Publication
Utility Allowances in Federally Subsidized Multifamily Housing
This paper provides an analysis of the statutes, regulations, and guidance that govern the treatment of utility costs in the four largest federal subsidized housing programs—Public Housing, Project-Based Section 8, Housing Choice Vouchers, and Low-Income Housing Tax Credits—and the incentives these rules create for the consumption of utilities. It finds that many of these programs are structured such that tenants and owners are either indifferent about utility costs or are rewarded for overconsumption. This paper makes several recommendation for how these programs can be restructured to incentivize lower utility consumption, which can reduce the environmental footprint of subsidized housing, improve the financial viability of existing subsidized properties, and free resources that can be repurposed for other HUD goals.
