| (a) Purpose. The purpose of this section is to provide
the guidelines for calculating a Utility Allowance under the Department's
multifamily programs. The Department will cite noncompliance and/or
not approve a Utility Allowance if it is not calculated in accordance
with this section. Owners are required to comply with the provisions
of this section as well as any existing federal or state program guidance.
(b) Definitions. The following words and terms, when
used in this section, shall have the following meanings, unless the
context clearly indicates otherwise. Other capitalized terms used
in this section herein have the meanings assigned in Chapters 1, 2,
10, 11, and 12 of this title.
(1) Building Type. The HUD Office of Public and Indian
Housing (PIH) characterizes building and unit configurations for HUD
programs. The Department will defer to the guidance provided by HUD
found at: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11608.pdf
(or successor Uniform Resource Locator (URL)) when making determinations
regarding the appropriate building type(s) at a Development.
(2) Power to Choose. The Public Utility Commission
of Texas database of retail electric providers in the areas of the
state where the sale of electricity is open to retail competition:
http://www.powertochoose.org/ (or successor URL). In areas of the
state where electric service is deregulated, the Department will verify
the availability of residential service directly with the Utility
Provider. If the Utility Provider is not listed as a provider of residential
service in the Development's ZIP code for an area that is deregulated,
the request will not be approved.
(3) Component Charges. The actual cost associated with
the billing of a residential utility. Each Utility Provider may publish
specific utility service information in varying formats depending
on the service area. Such costs include, but are not limited to:
(A) Rate(s). Any cost incurred for the actual unit
of measure for the utility (e.g., base cost per kilowatt hour for
electricity, TDU delivery charges, rate per gallon of water, etc.);
(B) Fees. The cost associated with a residential utility
that is incurred regardless of the amount of the utility the household
consumes (e.g., Customer Charge);
(C) Taxes. Taxes for electricity and gas are regulated
by the Texas Comptroller of Public Accounts and can be found http://comptroller.texas.gov/
(or successor URL). Local Utility Providers have control of the tax
structure related to water, sewer and trash. To identify if taxes
are imposed for these utilities, obtain documentation directly from
the Utility Provider.
(4) Multifamily Direct Loan (MFDL). Funds provided
through the HOME, NSP, NHTF, TCAP RF, HOME-ARP, or other program available
through the Department, local political subdivision, or administrating
agency for multifamily development that require a Utility Allowance.
MFDLs may also include deferred forgivable loans or other similar
direct funding, regardless if it is required to be repaid. Housing
Tax Credits, Tax Exempt Bonds, and Project Based Vouchers are not
MFDLs.
(5) Renewable Source. Energy produced from energy property
described in IRC §48 or IRC §45(d)(1) through (4), (6),
(9), or (11). The manner in which a resident is billed is limited
to the rate at which the local Utility Provider would have charged
the residents for the utility if that entity had provided it to them,
and as may be further limited by the Texas Utilities Code or by regulation.
(6) Submetered Utility. A utility purchased from or
through a local Utility Provider by the building Owner where the resident
is billed directly by Owner of the building or to a third party billing
company and the utility is:
(A) Based on the residents' actual consumption of that
utility and not an allocation method or Ratio Utility Billing System
(RUBS); and
(B) The rate at which the utility is billed does not
exceed the rate incurred by the building Owner for that utility.
(7) Utility Allowance. An estimate of the expected
monthly cost of any utility for which a resident is financially responsible,
other than telephone, cable television, or internet. A utility allowance
is considered implemented once the Unit Status Report is updated and
rents are restricted.
(A) For HTC, TCAP, Exchange buildings, Bonds, and THTF
include:
(i) Utilities paid by the resident directly to the
Utility Provider;
(ii) Submetered Utilities; and
(iii) Renewable Source Utilities.
(B) For a Development with an MFDL, unless otherwise
prescribed in the program's Regulatory Agreement, include all utilities
regardless of how they are paid.
(8) Utility Provider. The company that provides residential
utility service (e.g., electric, gas, water, wastewater, and/or trash)
to the buildings.
(c) Methods. The following options are available to
establish a Utility Allowance for all programs except most Developments
funded with MFDL funds, which are addressed in subsection (d) of this
section. HOME-ARP may use methods in subsection (c) or subsection
(d), but cannot combine two methods in one building.
(1) Rural Housing Services (RHS) buildings or buildings
with RHS assisted residents. The applicable Utility Allowance for
the Development will be determined under the method prescribed by
the RHS (or successor agency). No other utility method described in
this section can be used by RHS buildings or buildings with RHS assisted
residents.
(2) HUD-Regulated buildings layered with any Department
program. If neither the building nor any resident in the building
receives RHS rental assistance payments, and the rents and the Utility
Allowances of the building are regulated by HUD (HUD-regulated building),
the applicable Utility Allowance for all rent restricted Units in
the building is the applicable HUD Utility Allowance. No other utility
method described in this section can be used by HUD-regulated buildings.
Unless further guidance is received from the U.S. Department of Treasury
or the Internal Revenue Service (IRS), the Department considers Developments
awarded an MFDL (e.g., HOME) to be HUD-Regulated buildings.
(3) Other Buildings. For all other rent-restricted
Units, Development Owners must use one of the methods described in
subparagraphs (A) - (E) of this paragraph:
(A) Public Housing Authority (PHA). The Utility Allowance
established by the applicable PHA for the Housing Choice Voucher Program.
The Department will utilize the Texas Local Government Code, Chapter
392 to determine which PHA is the most applicable to the Development.
(i) If the PHA publishes different schedules based
on Building Type, the Owner is responsible for implementing the correct
schedule based on the Development's Building Type(s). Example 614(1):
The applicable PHA publishes a separate Utility Allowance schedule
for Apartments (5+ units), one for Duplex/Townhomes and another for
Single Family Homes. The Development consists of 20 buildings, 10
of which are Apartments (5+ units) and the other 10 buildings are
Duplexes. The Owner must use the correct schedule for each Building
Type.
(ii) In the event the PHA publishes a Utility Allowance
schedule specifically for energy efficient units, and the Owner desires
to use such a schedule, the Owner must demonstrate that the building(s)
meet the housing authority's specifications for energy efficiency
once every five years.
(iii) If the applicable PHA allowance lists flat fees
for any utility, those flat fees must be included in the calculation
of the Utility Allowance if the resident is responsible for that utility.
(iv) If the individual components of a Utility Allowance
are not in whole number format, the correct way to calculate the total
allowance is to add each amount and then round the total up to the
next whole dollar. Example (2): Electric cooking is $8.63, Electric
Heating is $5.27, Other Electric is $24.39, Water and Sewer is $15.
The Utility Allowance in this example is $54.00. If the PHA schedule
reflects a rounded amount, then the PHA method of rounding should
be used.
(v) If an Owner chooses to implement a methodology
as described in subparagraph (B), (C), (D), or (E) of this paragraph,
for Units occupied by Section 8 voucher holders, the Utility Allowance
remains the applicable PHA Utility Allowance established by the PHA
from which the household's voucher is received.
(vi) If the Development is located in an area that
does not have a municipal, county, or regional housing authority that
publishes a Utility Allowance schedule for the Housing Choice Voucher
Program, Owners must select an alternative methodology, unless the
building(s) is located in the published Housing Choice Voucher service
area of:
(I) A Council of Government created under Texas Local
Government Code, Chapter 303, that operates a Housing Choice Voucher
Program;
(II) The Department's Housing Choice Voucher Program;
or
(III) Another PHA which publishes a separate utility
allowance schedule specific to the Development's location.
(B) Written Local Estimate. The estimate must come
from the local Utility Provider, be signed by the Utility Provider
representative, and specifically include all Component Charges for
providing the utility service.
(C) HUD Utility Schedule Model. The HUD Utility Schedule
Model and related resources can be found at http://www.huduser.gov/portal/resources/utilallowance.html
(or successor URL). Each item on the schedule must be displayed out
two decimal places. The total allowance must be rounded up to the
next whole dollar amount. The Component Charges used can be no older
than those in effect 60 days prior to the beginning of the 90 day
period described in subsection (f)(3) of this section related to Effective
Dates.
(i) The allowance must be calculated using the MS Excel
version available at http://www.huduser.org/portal/resources/utilmodel.html
(or successor URL), as updated from time to time, with no changes
or adjustments made other than entry of the required information needed
to complete the model.
(ii) In the event that the zip code for the Development
is not listed in "Location" tab of the workbook, the Department will
default to the PHA code from the PHA that is closest in distance to
the Development using online mapping tolls (e.g. Google Maps). If
neither the zip code nor the PHA code is listed, a zip code that borders
the Development's zip code will be used The Department will obtain
the PHA codes from https://www.hud.gov/sites/dfiles/PIH/documents/PHA_Contact_Report_TX.pdf
(or successor Uniform Resource Locator (URL)).
(iii) Green Discount. If the Owner elects any of the
Green Discount options for a Development, documentation to evidence
that the units and the buildings meet the Green Discount standard
as prescribed in the model is required for the initial approval and
every subsequent annual review.
(I) In the event the allowance is being calculated
for an application of Department funding (e.g., 9% Housing Tax Credits),
upon request, the Department will provide both the Green Discount
and the non-Green Discount results for application purposes.
(II) At lease up, the owner may use the utility allowance
taking into consideration the green discount if they obtain written
documentation from a qualified professional (e.g., a qualified energy
efficiency consultant) indicating that the Units and buildings will
meet the qualifications for the Green Discount within six months of
the placed in service date or for MFDL within six months of the construction
completion date.
(iv) Do not take into consideration any costs (e.g.,
penalty) or credits that a consumer would incur because of their actual
usage. Example 614(3): The Electric Fact Label for ABC Electric Utility
Provider provides a Credit Line of $40 per billing cycle that is applied
to the bill when the usage is greater than 999 kWh and less than 2000
kWh. Example 614(4): A monthly minimum usage fee of $9.95 is applied
when the usage is less than 1000 kWh in the billing cycle. When calculating
the allowance, disregard these types of costs or credits.
(D) Energy Consumption Model. The model must be calculated
by a properly licensed mechanical engineer. The license of the engineer
must be submitted along with the model. The individual must not be
related to the Owner within the meaning of §267(b) or §707(b)
of the Code. The utility consumption estimate must, at minimum, take
into consideration specific factors that include, but are not limited
to, Unit size, building type and orientation, design and materials,
mechanical systems, appliances, characteristics of building location,
and available historical data. Component Charges used must be no older
than those in effect 60 days prior to the beginning of the 90 day
period described in subsection (f)(3) of this section related to Effective
Dates; and
(E) An allowance based upon an average of the actual
use of similarly constructed and sized Units in the building using
actual utility usage data and Component Charges, provided that the
Development Owner has the written permission of the Department. This
methodology is referred to as the "Actual Use Method." For a Development
Owner to use the Actual Use Method they must:
(i) Provide a minimum sample size of usage data for
at least five Continuously Occupied Units of each Unit Type or 20%
of each Unit Type, whichever is greater. If there are less than five
Units of any Unit Type, data for 100% of the Unit Type must be provided;
and
Cont'd... |
