LINCOLN, Neb. (KMTV) — People that live in almost every county in Nebraska, outside of Douglas or Lancaster County, is over one million people, no longer have access to federal rent assistance and the state lost out on millions that could have alleviated the problem.
“Low-income renters in these counties are going to be hurting in the months ahead,” said Scott Mertz, Managing Attorney with Legal Aid of Nebraska.
Mertz said renters initially thought they’d be able to have their rent paid the rest of the year. Then once that went away, they believed there would be $15.5 million going to nonprofits, all for programs to support low-income Nebraska's housing needs.
But nonprofits were told last week the state missed the deadline and the money is going back to the treasury.
“When you have so many people expecting something and it doesn’t happen. We’re going to see an adverse impact not just in small pockets across the state but really all across the state,” said Mertz.
The governor’s office tells 3 News Now that late changes from the US Treasury Department posted in mid-September are to blame for the money going away.
As to what the state can do now? There appears to be one solution.
“The governor could solve this with a single email and he could get the money tomorrow,” said State Senator Matt Hansen, of Lincoln.
Hansen said the governor could ask the recoup the second patch of federal rent money he initially rejected.
The governor’s office told 3 News Now on Monday, the issue was debated in the Spring and the governor’s decision isn’t changing.
Hansen, who mentioned the September deadline on the floor of the legislature this spring, said it’s ultimately up to the next governor and legislature.
“We knew it was coming and it’s tragic that it was here but it wasn’t a surprise, unfortunately,” said Hansen.
Mertz also said 30% of the evictions occur in the 91 smallest counties in Nebraska.
“So the expectation will be we’re going to see those numbers go up and up and up,” said Mertz.
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