1. Brave New World: Using PBRA with LIHTC (HUD 811 & RAD PBRA)

2. Compliance Considerations for Layered Projects
Utility Allowances
Reasonable Accommodations & Modifications

3. Utility Allowances

4. LIHTC Utility Allowance Methodologies
Treasury Regulation §
Buildings assisted by the Rural Housing Service – (b)(1)
Buildings with Rural Housing Service assisted tenants - (b)(2)
Buildings regulated by HUD - (b)(3)
Other buildings
Tenants receiving HUD rental assistance - (b)(4)(i)
PHA utility allowance - (b)(4)(ii)(A)
Alternative methodologies
Local utility company estimate - (b)(4)(ii)(B)
State or local housing credit agency estimate - (b)(4)(ii)(C)
HUD Utility Schedule Model - (b)(4)(ii)(D)
Energy consumption model - (b)(4)(ii)(E)

5. Example Scenario
PHA Utility Allowance is used in the LIHTC application
Green/EnergyStar/LEED construction provides energy efficiencies not properly reflected in PHA
Approximately one year after building is placed in service, owner becomes eligible to calculate allowances using alternative methodologies that require 12-months of consumption data
New utility allowance methodologies could be available for use approximately 16 to 18 months after building has been placed in service

6. Centennial Place (Atlanta, GA)
Atlanta Housing Authority
Energy Consumption Model
All Electric with Heat Pump, Water & Sewer
1 BR - $157
2 BR - $226
3 BR - $300
All Electric with Heat Pump, Water & Sewer
1 BR - $121
2 BR - $155
3 BR - $233

7. Centennial Place (Atlanta, GA)
LIHTC Bedroom Count
Revenue Differential
1 BR – 36 units
2 BR – 53 units
3 BR – 15 units
1 BR – 36 units x $36 x 12
$15,552
2 BR – 53 units x $71 x 12
$45,156
3 BR – 15 units x $67 x 12
$12,060
$72,768 per year

8. Reasonable Accommodations

9. Accessibility Laws Fair Housing Amendments Act of 1988 (FHAA)
Requires adaptable units
Americans with Disabilities Act
Requires accessibility in public accommodations
Section 504 of the Rehabilitation Act
5% set-asides for fully-accessible
2% set-asides for audio/visual
Requires accessibility in common areas
Requires owner to pay for reasonable modifications

10. Which Laws Apply? Fair Housing Amendments Act of 1988 (FHAA)
LIHTC
HUD 811 & RAD PBRA
Fair Housing Amendments Act of 1988 (FHAA)
Americans with Disabilities Act
Fair Housing Amendments Act of 1988 (FHAA)
Americans with Disabilities Act
Section 504 of the Rehabilitation Act

11. Section 504 Applicability
Section 504 of the Rehabilitation Act and HUD’s implementing regulations at 24 CFR part 8 are triggered by the receipt of federal financial assistance. Grantees and owners participating in the Section 811 PRA program are subject to Section 504
The entire development is covered by Section 504 because of this receipt of federal funding.
This includes, for example, reasonable accommodation requirements, effective communication obligations, and ensuring program accessibility for individuals with disabilities. Covered multifamily dwellings as defined in 24 CFR part 100 must also meet the design and construction requirements of the Fair Housing Act.

12. Answer: Section 504 requires that in making an accommodation, a federally-assisted housing provider will be required to bear costs which do not amount to an undue financial and administrative burden. In application, this means that a housing provider may be required to spend money to provide legally required reasonable accommodations.
QUESTION?
What happens if providing a requested accommodation involves some costs on the part of the federally- assisted housing provider?

13. Thank you for your participation!