The Trainer — October 2015
Complying with Recent HUD Memos; Calculating Utility Allowances
In this month’s feature, we discussed recent HUD memoranda and housing notices that include four additional issues that HUD-assisted sites need to include in their resident selection plans. HUD asks owners to review their resident selection plans at least annually to ensure that they reflect current operating practices, program priorities, and HUD requirements.
In our Compliance article, we discussed HUD Notice H-2015-04, which standardizes HUD’s new methodology for completing a utility analysis to calculate utility allowances. This new methodology is part of a larger effort by HUD to make multifamily sites more energy efficient.
QUIZ
QUESTION #1
You may not terminate HUD-assisted households at Low-Income Tax Credit (LIHTC) properties solely because they fail to meet LIHTC income requirements and student eligibility rules. True or false?
a. True.
b. False.
QUESTION #2
You may not inquire about the sexual orientation or gender identity of an applicant or occupant for purposes of determining eligibility for housing at your assisted site. True or false?
a. True.
b. False.
QUESTION #3
How often must you perform a utility analysis to determine baseline utility allowances for each of your site’s bedroom sizes using HUD’s new Utility Allowance Calculation Methodology?
a. Once every other year.
b. Once every third year.
c. Annually.
QUESTION #4
You must perform the utility allowance analysis for all units at the site, not just Section 8 units. True or false?
a. True.
b. False.
ANSWERS & EXPLANATIONS
QUESTION #1
Correct answer: a
True. According to “Occupancy Protection for HUD-Assisted Households in Properties with Low-Income Housing Tax Credits,” a HUD Memorandum published on Jan. 12, 2015, and directed to owners who participate in both a HUD-assisted program and the Low-Income Housing Tax Credit program, owners may not terminate HUD-assisted tenants who don’t meet LIHTC eligibility guidelines.
QUESTION #2
Correct answer: a
True. HUD issued Notice H 2015-01 on Feb. 6, 2015, to increase awareness among Office of Housing program participants of the requirements of the HUD Equal Access Rule for actual or perceived discrimination based on sexual orientation, gender identity, or marital status. HUD followed up on July 13, 2015, with Housing Notice H 2015-06, which details the compliance and enforcement option available to HUD for violations of the rule. Violations could result in HUD’s determination that the owner has failed to comply with program requirements.
QUESTION #3
Correct answer: b
Owners are required to use the sampling methodology once every third year to determine baseline utility allowances for each of their bedroom sizes. In the interim years, they can use the HUD Utility Allowance Factor.
QUESTION #4
Correct answer: b
False. The utility allowance analysis covers only those units that receive a utility allowance. According to HUD, only HUD-assisted units should be included in the analysis.