HUD HCV Guidebook § 3.4
Utility Reimbursement (HUD HCV Guidebook)
Operative Text
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 familyUnder HUD Housing Choice Voucher Guidebook § 3.4, when a voucher family's Housing Assistance Payment (HAP) exceeds the rent owed to the owner, the difference is returned to the family as a utility reimbursement. The Public Housing Authority (PHA) pays the owner's full rent and then directs the remaining amount either to the family or directly to the utility company. If payments are made quarterly rather than monthly, specific thresholds and hardship exemption procedures govern how and when families receive those funds.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 3.4, the PHA—not the owner—is responsible for calculating and distributing utility reimbursements, so the owner's role in this process is limited. Compliant owners ensure their rent amounts and utility arrangements are accurately reported so the PHA can correctly determine whether a reimbursement is owed. Owners who receive direct utility payments on behalf of a family should be aware that the PHA is required to notify the family of any amounts paid directly to a utility supplier.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 3.4 establishes that when your HAP exceeds the rent charged by your landlord, you are entitled to receive the difference as a utility reimbursement, either directly or through payment to your utility company. If your PHA uses a retroactive payment schedule, you have the right to request a hardship exemption, which can result in monthly payments or prospective quarterly payments instead. Tenants who believe their reimbursement has been miscalculated or withheld may raise the issue with their PHA, consult a local tenant-rights organization, or contact the U.S. Department of Housing and Urban Development for guidance.
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 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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