Texas Administrative Code › Title 10 - COMMUNITY DEVELOPMENT › Part 1 - TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS › Chapter 10 - UNIFORM MULTIFAMILY RULES › Subchapter F - COMPLIANCE MONITORING › Section 10.614 - Utility Allowances

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The
				  purpose of this section is to provide the guidelines for calculating a Utility
				  Allowance under the Department's multifamily programs. The Department will cite
				  noncompliance and/or not approve a Utility Allowance if it is not calculated in
				  accordance with this section. Owners are required to comply with the provisions
				  of this section as well as any existing federal or state program
				  guidance.
(b) Definitions. The
				  following words and terms, when used in this section, shall have the following
				  meanings, unless the context clearly indicates otherwise. Other capitalized
				  terms used in this section herein have the meanings assigned in Chapters 1, 2,
				  10, 11, and 12 of this title.
(1) Building
				  Type. The HUD Office of Public and Indian Housing (PIH) characterizes building
				  and unit configurations for HUD programs. The Department will defer to the
				  guidance provided by HUD found at:
http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_11608.pdf
(or successor Uniform Resource Locator (URL)) when making determinations
				  regarding the appropriate building type(s) at a Development.
(2) Power to Choose. The Public Utility
				  Commission of Texas database of retail electric providers in the areas of the
				  state where the sale of electricity is open to retail competition:
http://www.powertochoose.org/
(or
				  successor URL). In areas of the state where electric service is deregulated,
				  the Department will verify the availability of residential service directly
				  with the Utility Provider. If the Utility Provider is not listed as a provider
				  of residential service in the Development's ZIP code for an area that is
				  deregulated, the request will not be approved.
(3) Component Charges. The actual cost
				  associated with the billing of a residential utility. Each Utility Provider may
				  publish specific utility service information in varying formats depending on
				  the service area. Such costs include, but are not limited to:
(A) Rate(s). Any cost incurred for the actual
				  unit of measure for the utility (e.g., base cost per kilowatt hour for
				  electricity, TDU delivery charges, rate per gallon of water, etc.);
(B) Fees. The cost associated with a
				  residential utility that is incurred regardless of the amount of the utility
				  the household consumes (e.g., Customer Charge);
(C) Taxes. Taxes for electricity and gas are
				  regulated by the Texas Comptroller of Public Accounts and can be found
http://comptroller.texas.gov/
(or
				  successor URL). Local Utility Providers have control of the tax structure
				  related to water, sewer and trash. To identify if taxes are imposed for these
				  utilities, obtain documentation directly from the Utility Provider.
(4) Multifamily Direct Loan
				  (MFDL). Funds provided through the HOME, NSP, NHTF, TCAP RF, HOME-ARP, or other
				  program available through the Department, local political subdivision, or
				  administrating agency for multifamily development that require a Utility
				  Allowance. MFDLs may also include deferred forgivable loans or other similar
				  direct funding, regardless if it is required to be repaid. Housing Tax Credits,
				  Tax Exempt Bonds, and Project Based Vouchers are not MFDLs.
(5) Renewable Source. Energy produced from
				  energy property described in IRC §48 or IRC §45(d)(1) through (4),
				  (6), (9), or (11). The manner in which a resident is billed is limited to the
				  rate at which the local Utility Provider would have charged the residents for
				  the utility if that entity had provided it to them, and as may be further
				  limited by the Texas Utilities Code or by regulation.
(6) Submetered Utility. A utility purchased
				  from or through a local Utility Provider by the building Owner where the
				  resident is billed directly by Owner of the building or to a third party
				  billing company and the utility is:
(A) Based
				  on the residents' actual consumption of that utility and not an allocation
				  method or Ratio Utility Billing System (RUBS); and
(B) The rate at which the utility is billed
				  does not exceed the rate incurred by the building Owner for that
				  utility.
(7) Utility
				  Allowance. An estimate of the expected monthly cost of any utility for which a
				  resident is financially responsible, other than telephone, cable television, or
				  internet. A utility allowance is considered implemented once the Unit Status
				  Report is updated and rents are restricted.
(A) For HTC, TCAP, Exchange buildings, Bonds,
				  and THTF include:
(i) Utilities paid by the
				  resident directly to the Utility Provider;
(ii) Submetered Utilities; and
(iii) Renewable Source Utilities.
(B) For a Development with an
				  MFDL, unless otherwise prescribed in the program's Regulatory Agreement,
				  include all utilities regardless of how they are paid.
(8) Utility Provider. The company that
				  provides residential utility service (e.g., electric, gas, water, wastewater,
				  and/or trash) to the buildings.