For those living paycheck to paycheck or without a paycheck at all, like many of CLS' clients, the threat posed by an instable economy is all too real as jobs are lost, homes are foreclosed, and illnesses go untreated. A recession affects the fundamental well-being of a low-income family, and CLS has never been needed more to preserve what is essential. 

 

But our clients come to us for more than our legal expertise. Our staff offers compassion and empowerment to those who are most vulnerable to falling through the cracks at times when they feel there is nowhere to turn. No matter what the situation is--helping our clients access benefits, housing, medical care, or employment--CLS meets the individual needs of our clients.

 

In 2009, CLS represented approximately 17,000 low-income Philadelphians. Our annual report features four stories that highlight the incredible hardships our clients faced this past year, and the relief we were able to offer them. 

 

 

 

 

 

 

 

 

 

In 2010, CLS celebrates its 44th year of providing legal services to our community. We assist our most vulnerable neighbors at times of great need with pride and humility, knowing we could not weather the storm ourselves, without the support of friends like you. We thank you for your commitment to our clients, our community, and our mission of equal access to justice.

 

This past year, CLS has devoted significantly more resources to address the escalating foreclosure crisis that is wreaking havoc on Philadelphia's low-income communities. As the recession has deepened and homeownership options have dwindled, we have witnessed a rise in mortgage rescue scams and fraudulent rent-to-own agreements that target these vulnerable communities, stripping them of their right to equity in the home and usually leading to foreclosure cases that can be difficult to defend. 

 

One example, the so-called "Landvest case" that was featured prominently in the Daily News, involves approximately 280 families victimized by this precise type of scam. In early 2009, CLS paralegal Esther Alvarez noticed a pattern of clients coming through intake; several Spanish-speaking clients had begun to receive notices to remit their payments to the bank, not the landlord, with whom they believed they had entered into a rent-to-own agreement on their homes. With what little money they had, these buyers had given down payments, sometimes as high as $10,000. Some clients had even spent over $20,000 on home repairs to make the properties livable. What the buyers didn't know whas that the landlord took out mortgages on the improved properties, to the tune of more than $20 million dollars. At some point, the mortgages became delinquent, and now the mortgage companies are moving to foreclose on their homes.

 

Since identifying this fraud scheme, CLS attorney Jennifer Schultz and her colleagues in the Consumer Unit have worked tirelessly to provide Landvest victims with recourse in court. With the help of CLS,  Philadelphia Volunteers for the Indigent Program, and Philadelphia Legal Assistance, the Philadelphia Court's Mortgage Foreclosure Diversion Program has halted nearly 200 sheriff's sales of such properties. CLS continues to identify and assist potential victims of Landvest.

 

Learn more about our Consumer Unit >

 

The federal stimulus law gives Pennsylvania the opportunity to draw down $360 million in federal aid to low-income families. So far, Pennsylvania has drawn down only $29 million of this money and has only limited plans for further expenditures -- although the September 2010 deadline for expenditures is fast approaching. Pennsylvania should act decisively to create jobs and other programs to help low-income parents - and the state's economy - with these federal dollars.