Some 900 public housing tenants will be eligible for refunds from the Vancouver Housing Authority following a nearly $500,000 settlement that was granted Friday in U.S. District Court’s Western District of Washington.
Judge Ronald B. Leighton approved the settlement, ending a class action lawsuit filed on March 10, 2015, according to Columbia Legal Services, which co-represented the tenants in this case.
The eligible tenants lived in VHA public housing between April 1, 2004, and April 30, 2011.
Three tenants, Annie McCullumn, Nancy Ramey and Tami Romero, challenged VHA’s alleged failure to adjust its utility allowances when rates increased. They claimed low-income families ended up paying more rent than allowed under federal law, according to a news release.
Public housing tenants should not pay more than 30 percent of their monthly income for rent and utilities. VHA is required to establish, annually review and adjust its utility allowances so that households don’t spend more than the allowances for utilities.
The lawsuit claims that VHA failed to annually review and adjust its allowances as required by U.S. Department of Housing and Urban Development regulations.
VHA will allocate $488,824.02 to a settlement fund. However, the organization denies it violated any law or that any tenants were harmed, the news release said.
Many tenants have already received refunds from VHA in January and February 2010 and March 2011, and may not be eligible for further refunds.
Columbia Legal Services staff attorney, Gregory Provenzano, said in an interview that a settlement was discussed long before the lawsuit was filed. VHA sent out three rounds of refunds during that time. “Our position was that it wasn’t adequate,” Provenzano said.
“This is a fair settlement for VHA public housing residents. Not only will some class members receive refund checks, but VHA has agreed to make changes to some of its policies and practices regarding utility allowances that will provide ongoing benefits to class members,” he said in a statement.
Roy Johnson, executive director of VHA, is quoted in the news release as saying that VHA disagrees with the lawsuit and doesn’t believe any tenants were harmed.
“VHA would like to move past this dispute and continue focusing its efforts and financial resources on providing critical services to low-income individuals and families in Vancouver,” Johnson said in the statement.
Provenzano said VHA will send out a letter in September notifying tenants about the settlement. Refund checks will follow about 60 days later, he said.
Perkins Coie LLC also represented the tenants and former tenants in the case.
