Title
Resolution to Approve the FY27 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 FY26 to FY27.
Voucher Program Utility Comparison FY25 & FY26
Low Rise 2 Bedroom Unit
Rowhouse 3 Bedroom
Utility
7/1/25
7/1/26
Change
Percent
Utility
7/1/25
7/1/26
Change
Percent
Natural Gas
Heat
$ 53.00
$ 54.00
0.019
2%
Natural Gas
Heat
$ 46.00
$ 48.00
0.042
2%
Water Heater
$ 13.00
$ 13.00
0.000
0%
Water Heater
$ 17.00
$ 18.00
0.056
0%
Stove
$ 4.00
$ 4.00
0.000
0%
Stove
$ 6.00
$ 6.00
0.000
0%
Electric
Heat Resistance
$ 86.00
$ 86.00
0.000
0%
Electric
Heat Resistance
$107.00
$ 86.00
-0.244
-24%
Water Heater
$ 41.00
$ 40.00
-0.025
-2%
...
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