Title
Resolution to Approve the 2016 Utility Allowance and Operating Cost Adjustment Factor (OCAF) for RAD PBV properties
Memorandum
HUD requires the Ann Arbor Housing Commission (AAHC) to conduct an annual review of utility costs (electric and natural gas rates) to ensure that the utility allowances calculated for RAD PBV program participants are reasonable and within regulatory compliance.
The AAHC hired a contractor, Housing Authority Services (HAS), to complete this year's review. Attached are the results of the utility study and the recommended utility allowances for the AAHC RAD PBV properties. Under the RAD regulations, HUD allows the Housing Commission to either use the Voucher utility schedule or adopt project-specific utility schedules.
The attached report includes both public housing and RAD PBV housing based on actual utility usage. For the purpose of this resolution, the board is adopting the recommendations for Baker, Hikone, Green-Baxter, South Maple, North Maple Duplexes and Upper Platt.
Please note that the AAHC is recommending that the board adopt the same utility allowance for the new construction apartments at North Maple that are currently in place because there is no usage history upon which to base an analysis. HAS based their analysis on the previous buildings which have now been demolished. Once the new apartments are occupied, then a usage analysis can be conducted and recommendations made to the board.
HAS is still conducting a utility analysis for Main, Pennsylvania and Seventh and that recommendation will be brought to the board separately when it is available. In the meantime, the utility allowance for these properties will not change.
In addition, under the RAD program, HUD allows the Housing Commission to increase the rents bases on an annually published cost of living adjustment, known as the Operating Cost Adjustment Factor (OCAF). HUD's published OCAF for Michigan is 2.5% for CY16. The rent increase base...
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