This notice provides instruction to owners and management agents (O/As) for completing the utility analysis required at the time of the annual or special adjustment of contract rents and when a utility rate change results in a cumulative increase of 10 percent or more from the most recently approved utility allowance.
A significant new development, properties undergoing new construction or substantial rehabilitation may establish initial utility allowances for new or rehabilitated units based on analysis completed at underwriting though an energy consumption model, including an HFA-approved utility allowance calculator. This option is based on guidance established by the Internal
Revenue Service under Section 42 Utility Allowance Regulations Update.
The notice includes expanded options for owners of HUD-assisted properties to do use an energy consumption model