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federalUnited StatesLow-Income Housing Tax Creditutility_allowance

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.

Pub. 5913 Category 11m, A.9 sets out when the clock starts for each method: receipt for a utility company or agency estimate, the HUD-52667 Form Date for the HUSM, and 60 days after the end of the data period for an energy consumption model. Those start dates are the single largest source of state variation in this domain and are encoded per-agency in the state layer.
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 allowances
    26 CFR 1.42-10(c)(1), first two sentences
    regulationSource ↗verified 1d ago
  • Utility allowances
    26 CFR 1.42-10(c)(1), submission and availability
    regulationSource ↗verified 1d ago
  • Utility allowances
    26 CFR 1.42-10(c)(1), agency estimates and costs
    regulationSource ↗verified 1d ago
  • Guide for Completing Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition
    Pub. 5913 (1-2024), Category 11m, C(2), Example 1
    persuasive_agency_guidanceSource ↗verified 1d ago