If the cost of any utilities (other than telephone) for a
residential rental unit are paid directly by the tenant, the Gross Rent for
that unit shall include the applicable Utility Allowance as determined under
this Section
4. This Section
4 is applicable only for purposes of
determining Gross Rent for rent restricted units administered or financed by
MSHA. In determining Gross Rent, MSHA will recognize three (3) options for
determining the applicable Utility Allowance amounts:
A. Department of Housing and Urban
Development ("HUD") Utility Allowance. In the event it is determined that the
subject project will utilize the published HUD Section 8 E xisting Housing
Allowances for Tenant-Furnished Utilities and Other Services, the applicable
Utility Allowance for all rent restricted dwelling units in the project shall
be the applicable HUD Utility Allowance.
B. Local Public Housing Authority ("PHA")
Utility Allowance. In the event it is determined that the subject project will
utilize a PHA Utility Allowance, the Utility Allowance for all rent restricted
units in such project shall be the applicable PHA Utility Allowance.
C. Local Utility Company ("LUC") Estimate.
Any interested party (including a tenant, an Owner, or MSHA) may obtain an
estimate from a LUC for purposes of establishing utility usage for a particular
unit or unit type and thus determining the appropriate Utility Allowance. The
LUC estimate must be in writing and must provide the estimated cost for utility
usage for a unit of similar size and construction for the geographic area in
which the project containing the unit is located. The LUC estimate may be
obtained by an interested party at any time during the project's compliance
period, as determined by MSHA. Unless the parties agree otherwise, costs
incurred in obtaining the estimate are borne by the initiating party. The
interested party that obtains the LUC estimate (the initiating party) must
retain the original of the LUC estimate and must furnish a copy of the LUC
estimate to the Owner. The Owner of the project must make available copies of
the LUC estimate to the tenants in the subject project.
D. Utility Allowance Changes. If at any time
during the project's compliance period, as determined by MSHA, the applicable
published Utility Allowance for a residential dwelling unit changes, the new
Utility Allowance must be used to compute Gross Rents within ninety (90) days
after the change.
