Utility Allowance Schedules
Failure to maintain or provide the utility allowance and supporting documentation annually is considered an event of noncompliance. Without proof of the amount of the allowance, there is no way to correctly compute the rent. In addition, an incorrect utility allowance calculation may result in noncompliance for rents that exceed the maximum LIHTC rent limits and/or the Low HOME/High HOME rent limits. Owners/Agents are responsible to contact the appropriate organization to request current utility allowance information.
Unless otherwise provided for above, any costs incurred in obtaining a utility allowance are the responsibility of the owners/agents. Note: Pursuant to Treasury Regulation Section 1.42-10, units occupied by households with a Section 8 Housing Choice Voucher or other state or local government rental assistance must use the utility allowance required by the applicable rental assistance program.
UTILITY ALLOWANCE SCHEDULES
LIHTC Program
Utility allowances must be reviewed and updated at least annually. Regulations require that new utility allowances be used to compute rents that are due 90 days after the effective date of the new allowances.
Utility Allowance Method - Change Request
Updated 02-26-2020
In conjunction with Suballocators and Minnesota Housing, AHC has established a protocol for reviewing Owner requests to change the utility allowance methodology from the utility allowance published by the local PHA to other methods allowed by program regulations.
See the UA Method Change Request Process (below) for instructions on how to submit the request as well as the documents required for submission.
Please note, due to the additional staff time required to process these requests, a separate fee will be charged to Owners for the reviews.
UTILITY ALLOWANCE SCHEDULES
HOME Program
On January 6, 2024, HUD published a final rule in the Federal Register titled “HOME Investment Partnerships Program: Program Updates and Streamlining,” which streamlines HOME Program regulations, reduces regulatory burden, and increases flexibility to support affordable housing development. The rule also reinstates the use of Public Housing Agency (PHA) utility allowances for HOME assisted rental projects, allowing UAs to be based on the HUD Utility Schedule Model, the local PHA schedule, or another HUD approved method. All Minnesota HOME PJs monitored by Affordable Housing Connections approved the use of the local PHA’s utility schedule.
If HUD or MN Housing establishes the rent and utility allowance for HOME assisted PBA units, the rent and UA established by these agencies prevail.
PJs are required to review and approve utility allowances annually. Owner/managers are required to implement the appropriate, approved utility allowance at the time a household moves into a HOME assisted unit and at lease renewal.
Utility Allowance Method - Change Request
Updated 02-26-2020
In conjunction with Suballocators and Minnesota Housing, AHC has established a protocol for reviewing Owner requests to change the utility allowance methodology from the utility allowance published by the local PHA to other methods allowed by program regulations.
See the UA Method Change Request Process (below) for instructions on how to submit the request as well as the documents required for submission.
Please note, due to the additional staff time required to process these requests, a separate fee will be charged to Owners for the reviews.