To: Honorable Chair and Commissioners
From: Steve Potter, City Manager
Prepared By: Kasey Lyons, Acting Housing Supervisor
TITLE:
Title
Section 8 Utility Allowance Schedule 2025
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution approving the Utility Allowance Schedule for the Section 8 Housing Choice Voucher Program effective November 1, 2025.
Body
DISCUSSION:
The Section 8 Housing Choice Voucher Program provides a utility allowance for tenant-paid utilities, which is factored into the calculation of the tenant’s rent portion. Federal regulations require the Housing Authority to review these rates annually. The current Utility Allowance Schedule has been in effect since November 1, 2024.
Because calculating utility allowances require specialized expertise and involves complex formulas, most housing authorities retain outside consultants to perform the calculations. The Housing Authority of the City of Napa 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 changed from 2024 to 2025 as follows:
ELECTRIC - Pacific Gas & Electric’s tier-1 rates decreased 10%,tier-2 rates decreased 10%, and the monthly credit increased 6% from -$9.20 to -$9.71.
NATURAL GAS - Pacific Gas & Electric’s natural gas tier-1 rates increased 28%, tier-2 rates increased 26%, and the monthly credit decreased 22% from -$7.12 to -$5.59.
BOTTLE GAS/PROPANE - Napa Valley Petroleum’s propane fuel decreased 17%.
WATER, SEWER & TRASH COLLECTION - The City of Napa’s water Multi-Family rates increased 13% and the monthly charge increased 12%, Single-Family rates increased 13% and the monthly charges increased 12%.
Napa Sanitation District’s sewer monthly charge increased 6% for Multi-Family rates and remained the same for Single Family rates.
Napa Recycling & Waste Services’ trash collection 35-gallon cart size monthly charge increased 33% and 65-gallon cart size monthly charge increased 21%.
Where utility allowances increased, households will see a corresponding decrease in their tenant rent portion, and the Housing Authority’s rental assistance payments will increase. These changes will be applied at each household’s annual recertification or when a household moves to a new unit. Households whose utilities are entirely owner-paid will see no changes.
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