After a series of ABC 6 On Your Side Problem Solvers investigations into the Columbus Metropolitan Housing Authority, CMHA and its third-party vendor CGI are subject to a class-action lawsuit filed within Franklin County Common Pleas Court.
The plaintiff, Highpoint Asset Management, claims the housing authority owes them money due to not making Section 8 rent payments for tenants. That along with delayed housing inspections now conducted by CGI are being cited as a breach of contract, breach of duties, and acting in a wanton and reckless manner.
Multiple calls on CMHA issues continue to come into Problem Solvers from both tenants and landlords. Last month, Paulette Clark was still waiting for an inspection to move into new housing. She cannot receive federal rent assistance without it. Due to the delay, she said she's slept in both motels and her sister's car since January.
After Clark's story was featured on ABC 6/FOX 28, Highpoint Asset Property Manager Amber Corbett called Problem Solvers to say she's not received rent for many of her Section 8 tenants from CMHA for months. Corbett said she needed help to expose the matter in attempts not to evict them.
"We're in a housing crisis, right now," Corbett said last month. "If we're expected to take certain organizations in, somebody needs to be accountable to make sure we're getting paid."
Highpoint Asset Management Attorney Alex Castle said the lack of payments is adding up as well as the stress for their Section 8 tenants worried about eviction. He is listed on the suit filed on behalf of affected tenants and landlords of 13,000 Section 8 properties in Columbus. The suit states CMHA continues to take applications for its Section 8 program while not fulfilling duties. Allegations claim, "As a direct and proximate cause of this inequity, CMHA has been unjustly enriched."
Representatives for CMHA first told Problem Solvers this week that they were unaware of the lawsuit. They then responded that they do not comment on matters subject to pending litigation. Last month, CMHA administration said that they had laid off dozens of employees and hired third-party vendor CGI. They admit the transition was rocky and caused a 10-day window of no inspections and created a backlog of 1,300 cases.
The next court date scheduled for the lawsuit is scheduled for October.