Iowa City May Lay Off Two at Housing Agency

The sign on N. Dubuque Street in Iowa City. (Mark Cahill/Iowa SourceMedia Group)

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By Max Walker

IOWA CITY, Iowa (AP) - Federal budget cuts may force the city of Iowa City to lay off two employees at its low-income housing agency.

In a memo to the city council, city manager Tom Markus says the Iowa City Housing Authority has suffered a significant decline in funding because of sequestration, the across-the-board cuts that went into effect this year. The agency administers the city's Section 8 program, which provides housing vouchers for low-income families.

Markus says the program's administrative budget has been cut by 30 percent. He says the layoffs of two program assistants are necessary in order to make it balance.

The city council next week will consider a resolution to approve the layoffs, which would be based on seniority and become effective in February

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