Owners of Low Income Housing Tax Credit properties in Colorado now have the option of basing utility allowances on energy, water, and sewage consumption. The Energy Consumption Model is included the Colorado Housing Finance Agency Utility Allowance Policy, which was made effective January 1, 2015.
Under this new regulation, LIHTC owners must consider more than just energy, water, and sewage consumption when using the Energy Consumption Model. They must take into account the size of the unit, as well as the building’s design and materials, mechanical systems, appliances, and location. This model requires that a properly licensed engineer or qualified professional prepares the utility allowance, using data for a 12-month period ending no more than 60 days prior to the date the utility allowance will change. If a newly constructed or renovated building has less than 12 months of consumption data, the engineer can use data from similarly sized and constructed units in the surrounding area.
LIHTC owners can also obtain annual allowances from the public housing authority, local utility company estimates, and HUD model utility estimates. Any changes to current utility allowances require written approval by CHFA.
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