A Utility Allowance adjustment is required annually in conjunction with the property’s contract renewal or rent adjustment. HUD Notice 2015-04 outlines the methodology for submission.

Utility Analysis Submission Guidelines

• Owners must submit a **baseline** for each bedroom size **every three years**.
• For the following two years, utility allowances can be **adjusted using the Utility Adjustment Factor (UAF)**.

Minimum Sample Size for Baseline Submission

Additional Submission Guidelines

• Owners **must request utility data** from tenants or utility companies for each bedroom size.
• Sampling should be **performed at the property level** if buildings are **identical** or **similar**.
• For **non-identical buildings**, sampling **must be done per bedroom size per building**.

Excluded Sample Units

• Units with **reasonable accommodation increased U/A**.
• Units **vacant for two or more months**.
• Units receiving a **flat utility rate** under a low-income program.

Utility Allowance Increase Request

Owners must submit a request when **utility rates increase by 10% or more** from the **most recently approved utility allowance**.

• Submit **utility bills** from the month before and after the rate change, OR
• Provide **verification of the increase** from the utility provider.

Notice to Tenants

Whenever an adjustment **results in a decrease**, owners must notify tenants in accordance with Part 245.

For the first year under **HUD Notice 2015-04**, **any decrease of 15% or $10 or more may be phased**.

Further Guidance

• HUD Notice 2015-04
• Sample Release of Tenant Utility Information
• Sample Utility Analysis Submission Workbook
• Sample 30-day tenant notice for UA decrease
• Owner Certification of Compliance with Tenant Comment Procedures