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AGENDA RECOMMENDATION |
Item No: 4.B.
Economic Development Authority
- Meeting Date:
- 01/13/2025
Agenda Item:
Resolution adopting the EDA Housing Choice Voucher Program Utility Allowance Schedule.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The United States Department of Housing and Urban Development requires the annual review and adjustment, if required, of tenant-furnished utilities. Utility allowances are based on reasonable consumption of energy for conservative families to provide basic essentials needed to provide a living environment that is safe, sanitary, and healthful. This year’s analysis was conducted by The Nelrod Company and includes a review of consumption through the following analysis method:
The utility allowance schedule has been adjusted using the latest HUD projections where needed. The new rates show slight decreases in electric and gas rates and increases in water and sewer rates. The use of this schedule provides average utility costs to participants who pay their own utility costs and streamlines efficiency in calculating rent subsidies using standard rates under the Housing Choice Voucher program, Public Housing and other affordable housing projects that access these schedules throughout the county.
The HUD 52667 Allowances for Tenant Furnished Utilities are broken down by basic utilities subsidized by HUD. The schedules are broken down for High Rise Apartments, Low Rise Apartments, Rowhouse/Townhome/Duplex, Mobile Home, and Single Family.
Utilities are included in gross rents and in establishing our payment standards. This schedule is used in determining rent subsidies when a tenant is responsible for the cost of some or all the utilities. These allowances are based on typical costs of utilities paid by energy-conservative households that occupy housing by size and type in a community. The PHA must use the appropriate utility allowance for the lesser of the size of dwelling unit actually leased by the family or the family unit size as determined under the PHA subsidy standards.
For example: a 2BR single-family detached home paying electric heating $107, cooking $12, other electricity $62, water heater electricity $35, and electric standard charge $19 would have an estimated utility allowance of $235.00. If we have a 2BR unit that rents for $850, add on the estimated utility of $235, we have a gross rent of $1,085. Households pay approximately 30% of income towards this gross rent.
The requested action is to review and adopt the 2025 utility allowance schedules as presented.
- Costs were received from local vendors for heating, electricity, water and sewer, and garbage. These costs across the county were collected and averaged.
- These costs were compared with previously collected consumption histories of program participants.
- Consumer reports compiled from recent publications are used to estimate costs and life expectancy of appliances.
- Where limited data is available, HUD recommends the latest version of the HUD Utility Schedule Model. This version has additional allowances for electric heat pumps, electric and gas standard fees, and A/C.
- Created a utility allowance for reasonable accommodations for medical expenses.
The utility allowance schedule has been adjusted using the latest HUD projections where needed. The new rates show slight decreases in electric and gas rates and increases in water and sewer rates. The use of this schedule provides average utility costs to participants who pay their own utility costs and streamlines efficiency in calculating rent subsidies using standard rates under the Housing Choice Voucher program, Public Housing and other affordable housing projects that access these schedules throughout the county.
The HUD 52667 Allowances for Tenant Furnished Utilities are broken down by basic utilities subsidized by HUD. The schedules are broken down for High Rise Apartments, Low Rise Apartments, Rowhouse/Townhome/Duplex, Mobile Home, and Single Family.
Utilities are included in gross rents and in establishing our payment standards. This schedule is used in determining rent subsidies when a tenant is responsible for the cost of some or all the utilities. These allowances are based on typical costs of utilities paid by energy-conservative households that occupy housing by size and type in a community. The PHA must use the appropriate utility allowance for the lesser of the size of dwelling unit actually leased by the family or the family unit size as determined under the PHA subsidy standards.
For example: a 2BR single-family detached home paying electric heating $107, cooking $12, other electricity $62, water heater electricity $35, and electric standard charge $19 would have an estimated utility allowance of $235.00. If we have a 2BR unit that rents for $850, add on the estimated utility of $235, we have a gross rent of $1,085. Households pay approximately 30% of income towards this gross rent.
The requested action is to review and adopt the 2025 utility allowance schedules as presented.