[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR990.170]



[Page 714]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 990_THE PUBLIC HOUSING OPERATING FUND PROGRAM--Table of Contents

 

                 Subpart C_Calculating Formula Expenses

 

Sec.  990.170  Computation of utilities expense level (UEL): Overview.



    (a) General. The UEL for each PHA is based on its consumption for 

each utility, the applicable rates for each utility, and an applicable 

inflation factor. The UEL for a given funding period is the product of 

the utility rate multiplied by the payable consumption level multiplied 

by the inflation factor. The UEL is expressed in terms of PUM costs.

    (b) Utility rate. The utility rate for each type of utility will be 

the actual average rate from the most recent 12-month period that ended 

June 30th prior to the beginning of the applicable funding period. The 

rate will be calculated by dividing the actual utility cost by the 

actual utility consumption, with consideration for pass-through costs 

(e.g., state and local utility taxes, tariffs) for the time period 

specified in this paragraph.

    (c) Payable consumption level. The payable consumption level is 

based on the current consumption level adjusted by a utility consumption 

incentive. The incentive shall be computed by comparing current 

consumption levels of each utility to the rolling base consumption 

level. If the comparison reflects a decrease in the consumption of a 

utility, the PHA shall retain 75 percent of this decrease. Alternately, 

if the comparison reflects an increase in the consumption of a utility, 

the PHA shall absorb 75 percent of this increase.

    (d) Inflation factor for utilities. The UEL shall be adjusted 

annually by an inflation/deflation factor based upon the fuels and 

utilities component of the United States Department of Labor, Bureau of 

Labor Statistics (BLS) Consumer Price Index for All Urban Consumers 

(CPI-U). The annual adjustment to the UEL shall reflect the most 

recently published and localized data available from BLS at the time the 

annual adjustment is calculated.

    (e) Increases in tenant utility allowances. Increases in tenant 

utility allowances, as a component of the formula income, as described 

in Sec.  990.195, shall result in a commensurate increase of operating 

subsidy. Decreases in such utility allowances shall result in a 

commensurate decrease in operating subsidy.

    (f) Records and reporting. (1) Appropriate utility records, 

satisfactory to HUD, shall be developed and maintained, so that 

consumption and rate data can be determined.

    (2) All records shall be kept by utility and by project for each 12-

month period ending June 30th.

    (3) HUD will notify each PHA when HUD has the automated systems 

capacity to receive such information. Each PHA then will be obligated to 

provide consumption and cost data to HUD for all utilities for each 

project.

    (4) If a PHA has not maintained or cannot recapture utility data 

from its records for a particular utility, the PHA shall compute the UEL 

by:

    (i) Using actual consumption data for the last complete year(s) of 

available data or data of comparable project(s) that have comparable 

utility delivery systems and occupancy, in accordance with a method 

prescribed by HUD; or

    (ii) Requesting field office approval to use actual PUM utility 

expenses for its UEL in accordance with a method prescribed by HUD when 

the PHA cannot obtain necessary data to calculate the UEL in accordance 

with paragraph (f)(4)(i) of this section.