| However, the Owner failed to submit the request
to the Department for review until September 15, 2022. Although the
Notice to the Residents was dated the date of the letter from the
utility provider, the Department was not provided the full 90 days
for review. As a result, the allowance cannot be implemented by the
owner until approved by the Department.
(3) Effective dates. If the Owner uses the methodology
as described in subsection (c)(3)(A) of this section related to Methods,
no posting is required, and 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 published effective date.
(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. With the exception
of MFDL developments, if an Owner fails to submit for annual review
during the calendar year, the Development's Utility Allowance will
default to the applicable PHA allowance. If the Development is located
in an area that does not have a PHA, the Development fails to have
a properly calculated Utility Allowance. The Utility Allowance for
MFDL Developments that fail to submit for annual review will be calculated
pursuant to subsection (d) of this section.
(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. With the
exception of MFDL developments, if an Owner fails to submit for annual
review during the calendar year, the Development's Utility Allowance
will default to the applicable PHA allowance. If the Development is
located in an area that does not have a PHA, the Development fails
to have a properly calculated Utility Allowance. The Utility Allowance
for MFDL Developments that fail to submit for annual review will be
calculated using the HUD Utility Model Schedule.
(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 MFDL
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. HOME-ARP
may use subsection (c)(3)(A) of this section.
(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 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. If using the
method described in subsection (c)(3)(B), (C), (D), or (E), applicants
must submit their utility allowance to the Compliance Division prior
to full application submission.
(A) Upon request, the Compliance Division will calculate
or review an allowance for application. The request must be submitted
to the Compliance Division no later than 21 days, but no earlier than
90 days, from when the application is due.
(B) Example 7: An application for a 9% HTC is due March
1, 2022. The applicant would like Department approval to use an alternative
method by February 15, 2022. The request must be submitted to the
Compliance Division no later than January 25, 2022, three weeks before
February 15, 2022.
(C) Example 8: An Applicant intends to submit an application
for a 4% HTC with Tax Exempt Bonds on August 11, 2022, 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, 2022, (90 days prior to August 11, 2022) and no later than
July 21, 2022, (21 days prior to August 11, 2022).
(D) Any requests for new resources (either additional
funds or tax credits) on a Development with an existing Department
LURA must use the method that is in effect on the existing Development.
If the Owner wishes to change or if for an MFDL application is required
to change the methods for the purposes of the application, a request
for the existing Development must first be submitted to the Compliance
Division for approval.
(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.
Cont'd... |
