This is a friendly reminder to Owners using a utility allowance methodology other than the Public Housing Authority (PHA) Methodology, the deadline to submit an annual utility allowance request is October 1, 2025. Failure to submit, if required by the chosen methodology, may result in noncompliance.
Properties funded with Department MFDL funds (HOME, HOME-ARP, NHTF, NSP, or TCAP RF) submitting an annual utility allowance request must meet the October 1, 2025, deadline. If a request is not received by October 1, TDHCA will calculate the utility allowance using the HUD Utility Schedule Model as prescribed in 10 TAC Section 10.614. If an MFDL (HOME-ARP or special circumstance) property has been approved to utilize the PHA Method for the Utility Allowance, annual submission is required to continue using this method.
With the exception of MFDL developments, if an Owner fails to submit for annual review during the calendar year, the Development’s Utility Allowance will default to the applicable PHA allowance for the purposes of any monitoring reviews. If the Development is located in an area that does not have a PHA, the Development fails to have a properly calculated Utility Allowance. If the Owner fails to submit the annual utility allowance review and the property is monitored by the Department, noncompliance may be cited during the review. The Utility Allowance for MFDL Developments that fail to submit for annual review will be calculated as outlined in the paragraph above.
All required forms can be found on the TDHCA’s website at https://www.tdhca.texas.gov/compliance-utility-allowance-information.
The Department has conducted and posted a detailed training on Utility Allowances, which can be found at https://www.tdhca.texas.gov/compliance-program-training-presentations.
Guidance on acceptable methodologies can be found at https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223091&queryAsDate=08%2F25%2F2025&interface=VIEW_TAC_SUMMARY&$locale=en_US.
If you have questions related to the annual utility allowance request, please contact Cara Pollei by email at [email protected].