Investigators: Pierce County Housing Authority going bankrupt

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Investigators: Pierce County Housing Authority going bankrupt

Tuesday, October 7, 2008

Northwest Cable News - Portland,OR*

By SUSANNAH FRAME / KING 5 News

http://www.nwcn.com/statenews/washington/stories/NW_100708INV_pierce_

housing_bankruptKC.efaa9c2f.html

SEATTLE - During one of the worst housing crises in decades, the

KING 5 Investigators have found the Pierce County Housing Authority

is about to declare bankruptcy.

The public agency helps thousands of low-income citizens every year

find affordable and subsidized housing, but the agency was about to

go under because of a pile of lawsuits over mold.

says moldy conditions in her low-income housing

apartment in Puyallup made her and her children sick six months

after moving in.

" My baby's had all kinds of ear infections, colds, respiratory

problems and my older son has been sick too, " she said.

decided to sue the Pierce County Housing Authority, which

owns the building and offers inexpensive rents to the poor.

More than 100 other tenants at the Eagle's Watch apartment complex

have sued the agency as well saying the agency didn't tell them

about the mold problem until it was too late.

" They don't tell you when you move in that you'll be living with

mold. And you are living in a lot of mold. And if I would have known

that I never would have moved in, " she said.

All those mold-related lawsuits - $21 million worth recently filed –

will break them financially, leaving thousands of people who depend

on them – now more than ever – in the lurch. They say to keep

affordable apartments like these available, they have no choice but

to file for bankruptcy.

" We would not be able to stay open with $21 million worth of

lawsuits and litigation, " said Charlie Gray, Pierce County Housing

Authority.

The housing authority has already shelled out 3/4 of a million

dollars to plaintiffs and their attorneys who sued over mold last

year, and they paid their own defense attorneys more than a million

dollars along the way – nearly $2 million already – enough to put

them over the edge.

" It's heartbreaking to know how much money has been spent on

litigation that could have gone back into the affordable housing

communities, " said Gray.

Staff at the Pierce County Housing Authority will be struggling in

the next few days with what to do next. What they know for sure is

that with more than 100 outstanding lawsuits and bankruptcy

proceedings about to get underway, they'll be paying court costs and

legal fees for many months to come.

The Pierce County Housing Authority believes that by filing for

bankruptcy they'll be able to continue to provide housing help for

more than 8,000 people in need in Pierce County.

It's unclear if bankruptcy will protect them from the lawsuits that

have been filed.