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Whether or not you pay for electricity in HUD housing depends on a few factors. HUD, or the US Department of Housing and Urban Development, defines the Total Resident Payment for rent to include both shelter and the costs for reasonable amounts of utilities. If utilities are master-metered, the PHA (Public Housing Agency) pays the local utility company for utilities used, and the utility costs are included in the basic rent levels established by the PHA. If utilities are individually metered, each household has a separate account with the utility company and pays the bill directly to that company. In this case, the PHA provides a utility allowance to the household through a reduction in the household's monthly rent. Utility allowances are estimates of the expenses associated with different types of utilities and their uses. If you pay for your own utilities, your share of rent will go down.
Do you pay electric in HUD housing?
| Characteristics | Values |
|---|---|
| Who pays for utilities in HUD housing? | This depends on the type of metering system in the building. If utilities are master-metered, the PHA (Public Housing Agency) pays the utility company and includes these costs in the basic rent. If utilities are individually metered, each household has a separate account and pays the utility company directly. |
| How does utility allowance work? | The PHA determines the utility allowance, or the amount needed to cover a resident's reasonable utility costs. This allowance is an estimate of expenses associated with different utilities, including electricity, gas, water, and sewage. If utilities are individually metered, the allowance is provided through a reduction in rent. |
| How does this impact rent? | If a resident pays their own utilities, their share of rent will decrease. If the landlord or PHA pays utilities, rent will not be impacted. |
| Can you request a higher utility allowance? | Yes, you can request a higher utility allowance if your disability or the disability of a family member requires more heat, cooling, water, or electricity. |
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What You'll Learn
Utility allowances
If utilities are not included in the rent but are the resident's responsibility, a utility allowance for reasonable utility consumption must be subtracted from the rent. If the cost of utilities is less than the permitted monthly rental amount, the amount of rent must be reduced by the cost of utilities. On the other hand, if the cost of utilities is greater than the permitted monthly rental amount, the household should receive a utilities reimbursement.
Where utilities are individually metered, each household has a separate account with the utility company and pays the bill directly to that company. For this reason, individually metered utilities are also called "resident-paid" or "resident-purchased" utilities. The Public Housing Authority (PHA) provides a utility allowance to the household through a reduction in the household's monthly rent. Many buildings have different metering systems for different utilities (sometimes referred to as "mixed metering"). For example, electricity might be individually metered, gas master-metered, and water checkmetered. An allowance could also be provided to residents for some non-metered utilities, such as trash pickup and sewer services, because the residents pay for these services directly. Individual meters are generally more common than checkmeters in public housing.
A master meter measures consumption for the building as a whole, rather than for individual dwelling units or households. Master meters are owned by the local utility company. Where utilities are master-metered, the PHA pays the local utility company for utilities used. In such instances, the utility costs are included in the basic rent levels established by the PHA, and no separate allowance is provided. However, the PHA may establish a "surcharge," an extra fee paid by residents for utility consumption for major appliances not seen as essential, such as a food freezer.
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Individually metered utilities
The Public Housing Agency (PHA) provides housing assistance to approximately 1.3 million households living in public housing across the country. The PHA determines the utility allowance, which is the cost of a reasonable amount of utilities. The utility allowance is paid by the housing voucher program in addition to the base rent price. Covered utilities include electricity, gas, oil, water, sewer, and garbage.
When utilities are individually metered, each household has a separate account with the utility company and pays the bill directly to that company. For this reason, individually metered utilities are also called "resident-paid" or "resident-purchased" utilities. The PHA provides a utility allowance to the household through a reduction in the household's monthly rent. Many buildings have different metering systems for different utilities (sometimes referred to as "mixed metering"). For example, electricity might be individually metered, gas master-metered, and water checkmetered. An allowance could also be provided to residents for some non-metered utilities, such as trash pickup and sewer services, because the residents pay for these services directly. Individual meters are generally more common than checkmeters in public housing. However, metering configurations vary widely by region.
Whether a household receives an allowance for a given utility service depends on the way the utilities are metered. Utilities can be metered in one of three ways: master-metered, checkmetered, and individually metered. Allowances are provided for checkmetered or individually metered utilities, but not for master-metered utilities. A master meter measures consumption for the building as a whole, rather than for individual dwelling units or households. Master meters are owned by the local utility company. Where utilities are master-metered, the PHA pays the local utility company for utilities used. In such instances, the utility costs are included in the basic rent levels established by the PHA, and no separate allowance is provided. However, the PHA may establish a "surcharge," an extra fee paid by residents for utility consumption for major appliances not deemed essential, such as a food freezer.
With checkmetered utilities, the PHA provides each household a utility allowance in the form of a maximum level of consumption that may be consumed without a surcharge. A surcharge is applied when a household exceeds this level. Some PHAs install separate sub-meters (called "checkmeters"), in addition to the utility-owned master meter, to measure consumption by individual dwelling units. These checkmeters are owned by the PHA. As with master-metered utilities, the PHA pays the utility company for utilities used.
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Master-metered utilities
In the context of HUD housing, master-metered utilities refer to when a master meter measures consumption for the entire building, as opposed to individual dwelling units or households. These master meters are owned by the local utility company. In the case of master-metered utilities, the Public Housing Agency (PHA) pays the utility company for the utilities used, and these costs are included in the basic rent levels established by the PHA. No separate allowance is provided for master-metered utilities. However, the PHA may implement a "surcharge," an additional fee paid by tenants for utility consumption related to non-essential major appliances, such as a food freezer.
It's important to note that metering configurations can vary depending on the region. For instance, individual metering is more common in the Northwest, while checkmetering is prevalent in the South. Mixed metering, where different utilities have different metering systems, is also common. For example, electricity could be individually metered, gas master-metered, and water checkmetered.
When it comes to allowances, these are provided for checkmetered or individually metered utilities but not for master-metered utilities. Allowances are estimates of expenses associated with various utility types and their uses. The PHA determines the utility allowance, which represents the necessary amount to cover a resident's reasonable utility costs. This allowance can be provided through a reduction in the household's monthly rent.
While master-metered utilities do not receive allowances, PHAs may install checkmeters in addition to the master meter to measure consumption by individual units. These checkmeters are owned by the PHA, and they allow for the implementation of allowances. With checkmetered utilities, the PHA establishes a maximum level of consumption without a surcharge for each household. If a household exceeds this level, a surcharge is applied.
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Rent payments
In HUD housing, the resident's share of rent is defined as 30% of the household's adjusted monthly income. This rent payment includes both shelter and the costs of reasonable amounts of utilities. The specific utilities covered under this allowance include electricity, natural gas, propane, fuel oil, wood or coal, and water and sewage service, as well as garbage collection.
The metering system for utilities in HUD housing can vary. In some cases, utilities are individually metered, meaning each household has a separate account with the utility company and pays the bill directly. In this case, the Public Housing Agency (PHA) provides a utility allowance to the household by reducing their monthly rent.
Alternatively, utilities may be master-metered, where a single meter measures consumption for the entire building. In this case, the PHA pays the utility company directly and includes the utility costs in the basic rent levels. The PHA may also establish a "surcharge" for residents' consumption of utilities for non-essential major appliances.
Additionally, some PHAs may install separate sub-meters, or "checkmeters," in addition to the master meter to measure consumption by individual dwelling units. In this case, the PHA still pays the utility company, but the costs are not included in the basic rent levels.
It's important to note that HUD provides maximum HOME rent limits to ensure fair and affordable housing. These limits are based on factors such as fair market rent for comparable units in the area and the adjusted income of the family.
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Utility costs
Metering Systems
The metering system in a building will determine how utility costs are measured and paid. There are three main types of metering systems that may be used in HUD housing: individually metered, master-metered, and checkmetered.
Individually Metered Utilities
With individually metered utilities, each household has its own separate account with the utility company and pays the bill directly. This system is also known as "resident-paid" or "resident-purchased" utilities. In this case, the Public Housing Agency (PHA) provides a utility allowance to the household by reducing their monthly rent. This type of metering is commonly used for electricity.
Master-Metered Utilities
A master meter is owned by the local utility company and measures the consumption for the entire building, rather than individual units. In this case, the PHA pays the utility company directly and includes the utility costs in the basic rent levels. However, no separate allowance is provided, and the PHA may establish a surcharge for the use of major appliances. This metering system is often used for gas.
Checkmetered Utilities
Some PHAs may install separate sub-meters, known as checkmeters, in addition to the master meter. These checkmeters are owned by the PHA and measure consumption for individual units. Similar to master-metered utilities, the PHA pays the utility company directly, and the costs are included in the rent with no separate allowance. Checkmeters are less common than individual meters in public housing.
Utility Allowances
Utility allowances are estimates of the expenses associated with different utilities, including electricity, natural gas, water, and sewage. If you pay your own utilities, your share of the rent will be reduced accordingly. You can also request a higher utility allowance if you have a disability or medical condition that requires increased utility usage.
It's important to note that utility allowances may not cover all your utility costs, and you may need to pay out of pocket for any additional expenses. Understanding the metering system in your building and the utility allowance provided will help you manage your utility costs effectively in HUD housing.
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Frequently asked questions
It depends on the metering system. If utilities are master-metered, the PHA pays the local utility company for utilities used and includes the cost in the basic rent levels. If utilities are individually metered, each household has a separate account with the utility company and pays the bill directly to that company.
The utilities covered by HUD housing include electricity, natural gas, propane, fuel oil, wood or coal, and water and sewage service, as well as garbage collection.
The PHA determines the utility allowance, which is the amount necessary to cover a resident's reasonable utility costs. This allowance is then deducted from the resident's rent. If you pay for your own utilities, your share of rent will go down.
