Utility Allowances

Assisted tenants who pay all or some of their utilities may be eligible to receive a Utility Allowance. Utility allowances apply only for assisted tenants who live at properties where all or some of their utilities (except telephone) are paid directly by them. 

The utility allowance is not meant to pay all actual utility costs, but rather, it is to reimburse a prudent utility consumer for their utility expense.

When the Total Tenant Payment (TTP) is less than the Utility Allowance, the tenant is eligible to receive a Utility Reimbursement payment. The utility reimbursement amount is calculated by subtracting the TTP amount from the utility allowance amount. The owner must distribute the utility reimbursement payment to eligible tenants within 5 business days of receipt of the assistance payment from HUD/PBCA.

For each rent increase request submitted to OHFA, the owner must recommend a utility allowance for each unit type. The recommended utility allowance should represent the owner's best estimate of the average monthly utility cost that an energy conscious resident will incur for the year. The estimate should represent utility costs (except telephone) for an average family occupying a unit at the property.

The owner must notify the tenants in writing of both the proposed and the current utility allowance levels when submitting a rent increase request to OHFA.

The owner must notify the tenants in writing of the OHFA approved utility allowance levels. The notice must also allow the tenants to have a 30 day comment period.