A changed allowance binds rents due 90 days after the change, and estimates must reach the agency and the tenants at the START of that period
lihtc.ua.ninety_day_implementation_with_agency_submission_and_tenant_availability · v1.0.0
If the applicable utility allowance for units changes at any time during the building's extended use period, the new allowance must be used to compute gross rents of the units due 90 days after the change. The 90 days are not a grace period for the owner: where the change lowers the allowable rent, the lower rent must be in effect for rent due at the end of the period. An owner using a utility company estimate, the HUD Utility Schedule Model or an energy consumption model must submit copies of the utility estimates to the agency with jurisdiction AND make the estimates available to all tenants in the building at the beginning of the 90-day period, before the allowance may be used in determining gross rent. An agency estimate must likewise be made available to all tenants at the beginning of the period. The agency may require additional information during the 90 days. The owner pays for obtaining the estimates and for providing them to the agency and the tenants.
- Confidence
- high
- Effective from
- 2008-07-29
- Last reviewed
- 2026-08-31
Evidence required
- Utility allowance documentation(one_per_year)
Citations
All sources verified within 1 day- Utility allowances26 CFR 1.42-10(c)(1), first two sentences
- Utility allowances26 CFR 1.42-10(c)(1), submission and availability
- Utility allowances26 CFR 1.42-10(c)(1), agency estimates and costs
- Guide for Completing Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building DispositionPub. 5913 (1-2024), Category 11m, C(2), Example 1