
November 14, 2008 Reported By: Josie Huang
Last winter, the Bangor Housing Authority was grappling with the high price of heating oil like everybody else. The authority includes heat as part of the rent for its low-income tenants. Faced with rising oil prices, the authority imposed a surcharge, for the first time ever, on tenants whose heating oil consumption was deemed excessive. But now, as Josie Huang reports, a lawsuit filed by two tenants alleges that the housing authority, and its executive director Elsie Coffey, broke federal regulations when it charged the extra costs.
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"Essentially those requirements are that advanced notice be given of the intent to do this that the tenants have the opportunity to see the basis for these charges and to comment on them." Portland lawyer Rufus Brown represents the tenants. "And that they be informed of their right to get individual relief if they’re circumstances beyond their control. Last year those requirements were not met and the rationale by the public housing authority was that this rise in heating costs was a surprise and they didn't have time to follow the rules."
The suit, filed last week in U.S. District Court in Bangor, was brought by two women who live in apartments owned by the Bangor Housing Authority. The plaintiffs, Melissa Seidell and Amanda Black, are seeking class-action status on behalf of 400 other tenants. After the heating season ended in the spring, the housing authority charged Seidell $118, and Black $363. Surcharges were applied to about 30 or 40 other tenants, says their attorney.
The women appealed the charges in September, but were denied by the authority's hearing board. They have since paid the bills. With the lawsuit, they are seeking a refund for themselves and other tenants who had to pay a surcharge last winter. "They're having to pay extra for something that they never knew about, never told about and could do nothing about." Jack Comart is the litigation director with Maine Equal Justice Partners, which stepped in to help after the women's appeals failed, and retained the services of Rufus Brown. Comart says the housing authority's executive director Elsie Coffey did warn tenants in a December 2007 newsletter about the rising cost of heating oil, and that a surcharge would be applied if they used more gallons than they were allotted for a unit of their size. "But, then she never told them how much they each were allotted. The tenant would have to guess it, you know, whether they were using too much fuel. I mean, the oil company’s giving the housing authority a bill for each unit, each time they fill the tank up. We don't think it's very difficult for the housing authority to make a copy of that bill and give it to the tenant and say, you used 200 gallons or whatever."
Elsie Coffey, could not be reached for comment. Last month, Coffey sent a letter to tenants, telling them they would be charged for excess usage of oil. This time, the reminder told them how many gallons they could use each month, depending on what type of what unit they have. A two-bedroom end unit, for example, is allotted 91 gallons a month. Coffey also gives tenants tips to keeping their heating costs down like by wearing warm clothing and opening drapes during the day to let the sun in.
Aside from seeking refunds, the plaintiffs want to force the housing authority to follow rules on surcharges as set forth by the U.S. Department of Housing and Urban Development, or HUD. This year, though, the housing authority might not have to impose any surcharges. Worldwide oil prices have plunged in recent weeks, and the federal energy department is now reporting that fuel oil bills are expected to fall 13 percent from last winter. |