The writ claims that Kennedy, who was in charge of the association's Burncross Road care home, took the cash over a three year period since April 1996 from the bank accounts of residents, who have learning difficulties.
The association is further claiming that he used some of the money to buy a silver Audi A4 car together with a personalised number plate said to be "cherished" by Kennedy - K900GUY.
Papers served in the High Court in London say Kennedy withdrew money from the Halifax Building Society accounts of the tenants on the pretext of paying their rent, which he was authorised to do, only to keep part some of it for himself.
The income of all 12 of the home's residents is made up entirely of Department of Social Security benefits - covering rent, a personal allowance and a disabled living allowance.
New Era, which in Sheffield houses 96 people and employs 200 staff, wants Kennedy to hand over the £154,000 along with interest and the Audi.
In a statement, the association refused to confirm or deny whether a recent internal audit report - which lead to the dismissal of "a middle manager in Sheffield" for "financial irregularity" - was connected with the Kennedy case.
Chief executive David Wolverson said: "I have assured the tenants' parents and relatives that New Era will ensure that they do not suffer any personal loss.
"Following an internal investigation I am confident that the irregularities relate primarily to rent payments. We are currently reviewing all our procedures to ensure we further minimise the risk of similar incidents."
Police are also holding an inquiry. A South Yorkshire police spokeswoman said officers are "investigating irregularities allegedly committed by an employee of a housing association in the Sheffield area."
Kennedy was not available for comment.
Source
Housing Today
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