| (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.
(B) Include the "Utility Allowance Questionnaire for
Applications" along with all required back up based on the method.
If back-up is not submitted the Utility Allowance will be calculated
using the HUD Utility Schedule Model as described in subsection (d)(3)
of this section.
(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. Once a request to change
the utility allowance is approved or implemented, the utility allowance
used at underwriting is no longer valid.
(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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