Federal sequestration prompts layoffs at housing agency

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Federal sequestration will force the Indianapolis Housing Agency to the trim the budget—a move that will result in layoffs.

IHA receives most of its funding from the federal government, and with deep cuts going into effect on March 1, the agency had to make some changes. In all, IHA needs to trim $3.8 million.

In April, the agency implemented furlough days, requiring workers to take nine days of unpaid leave through the end of the year. Now, the agency will lay off eight employees and leave vacant positions unfilled. Some of the workers will have the option of transferring to lower-paying positions.

Other changes include freezing hours for part-time employees during weeks when other employees are on furlough, delaying capital technology expenditures and delaying central office building repair. The cuts will offset about $1.4 million, but more cuts could be forthcoming depending on what happens with federal sequestration.

Each year, IHA helps more than 9,600 families find and maintain affordable housing through the Section 8 voucher program.