Utility Allowance Guidance from Region X

The Multifamily HUD staff in cooperation with the Performance Based Contract Administrators (PBCA) have developed guidance to assist owners and agents with calculating tenant paid Utility Allowances. The Regional Guidance combines information from HUD Handbook 4350.1, Chapter 7, and the Clarification of Utility Allowance Regulation Memorandum issued by Carol Galante, Deputy Assistant Secretary for Multifamily Housing Programs, on June 20, 2011. The purpose of the Regional Guidance is to inform owners and agents what information/documentation is needed to properly calculate a Utility Allowance based on a prudent tenant’s usage.

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