TITLE
Recommendation to adopt the revised Standard Utility Allowance Schedules; and adopt the revised Energy Efficiency-Base Utility Allowance Schedules for new construction projects. (Citywide)
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) requires Public Housing Agencies to annually review and amend, if necessary, their Utility Allowance Schedules if there is a 10 percent change in utility rates. In December 2012, the Housing Authority engaged the Nelrod Company to review and assess: 1) the Standard Utility Allowance Schedules which are used when calculating the tenant portion that each assisted household must pay for utilities; and 2) the Energy Efficient Utility Allowance Schedules which are used to calculate the costs of tenant-paid utilities in new residential construction projects that meet certain energy-efficiency criteria.
During the review by the Nelrod Company, it was found that in comparing the utility allowance schedules from last year to this year, there was a change of more than 10 percent in several of the utilities, and therefore, updated/revised Utility Allowance Schedules need to be implemented.
Also, it should be noted that the percentage change in the utility comparison
between 2011 and 2012 as reviewed by the Nelrod Company was based on
calculations required by HUD and the percentage rate changes do not
necessarily correlate directly to a percentage change a person would pay
for utilities.
Overall, the monthly utility allowances will be decreased by approximately $2.50, which is expected to reduce Housing Assistance Program (HAP) costs by approximately one percent, or $190,000 annually. However, any savings in this category may be reallocated by the grantor for other program use.
This matter was reviewed by Deputy City Attorney Linda Vu on February 25, 2013 and by Budget Management Officer Victoria Bell on February 27, 2013.
TIMING CONSIDERATIONS
The Housing Authority would like to implement the new uti...
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