Title
Resolution to Approve the FY20 Utility Allowances for the Housing Voucher Programs
Memorandum
The Ann Arbor Housing Commission's Housing Choice Voucher program includes both tenant-based and project-based vouchers. In both cases participating tenants receives a rent subsidy based on the unit's rent and utilities. The rent and utilities for the unit must not exceed the AAHC's payment and subsidy standards. If the rent does not include the utilities, the AAHC calculates the estimated cost of utilities for that unit based on the number of rooms, utility types, and appliances used. Once the unit is approved, the AAHC calculates the portion of the rent and utilities that the tenant pays (30% of adjusted income) and the balance is paid by the voucher.
The Ann Arbor Housing Commission (AAHC) must review the utility costs in the community annually. The AAHC hired a consultant, HAPPY Software, to conduct the analysis and provide a recommendation for the utility allowance based on utility rate changes from the previous year.
HUD regulations require PHAs to adjust allowances where any of the rates have changed 10% or more since the last time the utility schedule was revised, but provide PHAs the discretion to adjust allowances to align them with any rate changes at any time. Below is a chart showing the changes from FY19 to FY20.
Voucher Program Utility Comparison FY19 & FY20
FY19
FY20
change
percent
elec kwh
0.155
0.154
-0.001
-0.65%
gas therm
0.835
0.829
-0.006
-0.72%
liquid fuel oil
2.61
2.658
0.048
1.81%
bottled gas
2.12
2.056
-0.064
-3.11%
water CCF's
1.899
2.211
0.312
14.11%
sewer CCF's
4.715
5.726
1.011
17.66%
Although the Water and Sewer are the only two rates that have changed 10% or more, staff recommends that the AAHC adopt the new rate schedule to lessen the impact of a 2-year change for FY20. The new rates will take effect August 1, 2019.
Staff
Prepared by Weneshia Brand, Director of Operations
Approved by Jennifer Hall, Executive Dir...
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