Iowa City's Dolphin Lake Point Enclave to lose Section 8 funding

City officials cite breach in payment contracts; some residents say they're pleased with move

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An Iowa City town home development will no longer receive federal Section 8 dollars from the government.

May will be the last month anyone living in the Dolphin Lake Point Enclave will receive housing assistance.  The city of Iowa City cited a breach in the Housing Assistance Payment Contracts for the action.

On Tuesday, a member of the public presented the issue to the Iowa City Council, asking that residents of the area have their needs addressed.

Right now, 39 individuals or families receive assistance at the complex.  Those people will be eligible to continue receiving the money, but only if they move away from Dolphin Lake Point. Nine individuals or families have already left the complex since a notice of the city's actions went out in October.

"They actually thanked us," said Steve Rackis, Iowa City housing administrator. "By doing this, this jump started them to finding different housing, because they didn't want to live out there anymore."

Dolphin Point representatives declined to comment on Wednesday.  Rackis said he's only had one conversation with a complex representative, which happened on Tuesday.

"This is non-negotiable," he said.

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