Utility Allowance Calculations

As required by HUD, periodic Utility Allowance (UA) adjustments are needed. CHS has performed UA analysis for PHAs and Section 8 housing providers throughout the USA. CHS uses the Engineering Method (24 CFR 982.517 and 4350-1) to determine tenant paid UA values. For more information refer to: http://www.hud.gov/offices/pih/programs/ph/phecc/allowances2.cfm#engineering

One of the significant advantages of using the Engineering Method is that unless the physical characteristics of the property change (new windows, insulation etc.) the Engineering Method spreadsheets can be used forever and only the utility rates require adjustment on an annual basis. CHS provides the client with the UA spreadsheets and instructions on how to make the annual utility rate adjustments. This allows the client to maintain the UAs and annually adjust them in less than one days time per year, as opposed to the consumption method that requires days and weeks of gathering utility bills from residents/ utility companies.

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