TITLE
Recommendation to adopt Utility Allowances for Affordable Rental Housing Programs, effective January 1, 2022. (Citywide)
DISCUSSION
The U.S. Department of Housing and Urban Development (HUD) requires all Public Housing Authorities to establish utility allowances, to annually review and, if necessary, amend their Utility Allowance Schedules if there is a 1 O percent or more change in utility rates. Most publicly subsidized affordable rental housing programs require the application of the local housing authority's adopted utility allowances when determining the total rent charged for the subsidized unit. The established utility allowances are required deductions from the gross rent that tenants receive for the utilities they pay. The longstanding concept behind utility allowances is that "shelter rent" is to include rent and basic utilities. The establishment of utility allowances has always applied to HUD's Public Housing, Housing Choice Voucher/Section 8, and HOME funded rental programs, and is often extended to other local, State, and federal housing programs such as the Low Income Housing Tax Credit (LIHTC) program.
Staff have reviewed the proposed new schedules as prepared by The Nelrod Company and recommend increases to the Housing Authority of the City of Long Beach's (HACLB) current utility allowance schedule to be effective January 1, 2022 (Attachment). Utility allowances for electricity, natural gas, and water have all increased over the past year, only sewer rates remained constant and trash collection charges decreased. Residential baseline increases are as follows: electricity +49 percent, natural gas +61 percent, water +18 percent, and trash collection -16 percent.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on September 8, 2021 and by Budget Analysis Officer Greg Sorensen on September 21, 2021.
TIMING CONSIDERATIONS
HACLB action on this item is requested on October 12, 2021, to implement the new utility
allowance...
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