To: Honorable Chair and Commissioners
From: Steve Potter, City Manager
Prepared By: Sabrina Daniels, Housing Supervisor
TITLE:
Title
Section 8 Utility Allowance Schedule 2024
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution approving the Revised Utility Allowance Schedule for the Section 8 Housing Choice Voucher Program effective November 1, 2024.
Body
DISCUSSION:
The Section 8 Housing Choice Voucher Program regulations provide for a utility allowance for tenant-paid utilities that is taken into consideration when calculating the amount of rent that a tenant will pay under the rental assistance program. Federal regulations require the Housing Authority to review these rates annually. The current Utility Allowance Schedule has been in effect since November 1, 2023.
Because this work requires specialized training and involves complex formulas, most housing authorities retain outside consultants to perform the calculations. This year, the Housing Authority contracted with the Nelrod Company to update the utility allowances. The Nelrod Company certifies that a US Department of Housing and Urban Development (HUD) approved method was used to develop the utility allowances.
The Utility Allowance Schedule provides for an allowance for tenant-paid utilities under each of the following general categories:
• Space heating
• Cooking
• Other electric
• Air conditioning
• Water heating
• Water
• Sewer
• Trash collection
• Tenant-provided refrigerator and range
The utility allowances vary by the type of unit, number of bedrooms, and whether heating and cooking utilize gas, electric, or propane. For trash collection, the schedule uses a 35-gallon cart size for studio, one- and two-bedroom units and a 65-gallon cart size for three, four- and five-bedroom units.
The rates in the proposed Utility Allowance Schedule take into consideration a special discounted rate available to persons with lower incomes through Pacific Gas and Electric’s CARE Program. Although participation in the CARE Program is voluntary, staff believe most of the participants in the Section 8 Housing Choice Voucher Program are also enrolled in the CARE Program. When new clients receive a Section 8 Housing Choice Voucher or when existing voucher holders have their annual recertification, staff provide information on the CARE Program to ensure that they are aware of this resource.
The rates proposed also reflect a Climate Credit, which is a program designed to provide financial relief to residential electricity customers. The credit is applied twice a year (in April and October) to offset a portion of the electricity charges on eligible customers' bills. This program is part of California's efforts to fight climate change and reduce greenhouse gas emissions.
The analysis conducted showed utility rates as follows:
ELECTRIC - Pacific Gas & Electric’s tier-1 rates increased 26%, tier-2 rates increased 26%, and the monthly credit decreased -44% from -$6.40 to -$9.20.
NATURAL GAS - Pacific Gas & Electric’s natural gas tier-1 rates increased 19%, tier-2 rates increased 18%, and the monthly credit decreased -62% from -$4.40 to -$7.12.
BOTTLE GAS/PROPANE - Napa Valley Petroleum’s propane fuel increased 2%.
WATER, SEWER & TRASH COLLECTION - The City of Napa’s water Multi-Family rates increased 17% and the monthly charge increased 8%, Single-Family rates increased 20% and the monthly charges increased 8%.
Napa Sanitation District’s sewer monthly charge 6%, for Multi-Family and Single-Family sewer monthly charge remained the same.
Napa Recycling & Waste Services’ trash collection 35-gallons monthly charge increased 4% and 65-gallons monthly charge increased 1%.
In the instances where utility allowances increased, there would be a corresponding increase in the amounts of rental assistance paid by the Housing Authority on the households’ behalf. In these cases, the households will be provided proper notice of their decreased portions of rent. The updated Utility Allowance is applied at the household’s annual recertification for the Section 8 Housing Choice Voucher Program or if the household relocates to another unit. There would be no change to the tenants’ or to the Housing Authority’s housing payments for households whose utilities are entirely paid by their landlords.
FINANCIAL IMPACTS:
The proposed action would be implemented utilizing funds within the current adopted budget for the Section 8 Housing Choice Voucher Program. It is estimated that, overall, the adoption of the revised utility allowances would not significantly change the total rental assistance payments made by the Housing Authority.
CEQA:
The City Manager has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Utility Allowance Schedule
NOTIFICATION:
Notice of this agenda item was posted 72 hours in advance of the meeting