Iola Housing Authority stands to lose $151,000 in reserve funds, now being reduced as lower monthly rent subsidies from the Department of Housing and Urban Development.
The only opportunity to recoup the money, Executive Director Carol Ross told Allen County commissioners Tuesday morning, is to join a class action lawsuit against HUD. To do so she must come up with $2,000 by Monday to pay Iola’s share of lawsuit expenses.
Commissioners agreed to provide $1,000, if another entity, such as Iola, paid the remainder. Iola council members turned down Ross’ request Monday night. If Iola Housing Authority doesn’t participate in the lawsuit, it has no chance of recovering the money.
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