Under HUD regulation, a Public Housing Agency (PHA) is responsible for establishing and maintaining a utility allowance schedule that provides reasonable allowances for tenant-paid utilities and appliances, which are used in calculating the gross rent of a unit. The utility allowance is intended to enable participating families to pay typical costs for utilities and services paid by energy-conserving households occupying units of similar size and type in the same locality. 

In calculating the gross rent for units leased under the HCV Program, as well as the Housing Assistance Payment (HAP) for which the family qualifies, a PHA must consider not only the contract rent that is paid to the owner, but also the anticipated cost of any utilities that the tenant family is required to pay. Payment of bills for tenant-paid utilities is the responsibility of the family, and any interruption or termination of utility services because of the family’s failure to pay is considered a breach of the family’s obligations under the HCV Program.

The utility allowance and appliance provisions listed in the tenancy lease agreement are incorporated into the HAP contract. Any time a change is made in the responsibility for payment of utility expenses, the owner and the tenant must report the change to the PHA so that the contract rent and the utility allowance can be adjusted accordingly.

LACDA Utility Allowance Schedule

FY 2024 Utility Allowance Schedule  |  FY 2023 Utility Allowance Schedule