HUD HCV Guidebook § 3.4

The amount of the utility reimbursement is the amount by which the HAP exceeds the rent to the
owner. When there is a utility reimbursement, the PHA pays the full amount of the rent to the owner
and sends the utility reimbursement either to the family or the utility company. If the PHA elects to

pay the utility supplier directly, the PHA must24 notify the family of the amount paid to the utility
supplier.

PHAs are allowed to make utility reimbursement payments quarterly, rather than monthly, if the total
quarterly reimbursement payment due to a family is equal to or less than $45 per quarter. PHAs
may make reimbursement payments retroactively or prospectively. A PHA that chooses to make
reimbursement payments retroactively, must permit a family to request a hardship exemption. If a
family receives a hardship exemption, then the PHA may either reimburse the family on a monthly
basis or it may make prospective payments to the family, on a quarterly basis.

Upon admission to the program or at recertification, the staff person completing Form HUD-50058
will note whether the utility reimbursement is $15 per month or less. If it is, then the PHA must25
inform the family whether reimbursement will be retroactive or prospective on a quarterly basis. If
the PHA’s policy is to reimburse retroactively, then the PHA must also inform the family that they may
request a hardship exemption. If the family requests and receives a hardship exemption, then the
PHA may either reimburse the family on a monthly basis or it may make prospective payments on a
quarterly basis.

Example 12 shows a sample utility reimbursement calculation for when the tenant pays some of the
utilities.

Example 12: Calculating Family Rent to
                           Owner When Family Pays Some or All
                           Utilities
                           Rent to owner                        $425
                           plus utility allowance       +       $150
                           Gross rent                   =       $575
                           Family share                 =       $100
                           Family rent to owner         =       $0
                           Utility Allowance            =       $50
                           reimbursement to family