Low Income Housing Tax Credits & Project-specific utility allowances in Arizona, 2016

Arizona's 2016 Qualified Allocation Plan requires project-specific utility allowances. 

Arizona's 2016 QAP requires project-specific utility allowances. Utility allowances are required to be based on an energy consumption model and must be prepared by a certified RESNET Home Energy Rater. 

For existing properties that are not being remodeled or rehabilitated, the qualified energy professional shall obtain from the appropriate utility companies actual utility bills for the previous twelve months of the building operation and calculate the average, total utility bill for each unit type for the property.  

For existing properties that are being remodeled or rehabilitated, a certified RESNET Home Energy Rater shall perform an energy analysis for the property following the RESNET Home Energy Rating System Standards. The analysis shall establish an estimated utility allowance for each unit type based on the implementation of all ADOH approved improvements. After all improvements have been made and all necessary verification testing and inspections have been completed, a RESNET "confirmed rating" or "sample rating" shall be issued for the project. 

For New Construction properties, a Certified RESNET Home Energy Rater shall perform an energy analysis for the proeprty following the RESNET Home Energy Rating System Standards. The analysis shall establish an estimated utility allowance for each unit type based on the implementation of all ADOH approved design requirements. At Project final, and completion of all necessary verification testing and inspections, a RESNET "confirmed rating" or "sample rating" shall be issued for the Project. 

For Existing Rehab and New Construction Projects, the estimated utility allowances are to be utilized for the first year of building operation and rent calculations. At the conclusion of the first year of operation utilizing the utility allowance estimates, the qualified professional shall obtain from the appropriate utility companies actual utility bills for the previous twelve months of building operation. The professional shall calculate the average actual utility bill for each unit type for the property. Once approved, the new utility allowances are to be used and updated annually using the same process. 

Contributed By: 
National Housing Trust

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