Section 346-5-3 - Section 8 UnitsA. Annual Review. The Owner is responsible for gathering information and data necessary for the performance of an annual review of the projected Energy Costs for each unit and to compare the results of such annual review with the Baseline for each unit. Based on the results of each annual review and Baseline comparison, the Owner must annually recommend a Utility Allowance for each unit and unit type. The recommended Utility Allowance must represent the Owner's best estimate of Energy Costs for that particular unit type. The recommended Utility Allowance is not intended to equal all utility costs but rather it is intended to equal an amount necessary to reimburse to the tenant an amount equal to the Energy Costs for that particular unit type. If the results of an annual review require a Baseline adjustment, the Owner must submit to MSHA a summary containing certain information, including, but not limited to, the following information supporting the proposed Baseline change (increase or decrease), and the Owner must receive MSHA approval prior to implementing the proposed Baseline change:
1 description of the type of utilities covered by the Utility Allowance;2 statement of whether any utility rate increase or decrease took effect during the past 12 months or is expected to be implemented in the next 12 months and the amount of those increases or decreases; and3 statement of how any energy conservation initiatives have or will impact energy consumption.B. Utility Allowance Adjustments; Tenant Notice.1 If at any time throughout the year the Owner determines that there has been a change in applicable Energy Costs, or there have been changes in the costs of other utilities which would result in a 10% or greater increase or decrease in Energy Costs, 5% or greater where the increase or decrease includes heating costs, as compared to the Utility Allowance currently in effect, the Owner shall notify MSHA of such changes and upon receipt of MSHA approval make necessary Utility Allowance adjustments in accordance with any MSHA directive and only after the delivery of any tenant notice as may be required by this Rule.2 In all cases, tenants must be given at least thirty (30) days prior written notice of any change in the amount of his/her rental payment and Utility Allowance, if applicable. Such notice should include a brief explanation as to how the new amount was calculated, and a request for comments by the tenant. Such comments shall be reviewed by the Owner and the Owner shall provide an appropriate written response to the tenant. Prior to the implementation of any such change the Owner shall submit a written request for revision to MSHA along with copies of any supporting documentation including tenant comments.C. Change in Responsibility for Payment of Utilities; Heating System Conversion. 1 Upon MSHA's approval, the Owner may convert from tenant-paid utilities to Owner-paid utilities after initial project occupancy where the highest cost utility is paid by the tenant. In such cases MSHA may require the Owner to engage the services of a certified engineer to conduct an energy audit in accordance with all applicable state recommended standards and/or codes for multi-family developments. The audit will include comprehensive data including but not limited to actual usage data for the previous 12 months for each unit and projected utility usage for each unit. MSHA may require a heating system conversion where such audit shows that actual energy usage for the project exceeds 120% of that which is determined to be reasonable by comparison to the energy usage of comparable projects.2 In those cases where MSHA has approved a post-occupancy change in the responsibility for the payment of utilities or a heating system conversion, the Owner must provide notice to the tenants at least 60 days prior to such change or conversion outlining the specifics of the proposed change or heating system conversion. If the effective date of the adoption of the change in responsibility for payment of utilities is other than the lease renewal date and the current lease does not provide for such change in responsibility, such notice must also state that any tenant may decline to execute any document seeking to shift the responsibility for utility payments prior to the lease renewal date.3 MSHA recommends that the Owner hold a meeting of all affected tenants to discuss the proposed Utility Allowance change forty-five (45) days prior to implementation of the proposed change or start of any heating system conversion. The Owner shall retain all tenant comments and Owner recommendations in their files for a minimum of three (3) years.4 Tenants must be provided a new lease or lease amendment reflecting any change in the responsibility for utility costs.5 Insofar as possible, any change in responsibility for payment of utilities between Owner and tenant shall take place between the months of May and September.99- 346 C.M.R. ch. 5, § 3