bank account spends five percent of his/her annual income at check cashing facilities. A starter checking account will save individuals at least $800 per year, or about $40,000 over a lifetime. The BFI group met with Emerging Markets, a consulting group working with the United Way to manage the campaign which will target four L.A. neighborhoods, three of which are in LAFLA's service area. LAFLA has expressed an interest in participating in the campaign to ensure that the needs of our clients are met.

The goal of the program is 100,000 starter accounts by the end of 2010 in order to provide more Californians with access to free checking accounts and low-cost credit sources. So far San Jose, Sacramento, Oakland, Fresno, Los Angeles, Fresno and San Francisco, and over 32 banks and credit unions have decided to participate in the program. San Francisco currently operates the program as “Bank on San Francisco,” which already has 16,000 accounts. All that’s needed to open a starter account is a valid ID. Valid IDs include California driver’s licenses and IDs, Mexican Matricula cards, military IDs, passports, and permanent resident cards,

Heading up the participating banks is Bank of America, which has agreed to offer starter accounts in all its California branches. Other participating banks include Bank of the West, Citibank, Union Bank of California, Wachovia, Washington Mutual and Wells Fargo.

Free Pro Bono Seminar to be
Held at Santa Monica Courthouse
LAFLA and the Consumer Protection Unit of the Santa Monica City Attorney's Office are co-sponsoring a seminar on pro bono issues on February 26, 2009 from 9 a.m.-12:30 p.m. Registration begins at 8:30 a.m. at the Santa Monica Main Library, 601 Santa Monica Boulevard. The partnership is part of the City's and LAFLA's efforts to promote pro bono work and to encourage attorneys to participate in order to meet the growing demand for services. Workshop presenters will discuss pro bono opportunities and benefits and the ethical considerations of pro bono work. Speakers will include Tai Glenn, LAFLA’s Pro Bono Director; the Honorable Gerald Rosenberg, the presiding judge at the Santa Monica Court; Adam Radinsky, Deputy City Attorney; Denise McGranahan, LAFLA Senior attorney, Toby Rothschild, LAFLA’s General Counsel and Valerie Vanaman of Newman Aaronson & Vanaman. Attendees will receive 3.25 hours MCLE credit, including 1 hour ethics.

Registration deadline is February, 19, 2009. For more information and to register, please visit www.smconsumer.org.

In the News

• LAFLA was invited to participate in a press conference held by Mayor Villaraigosa on the steps of City Hall on Jan. 26. The Mayor’s office was responding to a growing number of foreclosure-related loan modification scams that have surfaced. Although other organizations have been telling homeowners to avoid such scams, the Mayor wanted to support this effort and to alert residents to the free available resources available in their communities; and to inform them that their first step should always be to contact their financial institutions, and/or a HUD-certified counseling agency. Dorothy Herrera Settlage, an attorney in our Consumer Unit, spoke on behalf of LAFLA and other legal aid agencies. She was also interviewed by KCBS2/KCAL 9, KVEA 52 and KMEX 34 as well as LA 35, the City’s Cable Channel.
• Denise McGranahan, a Senior Attorney at LAFLA’s Santa Monica Office was interviewed about an ongoing housing case with the City and The Plaza at the Arboretum, an apartment complex. The article ran in the Jan. 28 issue of the Santa Monica Daily Press.