HUD HCV Guidebook § 3

A PHA must5 to establish and maintain a utility allowance schedule for tenant-paid utilities, tenant-supplied
refrigerators and ranges, and other tenant-paid housing services (such as trash collection). The utility
allowance schedule must6 include the utilities and services necessary to provide housing that complies with
HQS. In areas where most housing units provide central air conditioning or wiring for tenant-installed air
conditioners, the utility allowance schedule must7 provide an allowance for tenant-paid air conditioning costs.
The utility allowance schedule must not8 include allowances for personal expenses, such as telephone,

1 Form HUD-52641, Page 5, Part B Section 5 c.
2 24 CFR § 982.308(g)(1)
3 24 CFR § 982.308(g)(2)(i)
4 Form HUD-52646
5 24 CFR 982.571(a)
6 24 CFR § 982.517(b)(2)(i)
7 24 CFR § 982.517 (b)(2)(ii)
8 24 CFR 982.571(a)

cable/satellite TV, or wireless internet. The PHA must9 classify utilities and other housing services in the
following general categories:

       Space heating;
       Cooking;
       Other electric;
       Air conditioning;
       Water heating;
       Water;
       Sewer;
       Trash collection;
       Tenant-provided range /microwave;
       Tenant-provided refrigerator; and
       Other specified housing services.

The cost of each utility and housing service category must10 be stated separately. For each category, the
schedule must11 take into consideration the type and size of the unit, and the energy source.

       Unit Types. PHAs must12 have utility allowances for common structure types in their jurisdiction, e.g.
        garden/low-rise apartments, high-rise apartments, row houses or town houses, single family detached
        units, duplexes, and manufactured homes. Utility usage often depends on the unit’s number of shared
        walls.

       Unit Sizes. Are classified by number of bedrooms. When calculating the utility allowance for a family,
        the PHA must13 use the lower of the unit size leased or the family’s voucher size determined under the
        PHA’s subsidy standards.

       Fuel Type. Refers to the type of fuel used. When establishing utility allowances for space heating,
        cooking, and water heating, PHA utility allowance schedule’s often include allowances for each type of
        utility or fuel commonly used in the community. Fuel types include natural gas, bottle gas, oil/electric,
        and coal/other.

If the utility or fuel is available from more than one supplier, the PHA can determine an average cost across all
suppliers, or can use different allowances for utilities or fuels purchased from different suppliers. The PHA’s
initial and revised utility allowance schedule must14 be submitted to HUD. The PHA must15 do so by
submitting the utility allowance schedule directly to their local HUD field office on Form HUD-52667,
Allowances for Tenant Furnished Utilities and Other Services.

9 24 CFR § 982.517(b)(2)(ii)
10 24 CFR § 982.517(b)(3)
11 24 CFR § 982.517(b)(3)
12 24 CFR § 982.517(b)(3)
13 24 CFR § 982.517(d)(1)
14 24 CFR § 982.517(a)(2)
15 24 CFR § 982.517(b)(4)

The PHA must16 maintain supporting documentation used in determining both the initial allowances and any
revisions. Such documentation might include the consumption estimates that are the basis of the dollar
allowances, letters or rate schedules from local utility companies, as well as worksheets used to develop the
schedule.

If directed by HUD, the PHA must17 revise the utility allowance schedule to correct any errors, or as necessary
to update the schedule to reflect changes in utility costs.