24 C.F.R. § 880.610
§ 880.610 Adjustment of utility allowances. (24 CFR Part 880)
Operative Text
In connection with annual and special adjustments of contract rents, the owner must submit an analysis of the project's Utility Allowances. Such data as changes in utility rates and other facts affecting utility consumption should be provided as part of this analysis to permit appropriate adjustments in the Utility Allowances. In addition, when approval of a utility rate change would result in a cumulative increase of 10 percent or more in the most recently approved Utility Allowances, the project owner must advise the contract administrator and request approval of new Utility Allowances. Whenever a Utility Allowance for a unit is adjusted, the owner will promptly notify affected families and make a corresponding adjustment of the tenant rent and the amount of the housing assistance payment for the unit.
Under 24 CFR Part 880 § 880.610, project owners participating in HUD-assisted housing programs are required to analyze and report on Utility Allowances whenever contract rents are adjusted annually or on a special basis. If cumulative utility rate changes push the approved Utility Allowances up by 10 percent or more, the owner must notify the contract administrator and seek approval for revised allowances. Once any Utility Allowance for a unit is updated, the tenant's share of rent and the corresponding housing assistance payment must both be adjusted promptly, and affected families must be notified.
Plain English — not legal advice.
Operators of HUD-assisted projects subject to 24 CFR Part 880 § 880.610 generally maintain ongoing records of utility rate changes and consumption data so that a complete analysis can be submitted alongside each annual or special contract rent adjustment request. Compliant operators monitor cumulative utility rate increases and, upon reaching the 10-percent threshold in approved Utility Allowances, proactively contact the contract administrator to seek approval of revised allowances before the next scheduled adjustment cycle. Once new Utility Allowances are approved, operators promptly issue written notices to affected households and update both the tenant rent and the housing assistance payment amounts to reflect the change.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 24 CFR Part 880 § 880.610, tenants in HUD-assisted projects have a right to timely written notice whenever the Utility Allowance for their unit changes, and any such change must be accompanied by a corresponding adjustment to the rent they owe and the housing assistance payment covering their unit. If a tenant believes their Utility Allowance has not been properly updated or that required notifications were not provided, they may raise this as a concern with the project's contract administrator or with the local HUD field office. Tenant-rights organizations and HUD's formal complaint process are also available resources for understanding how this provision applies to a particular housing program.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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