| (3) Effective dates. If the Owner uses the methodologies
as described in subsection (c)(3)(A) of this section related to Methods,
any changes to the allowance can be implemented immediately, but must
be implemented for rent due at least 90 days after the change. For
methodologies as described in subsection (c)(3)(B), (C), (D) and (E)
of this section related to Methods, the allowance cannot be implemented
until the estimate is submitted to the Department and is made available
to the residents by posting in a common area of the leasing office
at the Development. This action must be taken by the beginning of
the 90 day period in which the Owner intends to implement the Utility
Allowance. Nothing in this section prohibits an Owner from reducing
a resident's rent prior to the end of the 90 day period when the proposed
allowance would result in a gross rent issue.
Attached Graphic
(g) Requirements for Annual Review.
(1) RHS and HUD-Regulated Buildings. Owners must demonstrate
that the utility allowance has been reviewed annually and in accordance
with the RHS or HUD regulations.
(2) Buildings using the PHA Allowance. Owners are responsible
for periodically determining if the applicable PHA released an updated
schedule to ensure timely implementation. When the allowance changes
or a new allowance is made available by the PHA, it can be implemented
immediately, but must be implemented for rent due 90 days after the
PHA releases an updated scheduled.
(3) Written Local Estimate, HUD Utility Model Schedule
and Energy Consumption Model. Owners must update the allowance once
a calendar year. The update and all back up documentation required
by the method must be submitted to the Department no later than October
1st of each year. However, Owners are encouraged to submit prior to
the deadline to ensure the Department has time to review. At the same
time the request is submitted to the Department, the Owner must post,
at the Development, the Utility Allowance estimate in a common area
of the leasing office where such notice is unobstructed and visible
in plain sight. The Department will review the request for compliance
with all applicable requirements and reasonableness. If, in comparison
to other approved Utility Allowances for properties of similar size,
construction and population in the same geographic area, the allowance
does not appear reasonable or appears understated, the Department
may require additional support and/or deny the request.
(4) Actual Use Method. Owners must update the allowance
once a calendar year. The update and all back up documentation required
by the method must be submitted to the Department no later than August
1st of each year. However, Owners are encouraged to submit prior to
the deadline to ensure the Department has time to review.
(h) For Owners participating in the Department's Section
811 Project Rental Assistance (PRA) Program, the Department will establish
the Utility Allowance for all 811 units. On an annual basis, the Department
will calculate a Utility Allowance and provide the Owner with a property-specific
rent schedule containing the approved Utility Allowance. The allowance
listed on the rent schedule only applies to 811 PRA units, not the
entire building, and is the only allowance approved for use on 811
PRA units.
(i) Combining Methods. In general, Owners may combine
any methodology described in this section for each utility service
type paid directly by the resident and not by or through the Owner
of the building (e.g., electric, gas). For example, if residents are
responsible for electricity and gas, an Owner may use the appropriate
PHA allowance to determine the gas portion of the allowance and use
the Actual Use Method to determine the electric portion of the allowance.
RHS and certain HUD-Regulated buildings (e.g., buildings with HOME/
TCAP RF funds) are not allowed to combine methodologies.
(j) The Owner shall maintain and make available for
inspection by the resident all documentation, including, but not limited
to, the data, underlying assumptions and methodology that was used
to calculate the allowance. Records shall be made available at the
resident manager's office during reasonable business hours or, if
there is no resident manager, at the dwelling Unit of the resident
at the convenience of both the Owner and resident.
(k) Utility Allowances for Applications.
(1) If the application includes RHS assisted buildings
or tenants, the utility allowance is prescribed by the RHS program.
No other method is allowed.
(2) If the application includes HUD-Regulated buildings
for HUD programs other than an MFDL program the applicable Utility
Allowance for all rent restricted Units in the building is the applicable
HUD Utility Allowance. No other utility method is allowed.
(3) If the application includes MFDL funds from the
Department, Applicants may calculate the utility allowance in accordance
with subsection (c)(3)(B), (C), (D) or (E) of this section related
to Methods. Applicants must submit their utility allowance to the
Compliance Division prior to full application submission. In the event
that the application has an MFDL from the Department, and receives
federal funds from a unit of local government, the Department will
require the use of the allowance approved by the Department.
(4) If the application includes federal funds from
a unit of local government but no MFDL from the Department, Applicants
are required to request in writing the Utility Allowance from the
awarding jurisdiction. If the awarding jurisdiction does not respond
or requests the Department to calculate the allowance, the Department
will establish the initial Utility Allowance in accordance with subsection
(d)(3) of this section.
(5) For all other applications, Applicants may calculate
the utility allowance in accordance with subsection (c)(3)(A), (B),
(C), (D), or (E) of this section related to Methods.
(A) Upon request, the Compliance Division will calculate
or review an allowance within 21 days but no earlier than 90 days
from when the application is due.
(B) Example 614(8): An application for a 9% HTC is
due March 1, 2017. The applicant would like Department approval to
use an alternative method by February 15, 2017. The request must be
submitted to the Compliance Division no later than January 25, 2017,
three weeks before February 15, 2017.
(C) Example 614(9): An Applicant intends to submit
an application for a 4% HTC with Tax Exempt Bonds on August 11, 2017,
and would like to use an alternative method. Because approval is needed
prior to application submission, the request can be submitted no earlier
than May 13, 2017, (90 days prior to August 11, 2017) and no later
than July 21, 2017, (21 days prior to August 11, 2017).
(6) All Utility Allowance requests related to applications
of funding must:
(A) Be submitted directly to ua_application@tdhca.state.tx.us.
Requests not submitted to this email address will not be recognized.
(B) Include the "Utility Allowance Questionnaire for
Applications" along with all required back up based on the method.
(l) If Owners want to change to a utility allowance
other than what was used for underwriting the Owner must submit Utility
Allowance documentation for Department approval, at minimum, 90 days
prior to the commencement of leasing activities. The Owner is not
required to review the utility allowances, or implement new utility
allowances, until the building has achieved 90% occupancy for a period
of 90 consecutive days or the end of the first year of the Credit
Period (if applicable), whichever is earlier.
(m) The Department reserves the right to outsource
to a third party the review and approval of all or any Utility Allowance
requests to use the Energy Consumption Model or when review requires
the use of expertise outside the resources of the Department. In accordance
with Treasury Regulation §1.42-10(c) any costs associated with
the review and approval shall be paid by the Owner.
(n) All requests described in this subsection must
be complete and uploaded directly to the Development's CMTS account
using the "Utility Allowance Documents" in the type field and "Utility
Allowance" as the TDHCA Contact. The Department will not be able to
approve requests that are incomplete and/or are not submitted correctly.
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