A utility allowance is an estimated adjustment for utilities that is not included in the tenant’s rent. The adjustment is used to keep proposed rents within gross rent guidelines of the applicable program. It is also used to adjust gross rents to compare with area net rents.
MHDC is responsible for collecting utility allowance information quarterly for projects involved in the MHDC Fund Balance, Low Income Housing Tax Credit, and HOME programs. MHDC requires the use of the HUD Utility Schedule Model for units where HOME funding was committed after August 23, 2013. Utility Allowance information must be submitted in MHDC’s AMRS system.