Current through 2024-51, December 18, 2024
Section 346-5-4 - Rent Restricted UnitsIf 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.99- 346 C.M.R. ch. 5, § 4