LEGAL SERVICES OF EASTERN MICHIGAN

Transcription

1 LEGAL SERVICES OF EASTERN MICHIGAN 2008 ANNUAL REPORT

2 From the Desk of the Executive Director Over the past few months what were bad economic times have become catastrophic. The numbers of people whose jobs are gone, face foreclosure, confront severe family problems, and are tackling other challenges have increased exponentially. The number of people in Michigan who are living in poverty grows daily. Not-for-profit agencies, such as Legal Services of Eastern Michigan (LSEM), which provide support services for the poor are facing a greater demand for service at a time when the agencies too are facing financial shortfalls. In spite of these troubled times, LSEM has been fortunate to have funders who recognize that consumer needs arising out of poor economic times must be met, and have provided new funding to do so. In 2008 LSEM was awarded three new grants to hire additional staff and expand services. These new services are available to anyone without having to meet financial eligibility requirements. First, LSEM received a United Way of Genesee County grant to hire a bankruptcy attorney to provide free legal assistance to help secure clients financial resources. Assistance in filing Chapter 13 bankruptcies is being given to the working poor as a way to set up financially manageable repayment plans to avert foreclosure. Legal help is also provided, as needed, in filing Chapter 7 bankruptcies, so allowable debts can be forgiven. The bankruptcy attorney also assists with consumer and other foreclosure issues that interface with the bankruptcy program. Second, in 2008 a statewide partnership among legal service providers was established to help address foreclosures. The effort, funded by the Michigan State Bar Foundation and the Ford Foundation, started in January The attorney hired for this program is housed in LSEM s Saginaw office, and primarily serves the northern counties in LSEM s service area Saginaw, Bay, Arenac, Midland, Gladwin, Gratiot, Clare and Isabella Counties. The Foreclosure Specialist will screen all clients for potential foreclosure issues, and address those problems as identified. The advocate will also offer community legal education and outreach. The goal of this combined effort is to curb loss of homes thus impacting foreclosure throughout the state. Third, the Department of Justice awarded LSEM a Violence Against Women Act Grant to provide free civil legal representation for domestic violence survivors. This program is a partnership between LSEM and four domestic violence shelters and will cover six counties (Genesee, Lapeer, Bay, Arenac, Midland and Gladwin). The grant allowed LSEM to hire two new attorneys and one paralegal to deliver these added services as well as providing funding for participating shelters to add personnel to help meet survivors needs. Legal Services of Eastern Michigan is indebted to funders that understand the growing needs of the poor and have helped LSEM expand legal services during this time of economic stress. Edward J. Hoort Executive Director

3 Legal Services of Eastern Michigan An Agency Profile Legal Services of Eastern Michigan (LSEM) is a non-profit law firm that offers free civil legal assistance to low-income people. Its mission is to use legal skills to address the causes and effects of poverty. Special emphasis is placed on those issues that affect survival needs of lowincome people. In addition to addressing individual legal needs, LSEM engages in impact work that provides systemic change that positively affects the poverty community as a whole. LSEM has been providing these services since 1951, and now serves clients in 14 Mid-Michigan counties, Arenac, Bay, Clare, Genesee, Gladwin, Gratiot, Huron, Isabella, Lapeer, Midland, Saginaw, Sanilac, St. Clair, and Tuscola. LSEM offers service from four offices, one in Flint, which also serves as the administrative office, one in Saginaw, one in Midland, and one in Port Huron. LSEM also provides home visits to the frail and disabled including nursing home visits. Specialties in Which Individual Legal Services Are Offered The majority of the individual legal assistance LSEM delivers is for people who live at 125% of poverty level or below. However, the financial eligibility threshold may be higher depending on certain funders eligibility criteria; in some cases, funders impose no financial eligibility rules. Housing includes landlord/tenant problems, lock-outs, public housing issues, mortgage foreclosures, property tax forfeitures, land contract forfeitures, and predatory lending. In addition, LSEM handles issues that affect the habitability of housing, i.e. problems with public utilities. Fair Housing includes fair housing testing and enforcement to ensure that all citizens have the rights guaranteed under federal and state law to have equal access to housing regardless of race, sex, age, color, religion, national origin, familial, marital, or disability status. There is no financial eligibility requirement to receive fair housing assistance. Family includes divorces, custody/parenting time, child support, paternity, name changes, guardianships, and other family issues as well as senior law and elder abuse including financial exploitation. Though LSEM has always included domestic violence issues in its practice of family law, receipt of the Violence Against Women s Act grant received in late 2008 allows expansion of these services to include representation of domestic violence survivors in civil legal matters including help in securing contested personal protection orders. Senior law services and those funded through VAWA have no financial eligibility requirements. Income Maintenance includes issues relating to helping eligible individuals attain financial assistance. Examples of such help includes: Temporary Assistance to Needy Families (TANF),

4 Food Stamps, Social Security, Supplemental Security Income (SSI), Veteran s benefits, Worker s Compensation, and other income maintenance issues. Health includes assistance in securing government health care benefits such as Medicare and Medicaid etc. Credit Repair/Bankruptcy includes unfair sales practices, contracts, credit repair, collections, mortgage foreclosure assistance, and how bankruptcy can be used as a tool to deal with credit issues that could lead to homelessness, including saving homes from foreclosure. In this specialty no financial criteria apply. Low-Income Tax Clinics & Tax Controversies includes community legal education regarding taxpayer rights and responsibilities, entitlement to tax credits such as Earned Income Tax Credit, and help in filing for Individual Taxpayer Identification Numbers. LSEM also offers consultation, referral, and possible representation with tax controversies of $50,000 or less. Education includes advice and brief service in issues such as rights to IEPC s and XXXX. If these issues are complex and require further legal assistance, they are normally referred. In this way LSEM can meet clients basic needs and still help them acquire access to added services, if needed. Employment includes job discrimination, wage claims, unemployment compensation, and other employment issues. Individual Rights includes durable power of attorney paperwork, mental health issues, disability rights, prisoners rights, immigration/naturalization, and other individual rights. Miscellaneous includes issues related to juvenile issues, licenses/auto torts, incorporation or dissolution of non-profit organizations, Indian/tribal law, and advance directives, and wills. Case Examples Custody Changed Making Abused Child Safe A woman who was not the custodial parent was visited by her minor son. The boy s father, who lived out of state, had custody. While visiting, the boy told his mother that he was being abused, and that he did not want to go back to live with his father. The woman came to LSEM for help. The family law attorney drafted an Ex Parte Order that would allow the mother

5 to have temporary custody of her son until the situation could be permanently resolved. The Judge immediately signed the Order, and the boy was able to stay with his mother on an interim basis. Since Judges are often reluctant to sign such orders, it was a significant achievement that the mother could not have accomplished without help. After the Order was in place the custody issue was reopened. The mother applied for and received permanent custody of her son. The boy is now safe, and he and his mother are reunited. Woman s Eviction Set Aside A 28 year-old woman received a Section 8 Housing Voucher through Saginaw s Community Mental Health Shelter + Care program. The woman signed a one-year lease for her apartment and the apartment complex entered into a contract with the Shelter + Care Program for the woman s rent to be handled through the Housing Assistance Payment Program, which means the woman s rent would be paid by a third party acting on her behalf. Even though the landlord committed to this payment program, he later filed eviction papers for non-payment of rent in the amount of $314, and wanted an alternate payment system to what he had agreed. Frightened of losing her home and her Section 8 Voucher, the woman came to LSEM for help. She provided the LSEM advocate with paperwork proving that since her rent had been paid through a vendor she owed nothing. The letter she had received from her landlord was conflicting, and contained a confusing provision regarding the changes he wanted in the way in which the woman s rent was to be paid. The case could not be settled through negotiation and went to court where the Judge agreed that the landlord s provisions for changing arrangements for rental payments were confusing and that his claims were invalid. The Judge dismissed the notice of eviction. The woman retained both her voucher and her apartment, and homelessness was averted. Home Restored to Rightful Owner A man owned two homes, one was his residence and the other was income property. The man was imprisoned and executed a power of attorney to his sister to take care of his properties while he was incarcerated. On leaving prison, the man discovered that his sister had betrayed him and sold both of his properties to a third party and spent all of the money from the sales. The man came to LSEM for assistance, and the Housing Attorney was able to recover the residential home plus money damages from the third party since he should have known that the transaction was improper. Although the client lost his rental property, he regained his residence in which he

6 still lives. Having his residence restored was an important part of helping the man rebuild his life after being released from prison. Pro Bono Attorney Saves Home In 2003 a couple in their late 50 s approached LSEM for help because they were facing foreclosure. The case was referred internally to LSEM s housing unit, which screened the clients situation and recommended that the couple file a Chapter 13 bankruptcy to stop a foreclosure sale from occurring. The wife was employed and was able to make the house payment, but could not make up the arrearage. There were also other debts such as some large medical bills. The husband suffered ill health, including both physical and psychological problems which made him unable to work. He therefore applied for disability benefits. Since LSEM did not, at the time, have funding to provide bankruptcy services in Saginaw County, the case was referred to a pro bono attorney, who filed an emergency Chapter 13 petition for the couple. The plan established through the bankruptcy proceedings provided a way for the couple to make payments as well as address the arrearage. The pro bono attorney monitored the couple s case throughout the successful five year plan, and their home, the couple s major asset saved, was saved from foreclosure. Senior Saved from Financial Exploitation LSEM worked with other entities to ensure that a senior woman was not financially exploited. LSEM s Paralegal was initially contacted by a woman living at a nursing home who needed help with revocation of a Durable Power of Attorney. The Paralegal scheduled an appointment to visit the client at the nursing home. Visits to both nursing homes and clients homes are common strategies LSEM uses to ensure that the frail and disabled have the same accessibility to service as other clients. The Paralegal did not resolve this woman s issues alone. Instead she worked as part of a team that included the Genesee County Sheriff s Department Elder Abuse and Exploitation Prevention Unit and a bank representative. Together they safeguarded the senior from exploitation. As the team of advocates talked to the client she told them that the person she had named as her Patient Advocate was behind the attempts to exploit her. So it became clear that the client needed to sign not only a revocation for her Durable Power of Attorney, but also her Medical Power of Attorney. To prevent the woman from becoming prey to exploitation, the LSEM Paralegal went back to her office and drew up the needed paperwork to revoke both powers of attorney and took them to the woman for signature the same day. This example illustrates some of the unique issues seniors face and how a team of human service agencies working together can utilize the expertise of each member agency to jointly and positively impact these problems in a timely manner.

7 Estate Dispute Settled by Pro Bono Attorney A woman contacted LSEM for help in settling her father s estate. Though the woman was her father s sole heir, he had died without a will so there was a dispute over the settlement. Before her father died he had been receiving payments from an asbestos settlement. In order for the daughter to receive the remainder of the asbestos settlement a probate hearing was required. Since LSEM does not handle this type of case, it was referred to LSEM s pro bono panel. The Pro Bono Attorney represented the woman in court, and she received a lump sum settlement of $3,000 for her father s asbestos claim. The settlement was particularly important for this client, because her sole source of income was from Social Security Disability. This is an example of how LSEM can expand its services at very little cost, so that clients who would ordinarily not be served can secure legal assistance. Disability Entitles Tenant to Special Accommodations A woman and her daughter live in a subsidized housing complex. Both suffer from different disabilities; the woman has a mental health condition involving anxiety issues and her daughter is autistic. The woman s therapist prescribed a cat to help her cope with her anxiety. The apartment manager was made aware of the situation and given medical notification that a cat was considered a necessary assistive device for the disabled woman. The woman was allowed to have the animal with no pet deposit or monthly pet fee. Later, based on the recommendation of her daughter s therapist, the woman got her daughter a dog. However, she did not notify the manager in advance. Once the manager learned that the woman had two animals in her home, he issued charges for a pet deposit and monthly pet fee for the dog. Despite the woman s explanation that the dog was bought due to a therapist s recommendation, the manager refused to waive the fees. The manager contended that since the family already had one emotional support animal, it was not entitled to have another pet classified as an assistive device. He then applied the usual fees for pets. The woman sought help from the Fair Housing Center. The Fair Housing Attorney argued that since the woman and her daughter suffered from different disabilities the treatments they needed would also vary. The Attorney convinced the apartment manager that the woman and her daughter were each entitled to have a pet as an assistive device, which meant no fees could be charged. Through the Center s work the rights to reasonable accommodation to which the disabled are entitled under Federal law was achieved.

8 Disabled Client Gets Settlement of Child Support Arrearage A disabled man came to LSEM with his mother to seek help in securing a divorce and settling a large child support arrearage. The man s physical disabilities necessitated his mother s help in resolving his problems, including his legal issues. The client had accrued a support arrearage in the amount of $30,000, but his only income was $623 a month in Social Security. Though the client s son had reached majority, he still owed support from when the boy was a minor. Since the man was disabled, the child would have been eligible to draw benefits based on his father s disability, and such benefits would have offset any child support owed. However, the client had not been officially declared disabled when his son was born, so he was liable for back support from the time of his son s birth until he was granted disability-based benefits. Once the man started receiving disability his wife, the child s custodial parent, failed to file the necessary paperwork for their son to draw benefits on his father s claim. As a result, the man continued to be assessed child support, and his arrearage began to accumulate; it grew further still as penalties and fines were added until an insurmountable debt had accrued. The LSEM Attorneys assigned to the case were able to negotiate a settlement. They were successful in immediately getting the child support reduced to $15,000, and a payment plan established toward payment of the remainder. Under the plan the client is expected to pay $40 per month for a two year period. If he follows through, the total amount paid will be accepted as payment in full, and any arrearage remaining at the end of the two year period will be forgiven. Also, through the pro se divorce clinic, the man received assistance in securing a divorce from his son s mother. The Advocates who handled the case received a thank you note from the client and his mother who expressed their gratitude for the legal work they provided and the compassion they showed. Woman Awarded Benefits After Two Years Wait A 26 year old woman came to LSEM for assistance in She had applied for State Disability Assistance (SDA) and Medicaid after multiple admissions to a psychiatric hospital within an eight month period. Without financial assistance or medical insurance the woman was homeless, and forced to move between homes of various relatives in Midland and Gladwin Counties. In an attempt to secure these benefits for her an LSEM Attorney represented the woman at a hearing. However, the Judge denied her claim on the contention that each time she was released from a mental institution she was deemed cured, which interrupted the 12-month duration of disability requirement, which made her ineligible for benefits. LSEM appealed the

9 decision in Circuit Court, and the Judge immediately overturned the denial for eligibility for SDA, because the duration of disability requirement that should have been applied is 90 days not 12 months. He held over for review the woman s Medicaid claim. On review the woman s Medicaid claim was also awarded, because the Judge considered that her illness did meet the 12 month eligibility requirement. The woman did not have the ability to navigate the process of securing benefits alone, and without LSEM assistance she would have continued to be at risk. Couple Impoverished by Medical Problems Gets Help A public benefits Paralegal helped a couple who both had serious medical issues. The man had just had open heart surgery and his wife suffered from a very aggressive form of breast cancer; both were hospitalized. The couple unsuccessfully filed for Medicare and Food Stamps about a month prior to LSEM s involvement with the case. The husband tried to follow-up, but all his calls to his Department of Human Services (DHS) Caseworker went unanswered. A call to a State Senator s office for help, while not getting results, clarified DHS s reason for failing to grant benefits. DHS told the State Senator s office that the couple had neglected to check the cash assistance box on their original application so a new application would have to be filed. At this point the Hospital Social Worker who was trying to help the couple referred them to LSEM. The husband signed the intake form and retainer, and the LSEM Paralegal called the DHS Section Supervisor. The Paralegal told the Section Supervisor that it was her understanding that since the application was still less than 30 days old the clients should be able to update it rather than starting over. The Supervisor agreed with the Paralegal s interpretation of DHS policy. When the Paralegal asked for the right to come and update the application on behalf of her clients, she was told that she needed authorization from both the husband and wife. But, during all of the delays, the wife s condition had worsened, and she was comatose. With his wife unable to sign paperwork, the Paralegal urged the man to file a new application at once. The Paralegal immediately filed a hearing request. The second application requested not only Medicaid and Food Stamps, but also State Emergency Relief (SER) to help pay back utility bills. Even though DHS was then supposed to pay the utility bills, the couple received a shut-off notice, because DHS paid only part of the bill. Since the wife was by then at home with hospice care, the situation was critical. After the Paralegal contacted the DHS Supervisor again the utility bill was paid in full. The couple is now getting both Medicaid and Food Stamps, and the hearing request has been withdrawn. This case was a quagmire of problems that neither the couple, a State Senator s Aide, or a Hospital Social Worker could address. Direct legal intervention was the only way to secure a positive resolution to this case.

10 Veteran Assisted in Securing Educational Benefits A Genesee County veteran sought assistance from LSEM in securing his educational benefits. He was unable to use his educational benefits within the requisite time period due to an intervening disability. With physician verification of his disability and college transcripts documenting that he was performing well in school both before and after his health required him to withdraw for a limited time, he was able to successfully appeal the denial of his benefits. With the extension to use his educational benefits in place, he hopes to be able to secure a degree in the near future. This will increase his chances of getting a job and potentially earning a higher wage than may have otherwise been possible. Termination of Benefits Reversed A Saginaw woman faced termination of benefits when it was time for her annual redetermination. The woman went for her required in-person redetermination interview with her Department of Human Services (DHS) Caseworker, but the Caseworker was not there. Two weeks of calling to reschedule the interview and leaving messages brought no response from the woman s Caseworker. She then received notice that her benefits were being cut-off for failure to schedule a redetermination meeting and return verifications. In addition to trying schedule her mandated appointment, the woman had also already put the required verifications in the DHS drop box. The woman then contacted her Caseworker s Supervisor, who admitted that the Caseworker had mishandled the woman s case and that the woman was not at fault. Still, the Supervisor concluded that procedures are procedures, and upheld the termination. The Supervisor verified this on a message left on the woman s answering machine. Having exhausted all options she knew to handle the situation herself, the woman came to LSEM. The LSEM Attorney sent the DHS Supervisor a letter explaining the client s position and requested that her benefits be reinstated at once. The letter gave the Supervisor 24 hours to respond. The Supervisor called the Attorney and informed him that the client s Caseworker had personal problems and had let all of her cases slide for months. The Supervisor informed the Attorney that DHS was putting out the worst fires first. Less critical cases, like that of LSEM s client who was getting income from SSI, were not priorities, even if the result was lost benefits. The Attorney demanded the client s benefits be restored that day or it would be necessary to file suit. The client s benefits were restored retroactive to the cut-off date, and the client got a new Caseworker. Without legal help the woman could have permanently lost needed benefits.

11 Impact Work The majority of the legal assistance Legal Services of Eastern Michigan (LSEM) delivers is directed at helping individuals with legal issues. In addition, though, LSEM engages in special projects to encourage systemic change in the community. This work furthers the part of LSEM s mission that commits the agency to providing services, which positively impact the poverty population as a whole. To make fruitful system-wide change, LSEM understands the necessity of involving other not-for-profit agencies, which serve a like population, and/or governmental entities in its work as evidenced by the over 100 working agreements it has with other agencies. Examples of impact work are described below. Access to Health Care Expanded In 2008 LSEM and its partner, the Center for Civil Justice (CCJ), broadened the scope of their joint Health Eligibility Law Project (HELP). The result has been an increased accessibility to governmental health care for both the under and uninsured. For five years private foundation funding was used to implement this healthcare program. Now, however, LSEM and CCJ have successfully supplemented this financial support by adding a new project partner. The Genesee County Health Plan (GHP) contracted with CCJ and LSEM to not only maintain existing services, but also to expand the assistance currently provided through HELP. CCJ assists GHP clients to identify other healthcare options, for which they may be eligible, i.e. Medicaid. By connecting existing GHP recipients with other healthcare, funding can be made available to offer GHP healthcare to people for whom it is the only option. CCJ helps these potential GHP applicants assess other public benefits for which they may be eligible and to fill out paperwork needed for GHP. LSEM assists those people, who may be eligible, to secure disability-based Medicaid. Also, LSEM and CCJ are conducting joint training that will instruct over 200 health care providers in eligibility requirements for various types of governmental healthcare and how providers can help low-income people meet these requirements. The overall project expands access to healthcare at all levels. The Working Poor Build Assets LSEM leads the Genesee Assets for Independence Network Collaborative, GAIN$. Project partners include Metro Housing Partnership, which does program intake and serves as the participant record keeper; four local funders; banks; and over 15 non-profit agencies that sponsor participants. GAIN$, which started four years ago, is a proactive response to Michigan s severe economic decline. As businesses moved away or closed their doors, unemployment rates soared, and the number of people living in poverty drastically increased. Even the working poor could not escape poverty. However, GAIN$ provides the working poor a chance to start a savings

12 account that is matched on a dollar for dollar basis up to a maximum of $4,000. Participants matched savings can be used for first time home purchase, post-secondary education, or starting a business. In addition to its leadership role, LSEM has written grants to secure funding from the U.S. Department of Health and Human Services, which has increased the pool of resources available to match participants savings. Participants also take money management classes, which give them skills that will continue to benefit them long after their involvement with the program ends. To date 65 people have used their matched savings to begin to work their way out of poverty, and five more have met their savings goal and are ready to graduate from GAIN$. Currently, 138 people have a GAIN$ savings account open. The most prevalent use of people s accumulated savings is to pursue post-secondary education. This collaborative project is a clear example of how LSEM helps to systemically create change to fulfill the portion of its mission dedicated to attacking the causes of poverty. Settlement of Disability Claims Expedited LSEM and other legal services agencies throughout the State are participating in a partnership between the Michigan State Bar Foundation and the Department of Human Services (DHS) to expedite resolution of disability claims. Local DHS Caseworkers review claims for disability-based Supplemental Security Income (SSI). Those claims that they feel may have merit, but lack the evidence needed to support the claim or those claims that were denied, but may have merit are referred to the legal services agency in their area. Local agencies, like LSEM, conduct their own initial case review to determine if they agree that the claim is meritorious. If the claim is deemed to have merit, the legal advocate goes about gathering evidence to support the claim, i.e. medical records. A legal brief requesting SSI be granted is written and accompanied by supporting evidence that was previously lacking, and the claim is again processed with an increased likelihood of being successfully resolved in the client s favor. This new process relieves part of the burden of DHS Caseworkers with huge caseloads, and decreases the chance that claims with possible merit will be automatically denied. The new system builds a second chance into the review of every application and expedites the processing of meritorious SSI claims. Since this system is being implemented on a statewide basis it has the potential of creating widespread systemic benefit for disabled people living in poverty. Fair Housing Testing Brings Widespread Change Legal Services of Eastern Michigan established a Fair Housing Center in1999 to ensure equal housing opportunities for all people, regardless of race, sex, age, color, religion, national origin, familial, marital, or disability status. The Fair Housing Center of Eastern Michigan now offers comprehensive fair housing services in Bay, Genesee, Midland, and Saginaw Counties, as well as conducting complaint-based testing in the remainder of LSEM s 14 county region. Fair

13 housing services include testing, enforcement, outreach, education, and research. Since all of the work the Center does is designed to change discriminatory practices and curb inequity in housing, it can be considered systemic in nature. However, special projects conducted by the Center are designed specifically to create systemic change that positively affects an entire protected class. One example of such a project is conducting parking assessments. Over a two year period the Center conducted assessments of parking in public/subsidized housing complexes to see if adequate parking was available for the disabled. If parking is insufficient or inaccessible it constitutes unequal availability of public housing to those with disabilities. Results of original assessments indicated that over 90% of all complexes tested were not in compliance with federal parking regulations for the disabled. Problems ranged from having less than the required number of spaces to having spaces blocked by dumpsters or used as places to pile snow during winter plowing. In those instances when test results showed that complexes were not in compliance, complaints were filed with HUD. Roughly 70% of those initial complaints have been favorably resolved, and there is now adequate parking available for the disabled in those particular complexes. However, the other 30% remain unresolved; further testing at these sites has been conducted, and in cases where complexes are still non-compliant new HUD complaints are being prepared for filing. To ensure that any benefits gained for the disabled continue, it is critical that testing of parking in public/subsidized housing be ongoing. The entire testing program is designed not only to guarantee availability of parking for the disabled, but also to increase their access to affordable housing, which is already in particularly short supply for this protected class.