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

HOME Program

The 2013 HOME rule changed the methods allowed to Participating Jurisdictions (PJs) for establishing utility allowances (UAs) for HOME assisted projects. Under the new 2013 HOME Rule, PJs no longer are allowed to use the UA schedule published by the local Housing Authority (HA).

If HOME funds were committed to your project on/after August 23, 2013 and the project is not governed by HUD or MN Housing PBA contracts, then your project is affected by the 2013 HOME Rule and your HOME assisted project must use the UA schedule approved by the PJ that provided the HOME funds to your project.

If yours is an existing HOME project and you have always used the HA’s UA, then your project is exempt. HOME assisted projects to which HOME funds were committed prior to August 23, 2013 are NOT affected by this rule change and can continue to use the local HA’s UA schedule.

HOME assisted projects with HOME units that also have S-8 PBA contracts are exempt from using the new UA method. If HUD or MN Housing establishes the rent and utility allowance for the PBA units, the rent and UA established by these agencies prevail.

Please see the following link for additional information on keeping compliant with HOME rent regulations.

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.

AHC Review Process UA Method Change Requests

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.