KHC FAQs

Best practice is to send them to pbcaspecialclaims@kyhousing.org

All claims must be submitted 180 days from the date the unit was ready for occupancy.

All approved claims must be requested on the voucher 90 days from the date approved claim is received.

If the concern was addressed with management first and not being resolved, then the best practice is to send all tenant concerns to pbcatenantconcerns@kyhousing.org 

We close all concerns once we receive confirmation from the tenant and completed work orders from management are signed and dated by both parties.

We will follow up weekly with management to make sure progress is being made.

No KHC can not come to the property and inspect per your request.

The implementation schedule is based on the contract anniversary date. If that date falls within the first 180 days after the publication of the notice (6/22/15), then the Owner/Agent (O/A) has a choice—s/he can choose to follow the new methodology or follow the existing methodology. If the contract anniversary date is more than 180 days after the publication of the notice, s/he must follow the methodology in the notice.

The O/A shall submit backup information that demonstrates how s/he calculated the new utility allowance(s). HUD/CA has discretion to determine the documentation needed to support the utility allowances.

Some examples of backup information include:

1. Copies of the tenant data received from utility providers, this is typically in summary format; or
2. Copies of the printouts indicating a summary of monthly data if the tenant was able to obtain data online from their utility provider for the previous 12 months, or 10 months if the case may be; or
3. If the O/A obtained actual monthly utility bills from a tenant, the O/A may submit a spreadsheet summarizing the average of the monthly bills. Actual utility bills may be requested at the discretion of HUD/CA. These bills, regardless of whether they are provided to HUD/CA, must be retained by the owner for three years;
4. At the discretion of HUD/CA, there may be cases where a combination of the above will need to be performed.

A utility analysis should be prepared four to six months prior to the anniversary date of the contracts, with submitted data covering the prior 12-month period. Thus, at the time of contract renewal, the data used in the utility analysis to support the utility allowance would generally be no more than 18 months old.

Have the relative obtain the info, or if possible, use other units for the sample.

Get an average for the unit for the 10 months; do not use data from the partial or unoccupied months.

In years when UA baseline calculations are anticipated, make every effort to collect information for the vacating resident prior to their departure. Ten months of utility data is needed for the same unit, but a change of resident during data collection does not impact the analysis. In other words, O/As could have 5 months of utility data for one resident and 5 months for another resident in a baseline analysis. If O/As cannot obtain the information for at least 10 months, O/As should not use the unit in the sample.

O/As can use either method, or both. There may be cases in which the O/A has no choice but to combine methods.

This is not a HUD requirement, nor should any agency or HUD office impose such a requirement.

Collect the data and calculate the average in dollars and cents, and then round the resulting UA to the nearest dollar (>=.50 round up, <=.49 round down).

The owner must demonstrate that every effort has been made to obtain the required sample and to otherwise meet the requirements of the analysis. It is an owner’s responsibility to provide an analysis that follows the protocol outlined in the notice as closely as possible, recognizing that the “perfect” sample may not always be available. It will be HUD’s or the CA’s responsibility, as appropriate, to make sure that the analysis justifies the resulting UAs, with whatever compromises in the sampling were necessary to achieve that analysis. The CA, in consultation with HUD, may require the owner to complete another baseline the following year.

Smaller properties will necessarily require a proportionately larger sample size (including 100% sampling) in order to ensure statistically valid results. Management should encourage residents with medical equipment who have extraordinary utility bills to seek a reasonable accommodation for a higher utility allowance.

Even if 100% sampling is required, owners must exclude units that have not been occupied for at least 10 months. (See also question 6).

A unit should be excluded if it has been vacant for more than 2 out of 12 months; units with only 10 months of occupancy may be included.

O/As would treat them as two different unit sizes if they appear on the rent schedule that way and sample for both sizes. For example, the rent schedule may indicate both a One Bedroom Unit and then a One Bedroom Unit (Large). This indicates that the unit size is different, but the number of bedrooms is the same. It is likely that the UA is different as well. If this is the case, these unit types should be considered individually. (If the O/A is using the HUD worksheet attachment to the notice, the worksheet can be amended to include this additional unit type.)

Generally, O/As would exclude the units of residents paying a flat rate, but this rule assumes that those units are the minority of units. If most residents pay a flat rate, including them in the sampling will give O/As a sample more representative of the whole. If these units are included in the sample, document the reasons for doing so to help the CA/HUD determine if the O/A’s approach was reasonable. And if O/As include these units, calculate the average based on the flat rate, not on the usage.

The UA analysis covers only those units that receive a UA; only HUD-assisted units will be included in the analysis.

For now, the exclusion applies only to units with flat utility rates. MFH will review this policy and determine the best treatment of units receiving varying forms of subsidies. MFH welcomes O/As feedback on this issue.

No, owners may develop their own worksheets to suit their needs, as long as they provide HUD/CA with adequate documentation.

An unprotected version has been posted to HUDCLIPS. (Password is Sharkey)

No, O/As should not enter any value for the months that are vacant (do not enter $0). Or, using the unprotected version of the worksheet that is now available, change the formula so that the average is calculated on only non-zero months. If O/As have only 10 months of data, the average must be calculated on only those 10 months.

The release form included with the notice is a sample. Owner/agents may use their own release form, or a release form provided by the utility provider.

Yes. Tenants refusing to sign a release form constitutes material noncompliance with the lease agreement, as defined in the lease agreement, and repeated violations can result in termination of tenancy. Further, for properties other than 236 and 221(d)(3), not signing the release form is a violation of the regulatory obligations of the family found at 24 CFR 5.659(b)(1).

To add clarity to the requirement, owners are encouraged to include language in their House Rules advising tenants of their obligation to sign release forms and to provide any information deemed necessary in administration of the program or face possible termination. Any changes to a property’s House Rules must be done according to the procedures outlined in HUD Handbook 4350.3, REV-1 paragraph 6-9.

Yes, O/As would apply the utility rate increase to that component of the UA allowance, e.g., electric rates go up 15% so if the UA for the property comprises both electricity costs and gas costs, O/As would apply the 15% to the electricity component of the UA.

The notice indicates that when rate increases cause UAs to increase 10% or more, an owner can submit the following evidence of the change: (1) utility bills from the month prior to the rate change and the first month after, or (2) other verification of the increase from the utility provider. So, in that case, the owner isn’t looking at historical data, but actually justifying the rate increase with the most current data.

Although the notice indicates that this type of assistance must be reported as income, assistance under this specific program is excluded from income. Please see the May 20, 2014 Federal Register for the current list of federally mandated exclusions from income, here: http://www.gpo.gov/fdsys/pkg/FR-2014-05-20/pdf/2014-11688.pdf.

Multifamily Utility Allowance Factors | HUD USER

The UAF is a component of the OCAF and so will typically be published yearly when the OCAF is published.

Going forward, Utility Allowance Factors will be effective on the same date as the OCAF, which is typically February 11 of each year. Factors for 2017 will be released at the same time as the FY 2017 OCAF.

A new baseline analysis is not mandated. MFH wants owners to look closely at the results of a factor-based analysis and expect that they will make an appropriate decision about further analysis if those results appear very different from what their own paid utilities suggest (i.e., their common area utilities). This analysis does not need to be provided to the CA/HUD. The comparison is intended to have owners take a “second look” at the factor-based results. If it is suspected that special circumstances cause year- to-year fluctuations that materially differ than the utility adjustment factor, owners and CAs may consider completion of a new baseline.

Yes, the UA needs to be changed for factor-based analyses as well, whether it is an increase or a decrease.

Calculate the new UA both ways, with and without rounding. The new UA will be whichever method provides the higher UA. The table below shows two examples.

Example 1 results in a UA of $46, both with and without rounding. The UA will therefore be $46. In Example 2, the UA with rounding results in a UA of $82; without rounding, the UA is $81. The UA will therefore be $82.

First-Year Adjustment

Example 1

Example 2

Current UA

$50 (gas: $15; electricity: $35)

$75 (gas: $10; electricity: $65)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

First-year adjustment

$15 x 0.892 = $13.38$35 x 0.992 = $34.72

$10 x 1.018 = $10.18$65 x 1.039 = $67.54

New UA

$13.38 + $34.72 =$48.10New UA = $48

$10.18 + $67.54 =$77.72New UA = $78

Second-Year Adjustment

Current UA

$48 (gas: $13; electricity: $35)

$78 (gas: $10; electricity: $68)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

With Rounding

Second-year adjustment

$13 x 0.892 = $11.60$35 x 0.992 = $34.72

10 x 1.018 = $11.08$68 x 1.039 = $70.65

New UA

$11.60 + $34.72 =$46.32New UA = $46

$11.08 + $70.65 =$81.73New UA = $82

Without Rounding

Second-year adjustment

$13.38 x 0.892 =$11.93$34.72 x 0.992 =$34.44

$10.18 x 1.018 =$10.36$67.54 x 1.039 =$70.17

New UA

$11.93 + $34.44 =$46.37New UA = $46

$10.36 + $70.17 =$80.53New UA = $81

No, HUD systems will not automatically apply the UAF to the previous year’s utility allowance, nor is it the PBCA’s responsibility. Utility allowance regulations require an owner to “submit an analysis of the project’s utility allowances” for review and approval each year. This requirement extends to the factor-based years in which an owner will show how the factor was applied and identify the resulting utility allowance recommendation.

Here is an example of this type of phase-in:

Year One

Current Utility Allowance

$90

Decrease in First Year

40%

New Calculated Utility Allowance

$54

Year 1 Utility Allowance

$76

With a phase-in cap of 15% each year, the new capped utility allowance is $76 ($90 – (90*.15)). This is the utility allowance that gets implemented in Year 1.

Year Two

Second Year UAF (applied to calculated, uncapped new utility allowance)

+2%

New Actual Utility Allowance

$55

$54 + (54*.02)

Tenant’s Second Year Capped Utility Allowance

$65

$76 – (76*.15)

The utility allowance that gets implemented in Year 2 is $65 even though the calculated utility allowance is $55.

Year Three

Third Year UAF (applied to calculated, uncapped new utility allowance)

+2%

New Actual Utility Allowance

$56

$55 + (55*.02)

Tenant’s Third Year Utility Allowance

$56

Implement the actual calculated utility allowance as it is less than 15% lowerthan the previous year’s utility allowance.

In this example, the phase-in occurs over two years of the cycle (baseline year, plus first factor-adjusted year). In each of the factor-adjusted years, the factor is applied to the previous year’s calculated utility allowance (i.e., what the utility allowance would have been if there were not a cap put on it because of the requirement to phase it in). After that, there is a new baseline and phase-in requirements no longer apply.

Any year there is a decrease in the utility allowance, tenant notification must be provided.

Yes, but only in the initial implementation of the new methodology, and only if the decrease exceeds 15% AND is equal to or greater than $10.

Utility allowance phase-in eligibility is determined at the time of the first baseline analysis after implementation of Housing Notice 2015-04 only. At this time, the total decrease should be examined to determine if the decrease is more than 15% or $10 from the last utility allowance provided.

Yes, to the greatest extent possible, to standardize the data for variables such as weather or planned upgrades to units that could affect utility consumption.

By property (keeping in mind that if the property consists of multiple buildings, the buildings must be substantially similar in order for the O/A to sample by unit size property wide).

Yes, an O/A’s next utility analysis must be a baseline analysis in accordance with the requirements of the notice.

Owners may offer incentives but O/As may not pay for them out of project funds nor include them as an expense in the budget.

The notice intentionally does not identify HUD-approved tools as the field is changing regularly. This is the pertinent language in the notice:

“The energy consumption model must, at a minimum, take into account specific factors including, but not limited to, unit size, building orientation, design and materials, mechanical systems, appliances, and characteristics of the building location. Second, the

utility estimates must be calculated by either (1) a properly licensed engineer or (2) a qualified professional approved by HUD.”

One example, however, is the CUAC tool, which is available for use in California, from the website of the Tax Credit Allocation committee. For the specific question regarding approval by HFAs, O/As would need to contact the relevant HFA directly.

Section 811 PRA and Section 8 project-based rental assistance are two distinct programs; therefore Section 811 PRA owners must complete an analysis that separates the PRA units from the project-based units and vice versa.

The balance must be left to accumulate on the debit card. For utility allowance reimbursements, once a check is made payable to the tenant, or funds are deposited to a tenant’s debit card, ownership of the funds passes to the tenant. HUD does not receive the funds back, nor does the owner.

The sample selected should include only units covered under the RAD PBRA HAP Contract. Again, these are two distinct programs, and the unit samples should not overlap.

Multifamily Housing Regions | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

No. ABLE accounts are not considered an asset. The balance in an ABLE account does not count as a resource, and distributions from the account are not considered income. However, the account owner must be aware of the contribution limits and the potential impact on their eligibility for public benefits programs.

Yes Refer to the HUD Handbook 4350.3, REV-1, Change 4, Chapter 7, Section 2, Paragraph 7-10, A NOTE: NOTE: At a minimum, owners must apply screening criteria for drug abuse and other criminal activity, *including State sex offender registration, and use of the EIV Existing Tenant Search to persons proposed to be added to the household, including live-in aides. (See paragraph 7-11 B.1 and paragraph 4-7 B.5 for more information.) The owner must make sure that the person also discloses and provides verification of his or her SSN. (See Chapter 3, Paragraph 3-9 for more information on SSN disclosure requirements.)*

Yes. Refer to the HUD Handbook 4350.3, REV-1, Change 4, Chapter 5, Section 1, Paragraph 5-6, I & J.

Yes

Yes, and EIV Rules of Behavior.