The Omaha Housing Authority (OHA) has filed a lawsuit challenging a new state law that requires housing agencies to pay for legal fees when evicting tenants. The agency argues the mandate puts an unfair financial strain on its federally funded budget.
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New Law Explained
The law, known as the Poverty Elimination Act, was passed in April 2024. Introduced by State Senator Tarell McKinney, it requires public housing authorities to cover the cost of legal counsel and eviction-related expenses for tenants they seek to remove.
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Lawmakers Behind the Bill
State Senator John Kavanaugh supported the measure alongside McKinney. The goal, supporters say, is to ensure low-income tenants have fair access to legal help when facing eviction.
OHA Pushes Back
The Omaha Housing Authority argues it is funded entirely by federal dollars and cannot legally redirect money meant for housing operations to pay for legal fees.
Agency Cites Funding Gap
In a statement, OHA said the new law “provides no funding to OHA and argues that covering the legal expenses creates an unreasonable financial burden.”
Talks With Lawmakers Fail
The lawsuit follows failed attempts by the housing authority to negotiate a solution with lawmakers that would allow the agency to meet the legal requirement without draining its budget.
Senator Responds
Senator Tarell McKinney reacted strongly, saying, “I am disappointed but not surprised to see OHA sue to avoid compliance.”
Court Battle Ahead
The outcome of the lawsuit could set a major precedent for how local housing authorities handle tenant rights protections tied to federal funds and state law.
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