Title
Resolution to Approve the FY26 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 receive 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 utility costs in the community annually. The AAHC hired a consultant, Zappling, to conduct the analysis and provide a recommendation for the utility allowance based on utility rate charges 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 FY25 to FY26.
Voucher Program Utility Comparison FY25 & FY26
Utility
$ per
2025
2026
Change
Percent
Bottled Gas
gallon
2.239
2.233
-0.006
0%
Electricity
kWh
0.187
0.762
+0.575
+307%
Fuel Oil
gallon
3.526
3.187
-0.339
-10%
Natural Gas
CCF
1.01
0.3728
-0.6372
-63%
Water
CCF
3.007
2.55
-0.457
-15%
Sewer
CCF
6.531
6.52
-0.011
0%
Electric, Fuel Oil, Natural Gas, and Water rates have changed 10% or more and the utility allowance must be adjusted, as required by HUD. The new rates will take effect July 1, 2025.
Staff
Prepared by Weneshia Brand, Deputy Director
Approved by Jennifer Hall, Executive Director
Body
WHEREAS, HUD's Section Eight Management Assess...
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