HUD HCV Guidebook § 4

HUD encourages PHAs to provide a utility allowance schedule to families. The schedule can help the family
calculate the estimated cost for tenant-paid utilities, and compare gross rents for various units with local
payment standards and personal affordability limits.

When a family has located a unit and submitted a request for tenancy approval (form HUD-52517) the PHA
can calculate the actual utility allowance for the family.

As illustrated in the example 3 on the following page, section 11 of the Request for Tenancy Approval
indicates tenant-paid utilities and the utilities the owner will cover. Using the information from the Request for
Tenancy Approval and the utility allowance schedule the PHA can compute the appropriate utility allowance.

20 24 CFR § 982.517(a) and 982.517(b)(2)(ii)
21 24 CFR 982.517

Example 3: Section 11 of Request for Tenancy Approval

Because the allowances for utilities and services are subject to change over time, regulations require the
utility allowance must22 be recalculated at reexamination. Whether this takes place at the first interim
reexamination after the PHA revises its utility allowance schedule or at the first regular (annual) reexamination
after the utility allowance schedule revision depends upon PHA policy. Industry practice is to apply the new,
revised utility allowance schedule at the family’s annual reexamination.