NORTHAMPTON — The Northampton Housing Authority has chosen to bank a substantial legal award it received as part of a class-action lawsuit against the United States Department of Housing and Urban Development.
At its Monday meeting, the housing authority’s board of commissioners voted to put the $370,987 won in the lawsuit into an interest bearing account for six months at the suggestion of Northampton Housing Authority Executive Director Cara Clifford.
The lawsuit had its origins in 2012, when the Northampton Housing Authority’s yearly subsidy from the housing department was reduced because of the size of its reserves.
The housing authority was then invited by the Washington D.C. law firm Coan & Lyons to join a class-action lawsuit. This required a $2,000 legal fee, which the commissioners agreed to spend.
The lawsuit involved more than 300 housing authorities from Maine to Hawaii, and asked for nearly $135 million.
“It was enormous,” Tom O’Connor, attorney for the Northampton Housing Authority, said of the class-action lawsuit.
The lawsuit was won by summary judgment in 2017, with more than $135 million awarded to plaintiffs. The money awarded to the Northampton Housing Authority was received on Jan. 19, 2018, from the U.S. Treasury. The money received makes up for almost all the money the authority lost in 2012 when HUD reduced its subsidy, according to the housing authority.
Currently the housing authority is waiting to hear back from HUD on how they can use the money received through the lawsuit.
Bera Dunau can be reached at bdunau@gazettenet.com.