Utility allowances must be reviewed annually and the result reported to Rural Development even when nothing changes

rd515.utility_allowance.annual_review_and_agency_submission · v1.0.0

In a Section 515 project where tenants pay the utilities, the borrower must establish a utility allowance for each size and type of rental unit based on estimated utility costs, review those allowances annually, adjust them for accuracy, and submit any change to Rural Development for approval. Where no change is needed the borrower must still notify the Agency that no change was made. Documentation justifying the allowances must be kept in the housing project files, and supporting documentation must accompany the annual budget submission.

Confidence

high

Effective from

2005-01-01

Last reviewed

2026-08-30