[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.170]

[Page 712]
 
                 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.