Section 92.252(d) requires the participating jurisdiction (PJ) to use the HUD Utility Schedule Model to determine a project’s annual utility allowance or otherwise determine a project’s utility allowance based upon the utilities used at the project. Is this requirement applicable to a PJ’s HOME Tenant-Based Rental Assistance (TBRA) Program?

Date Published: November 2013

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No, the requirement to use HUD’s Utility Schedule Model is only applicable to HOME-assisted rental housing projects. However, PJs administering a TBRA program must establish a payment standard which represents the rent plus utility cost of moderately priced units that meet HUD Housing Quality Standards (HQS) in the jurisdiction. Therefore, when tenants pay their own utilities, the PJ must establish a utility allowance amount that is deducted from the tenants’ rent payment to the owner. HUD recognizes that Public Housing Authorities (PHAs) often administer a PJ’s TBRA program and in the interest of reducing the administrative costs to TBRA administrators, the HOME Program permits the PJ to use the PHA’s utility allowance schedule for its HOME TBRA program. The PJ may also use other HUD-approved methodologies to establish utility allowances for its HOME TBRA program.

Tags: HOME Tenant-Based Rental Assistance