TITLE
Recommendation to adopt revised Standard Utility Allowance Schedules; and
Adopt revised Energy Efficiency-Based 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 March 2015, the Housing Authority commissioned 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 two 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 2014 and 2015, 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 utility allowances will decrease, on average, for our Standard Utility Allowance Schedules, and will increase slightly for our Energy Efficiency Based Utility Allowance Schedules. These changes will actually result in a net decrease in the costs to the Housing Assistance Payment (HAP) by less than one percent annually. Copies of the current and proposed Utility Allowance Schedules are attached in Exhibits A and B.
This matter was reviewed by Deputy City Attorney Linda Vu and by Budget Management Officer Victoria B...
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