Rapidly rising utility costs, especially for heat, are impacting residents of multifamily properties that are assisted under HUD programs. The U. S. Department of Energy is forecasting a three-year high in 2022 for average residential utility costs across the country. Projected increases for the period 2020 - 2022 are:

Owners of Multifamily-assisted HUD properties for which HUD provides a utility allowance (UA) are reminded they are required to adjust their properties' utility allowances every year at the time of the annual and special adjustments of contract rents.

To do this, owners/agents (O/As) must follow the guidance in Housing Notice H-2015-04, which provides instructions on how to complete a Multifamily Housing Utility Allowance. O/As should also review the associated Frequently Asked Questions for additional guidance.

O/As are also required to submit documentation and a request for an increase in utility allowances to their Contract Administrator/HUD when changes in utility rates result in a cumulative increase in utility allowances of 10% or more from the most recently approved utility allowance.