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FAQuestions: Utility Increases
What must be included in the
Utility Analysis?
Summary from the owner supporting the proposed change that
should include the following:
- Identify the types of utilities covered in the UA (gas, electric, etc.)
- State whether utility rate increases or decreases were implemented in the past 12 months and if the rates are expected to change over the next 12 months. The Owner/agent (O/A) must provide the amounts of rate changes
- State how any conservation
initiatives will impact consumption
The O/A must provide a utility allowance recommendation of at least a 10% sample for each unit type once a year. The owner submission should show detailed records of the utility charges (not including telephone) for each bedroom size under contract for the last 12 months. NOTE: The sample should reflect the various characteristics of the overall complex.
This is the preferred submission package. Owners are encouraged to work with their utility companies and tenants to get this information. If an owner can support that his efforts to obtain their records have been unsuccessful he may use actual utility bill from the tenants, with the tenants permission.
If the Utility Analysis decreases, the O/A must notify the tenants 30 days before the effective date.
I am an owner. When am I required to submit a utility analysis?
Anytime you request a rent increase or when your utilities increase or decrease 10% or more. This should be submitted 120 days before the anniversary date of the contract, along with your next increase or funding package.
Do all properties have to submit a utility analysis?
No. This rule applies only to those properties where tenants pay a portion of the utilities. These properties have utility allowances and must submit an analysis.
What does AHSC require in a utility analysis submission?
- Summary for an increase or decrease in the utility allowance
- O/A must identify the types of utilities covered in the utility allowance (eg. gas, electric)
- State whether utility rate increases or decreases were implemented in the past 12 months and if the rates are expected to change over the next 12 months. The O/A must provide the amounts of rate changes.
- State how any conservation initiatives will impact consumption
- The O/A must provide an appropriate sample size of at least 10% of utility costs incurred over the last year of each unit type to support utility allowance recommendation. The owner submission should show detailed records of utility charges (not including telephone) for each bedroom size under contract. NOTE: The sample should reflect the various characteristics of the overall complex.
- O/A submission should include documentation for the utility costs used preferably from the utility company. If the O/A is unable to obtain this information from the utility company, the next option would be to obtain the information from the tenants. If obtaining information from the utility company is not possible and the O/A can submit documentation of this attempt and obtaining information from the tenants is not feasible, the owner may use the local PHA utility allowance information.
Where can I find more information about utility allowances?
Refer to the Code of Federal Regulations 880.610 and the HUD Handbook 4350.1 Chapter 7-24 for more information. |
