ANDERSON — Based on the advice of its insurance carrier, the Anderson Housing Authority has hired Indianapolis law firm Barnes & Thornburg to represent it in a federal lawsuit.

The Fair Housing Center of Central Indiana and two tenants filed a class-action lawsuit against AHA, citing sexual harassment, racial discrimination and health problems related to conditions that the management failed to address at Westvale Manor.

Among the common complaints, according to the lawsuit: Water leaks, mold pests and inadequate maintenance of the apartments.

AHA attorney Bill McCarty informed commission members on Wednesday that Michael Palmer with Barnes & Thornburg has been retained to handle the case.

McCarty said the case is in the preservation of documents phase, adding all the documents have been preserved.

“He (Palmer) is working on a response and asked for additional time,” McCarty said. “Another request for additional time would not be a surprise.”

McCarty said the insurance company requested that Palmer handle the case because of his past experience with public housing litigation.

During the meeting, Charles Weatherly Jr., executive director of the AHA, said the city confirmed it will provide $42,000 for repairs to Westvale Manor.

Weatherly said the funds will be used to make major repairs, in particular the roof. He said the housing authority will be reimbursed by the city through Community Development Block Grant funds.

“We have to provide proof the work was done,” he said.

The work is expected to be started when $160,000 in capital improvement funds are received from U.S. Department of Housing and Urban Development.

Commission members were informed that 18 of the 134 units at Westvale Manor are currently vacant. Weatherly said 13 of the tenants were moved to the subsidized Section 8 housing program.

AHA has also been approved for $25,000 to hire a housing counselor through CDBG funds.

Weatherly said AHA has applied for a $250,000 HUD grant to fund the housing counselor position for three years.

The grant would cover the cost of salaries and benefits.

Weatherly said the counselor would help residents obtain available services in the community.