Harborside Condo settlement for $2.8 million moves forward

July 06--BREMERTON -- Since filing suit about a year and a half ago, the Harborside Condominium Owners Association has an agreement to pursue $2.8 million in settlement costs for construction defects.

In March 2013, the association filed a list of defects in its lawsuit against Kitsap County Consolidated Housing Authority, now known as Housing Kitsap.

Construction defects included:

-- Water pooling and drainage issues on the roof.

-- Cracks in drywall and foundation walls.

-- Uneven cabinets.

-- Leaking showers.

-- Leaking pipes.

-- Others problems.

During its July board meeting, Housing Kitsap approved an agreement that the Harborside Condominium Owners Association has the right to pursue a settlement of $2.8 million from the housing authority's contractors and insurance companies.

The owners association has already received a $840,000 payment through one insurance company and will be negotiating or filing suit for the rest of the $2.8 million, said Marlyn Hawkins, the association's attorney.

None of the settlement will come directly from Housing Kitsap, said Judy Henry, interim executive director. The settlement will be paid by insurance policies.

In 2009, the county saved the financially sinking authority with a $44.5 million bailout. Most of the authority's debt came from backing the 78-unit Harborside Condominium complex in downtown Bremerton.

One Harborside condo sale is pending and there are two remaining units for sale.

Absher Construction Co., based in Puyallup, was the general contractor for the Harborside Condominiums.

Absher and the housing authority previously had litigation over the condos and eventually reached a settlement.

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