To: Honorable Chair and Commissioners
From: Molly Rattigan, Deputy Executive Director
Prepared By: Kasey Lyons, Housing Supervisor
TITLE:
Title
Section 8 Utility Allowance Schedule 2026
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RECOMMENDED ACTION:
Recommendationle
Adopt a resolution approving the revised Utility Allowance Schedule for the Section 8 Housing Choice Voucher Program effective November 1, 2026.
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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, 2025.
Because calculating utility allowances requires 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, electricity, 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. Staff provide information regarding the CARE Program to new voucher holders to ensure participants are aware of this resource.
The proposed rates also reflect the California Climate Credit provided through Pacific Gas & Electric. The credit is applied twice annually, in April and October, to eligible residential electric customers’ bills and offsets a portion of their electricity costs. The California Climate Credit is part of the State’s efforts to reduce greenhouse gas emissions.
The analysis conducted showed utility rates changed from 2025 to 2026 as follows:
ELECTRIC - Pacific Gas & Electric’s tier-1 and tier-2 rates decreased 16%, and the Climate Credit decreased 38% from $9.71 to $6.03.
NATURAL GAS - Pacific Gas & Electric’s natural gas tier-1 rates increased 5%, tier-2 rates increased 4%, and the Climate Credit decreased 31% from $5.59 to $3.86.
BOTTLE GAS/PROPANE - Napa Valley Petroleum’s propane fuel increased 5%.
WATER, SEWER & TRASH COLLECTION - The City of Napa’s Multi-Family water rate increased 9% and the monthly service charge increased 10%. Single-Family tier-1 water rates increased 9%, tier-2 rates increased 61%, and the monthly service charge increased 10%. Napa Sanitation District sewer rates increased 9% for Multi-Family service and 4% for Single-Family service. Napa Recycling & Waste Services’ monthly charge for 35-gallon and 65-gallon trash collection remain unchanged.
Where utility allowances increased, households will generally see a corresponding decrease in their tenant rent portion, and the Housing Authority’s rental assistance payments will increase. The revised utility allowances will be applied to existing households at their next annual recertification and to new leases in accordance with program requirements. 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