Residents of award-winning project sue Seattle Housing Authority

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By Bryan Johnson

Summary

The problem that led to the lawsuit involves the heating and water system, particularly in phase-one houses, and allegations that the housing authority underestimated ongoing costs in the dues structure.

Story Published: Mar 26, 2008 at 7:23 PM PDT

Story Updated: Mar 26, 2008 at 7:23 PM PDT

Residents of award-winning project sue Seattle Housing Authority
SEATTLE -- The Homeowners' Association at the award-winning NewHolly Community is suing the Seattle Housing Authority.

NewHolly has won national praise for the housing authority as an example of how a deteriorating public housing project can be turned into a vibrant, mixed-use community with market rate housing alongside rental and subsidized housing.

The problem that led to the lawsuit involves the heating and water system, particularly in phase-one houses, and allegations that the housing authority underestimated ongoing costs in the dues structure.

The home owners say those low dues and mismanagement left a $700,000 shortfall in reserve funds when the New Holly Homeowners Association took over management from the housing authority.

The biggest problem is the innovative radiant hot-water and heat system that was installed.

Ina Percival's heating system now looks like something from Star Trek. A maze of tubes carry heated water throughout her house. It cost her thousands and thousands of dollars to replace the original system, but she says it was money well spent.

"What you often had to do is choose between taking a hot shower and heating your home and often not being able to do either one effectively," she said.

It was more than creature comfort that made Percival act. She has pictures of the original system.

The red pipe installed about ten years ago couldn't take the heat. The pictures show evidence of water leakage and mold.

Dave Brown, president of Fox Plumbing, saw the mess first-hand while working on the system.

" What we are finding is massive amounts of contaminated water, dirty, slimy buildup that lays out in these heat loops," he said.

New Holly homeowners are suing the Seattle Housing Authority, claiming it has known about the heating system problems since January 2004.

They say an independent study in 2006 by the housing authority found there was some metal contamination in the drinking water. Homeowners say they didn't get that report until 18 months later.

Pictures in the independent consultant's report show heavy corrosion in the pipe fittings. Some of the pipe itself is not laminated, and a buildup in the pipes is evident.

The housing authority tells KOMO 4 News it's also a victim; their rental units are also affected.

The authority says it is not clear whose responsibility it is to correct the heating and plumbing problems, including separating the heating system from the hot water supply system in the phase-one homes.

"We continue to offer to work with the Homeowners' Association to figure out definitely what the problem is and address it as such," said Virginia Felton of the Seattle Housing Authority.

The housing authority says it has addressed most of the problems in the lawsuit. But officals don't know who is responsible for repairs to the heating system. Percival is not convinced.

"Working with SHA unfortunately, I hate to say it, but it has been like spitting in the wind," she said.

The housing authority say it meets regularly with the homeowners and they were surprised and disappointed the lawsuit was filed. It says the suit won't stop the authority from trying to reach a solution.