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 an appropriate sample of utility allowance
recommendation 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 there records have been
unsuccessful he may use actual utility bill from the tenants, used 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. Only those properties where tenants pay a portion of
the utilities. These properties have utility allowances and must submit an
analysis.
What does NTHDC require in a utility analysis submission?
An owner request for either an increase or decrease for
each unit type (1-bedroom, 2-bedroom). This request should be supported by
the previous year's utility bills for each unit type. A representative
sample would include utility bills for 5% of each unit type or for at least
three units of each type.
Where can I find more information about utility allowances?
See HUD Handbook 4350.1, Chapter 7.
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