If any legal action is brought against any representative of any housing agency, whether such person is a volunteer or partly paid or fully paid, based upon the negligent error or omission of such person while in the performance of his or her lawful duties, the housing agency shall defend him or her against such action, and if final judgment is rendered against such person, the housing agency shall pay the judgment in his or her behalf and shall have no right to restitution from such person. A housing agency shall have the right to purchase insurance to indemnify itself in advance against the possibility of such loss under this section, and the insurance company shall have no right of subrogation against the person. This section shall not be construed to permit a housing agency to pay a judgment obtained against the person as a result of illegal acts committed by such person.
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