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Utility Allowance Modeling

Are you still using the Public Housing Authority
(PHA) Housing utility allowance?

Our team conducts utility allowance modeling for multifamily affordable housing developments across the United States. Developers and managers of these properties have the option of providing actual consumption data or conducting energy consumption modeling in lieu of adopting local housing utility allowances. In cases where the actual consumption or the modeled consumption is lower than the published housing utility allowance, the developer or management company can increase its profit and recover money invested in water and energy efficiency upgrades. The cost of conducting a water or energy consumption model can generally be recovered in two months or less. Better yet, if the model we create for you does not make economic sense by being lower the local published housing allowance, or if the model is not approved by the regulating state agency, there is no charge. It’s as simple as that!

States in which our models have been approved so far

In Progress
Approved

Interested in Seeing What We Can Do for You?

The First One is On Us!

That’s right!  If you would like to see what Plummer can do for you, simply fill out the following data collection form and we will be in contact with you immediately. Better yet, you could significantly increase your annual NOI at no cost for your first property!

Energy Consumption Modeling is the fairest and most equitable means for establishing utility allowances.
Energy consumption modeling links both the tenant and owner in fostering energy & water efficient improvements and practices.
Each energy consumption model is a unique fingerprint.
Responsible UA modeling helps to facilitate future investments in additional affordable housing development.
The expected responsible behaviors of your tenants are just as important as the efficiencies of your property.
UA modeling can increase the value of your property and recover costs associated with water & energy efficiency upgrades.
We provide our clients our clients with a working tool that can be used to calculate the benefits associated with potential upgrades.
Tenants deserve to live in well managed properties that are water & energy efficient for lower utility bills.

More info about Utility Allowance Modeling

Utility allowances are intended to reflect “typical” utility costs, not actual bills or costs paid by any individual household. For most programs, utility allowances approximate the reasonable consumption of utilities by an energy-conservative household of modest circumstances consistent with the requirements of a safe, sanitary, and healthful living environment. (1,2).

Where utility allowance adjustments are pursued, they should reflect savings from energy efficiency improvements in a manner that is fair to tenants, financially feasible for owners, and reduces long-term public subsidy expenditures (2).

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References
1.

24 C.F.R. § 965.505(a) (2015) (Public Housing); 24 C.F.R. § 5.603(b) (2015) (FHA-subsidized and project-based Section 8 subsidies); 24 C.F.R. § 982.517 (2015) (Vouchers). See also 26 C.F.R. § 1.4210 (2015) (requirements for LIHTC developments, not explicitly mentioning “energy conservative households” or “reasonable consumption,” but permitting various methods often involving allowances set by HUD programs).

2.

An Affordable Housing Owner’s Guide to Utility Allowances. Overview of federal program requirements and tips for considering utility allowance adjustments as part of your energy efficiency financing strategy. April 2016. California Housing Partnership Corporation and National Housing Law Project.

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