Holiday Village East residents Harry and Rita Schmoll and Leonard and Eleanor Egnack filed a lawsuit in November 2002, and the action was later granted class-action status. The lawsuit alleged that some of the utility rooms, which house gas-powered furnaces, hot water heaters and dryers, were not properly ventilated. All were built on or after Nov. 30, 1992. Officials have said about 400 of the more than 1,000 homes in the development could be affected.

The homeowners contended in the suit that the configuration of some utility rooms in the age-restricted development built by J.S. Hovnanian & Sons LLC could lead to potentially fatal carbon-monoxide poisoning.

According to the settlement, that was reached recently, the developer would pay to inspect and, if needed, improve ventilation in utility rooms in the Holiday Village East development.

State Superior Court Judge Michael J. Hogan granted preliminary approval to a proposed settlement in the case in August. He has scheduled a fairness hearing on the matter for 1:30 p.m. Dec. 2, 2005 at the courthouse in Mount Holly, according to the notice.

While the Mount Laurel-based developer did not admit any fault in the case, the firm has agreed to fix any problems, according to the settlement notice.

Hovnanian would pay to have the utility rooms inspected by Mount Laurel building code officials. If the inspection finds a problem, repairs would be done at the developer's expense. All class members also receive a free carbon monoxide detector.

Class members who object to the proposed settlement must send their written objection to the court and the attorneys representing the class and the developer no later than 10 days before the Dec. 2, 2005 hearing.