HUD provides utility allowances to properties receiving subsidy assistance where all or some utilities are paid directly by the residents. Utility allowances (UA) represent the owner’s best estimate of the average monthly utility cost of an energy-conscious resident based on an analysis. To determine the UA for the property, owners are required to perform a yearly analysis of their project’s utilities.

Housing Notice 2015-04, entitled “Methodology for Completing a Multifamily Housing Utility Analysis”, was issued on June 22, 2015. Please select and read the below memorandum for a summary of the important changes outlined in the Notice. Owner/agents must perform their upcoming utility analysis using the methodology outlined in the Notice for properties with contract anniversary dates that fall after 180 days of publication of this Notice, December 19, 2015.

The recently published Housing Notice can be found on HUDClips under Notice 15-04 <http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/notices/hsg> . The memo is also available on HUD’s Multifamily Homepage under What’s New<http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh> . The FY 2015 UAFs table can be found on DATA SETS http://www.huduser.org/portal/datasets/muaf.html. The recently published Frequently Asked Questions for the Housing Notice 2015-04 can be found here: http://portal.hud.gov/hudportal/documents/huddoc?id=UtilityAnalysis.pdf

The 24 CFR 245.405(a) and 245.410 requires the owner to serve a 30 day notice to the residents of a proposed decrease in the utility allowance.

*Remember that the OCAF factors are published around November for properties with contracts and funding expiration dates on or after February 11th of each year.*

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