OHA and city will settle on Keystone project

[eomaha]

I'm sure the low income housing NIMBY's can't be happy.

OHA, city agree to settle lawsuit

The Omaha Housing Authority agreed Wednesday to settle a lawsuit it had filed against the City of Omaha last spring over a low-income housing development it would build in Keystone.

A day after the Omaha City Council agreed to the plan, the OHA board voted 4-0 to accept the settlement, which now goes to federal court for final approval.

The consent decree outlines certain guidelines over the next five years.

The settlement does not guarantee that OHA can build its proposed 41-home development at 87th and Boyd Streets. But it does allow the housing agency to propose the development again to the City Council.

It also requires dissenting council members to state why they won't approve it and to link their reasons to the city's master plan and legitimate land-use issues.

Councilman Franklin Thompson's earlier appeal for basements in the Keystone units, city attorneys have said, would not be enough of a reason to turn down the development.

Keystone residents, longtime opponents of a development they describe as too dense for the seven-acre property, are renewing a request to intervene. A federal magistrate struck down an earlier attempt.

Six residents have filed a new motion to intervene, claiming, among other reasons, that the city is not adequately representing their interests. It's unclear whether the move will halt the proceedings.

Timing is essential for OHA, which is seeking about $3 million in tax credits to help fund the Keystone project. Brad Ashford, OHA's executive director, said the agency hopes to obtain City Council support by the end of the year.

Under the settlement, housing agencies could appeal to U.S. District Court if the council rejects the plan.

On Tuesday, City Councilman Chuck Sigerson cast the lone vote against settling. He has complained that OHA's lawsuit unfairly implies Keystone residents are opposed to the development for racial reasons.

Ashford called the council action positive.

"The city and OHA have developed a road map which we can use into the future to develop good, sound (affordable housing) projects for Omaha," he said. "It's a pretty big deal."