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Utility Allowance Modeling

95% or more of new and existing affordable housing developments use standard utility allowances developed by the local housing authority.  This topic is often misunderstood and  most developers, property owners, and property managers are leaving money on the table.

Learn how you can increase your revenue per unit significantly with an investment that will pay for itself! 

  • Prohibitive: property owners and managers are often unable to afford energy or water efficiency upgrades because of high Allowance rates.

  • Effectiveincrease your return on investment per unit, raise your property valuation, and decrease your net operating costs.

  • Burdensome: increasing utility costs mean higher Utility Allowances,  leaving developers with less capital and opportunity to provide quality affordable housing in the future.

  • Easy: our team will handle and navigate the common regulatory, administrative, and cost barriers associated with adjusting your Utility Allowance.

  • Imprecise: inaccurate Utility Allowances can place an undue financial burden on either tenants or property owners. 

  • Accurate: to ensure not only affordability but also greater net operating income for energy and water efficiency retrofits, tenant services, property improvements or additional affordable housing.

The Model

With our partner Alan Plummer Associates, Inc. (APAI), we develop utility allowance models for multifamily properties using energy consumption modeling approved in IRS regulations (26 CFR 1.42-10 - Utility allowances)The calculations made in the model are then reviewed by the relevant state agency for compliance and approval.

We include specific per unit tenant information based upon prior modeling work in multifamily dwellings.

Metrics include tenant occupancy, fixture and appliance performance specifications, and additional benchmarks identified from professional experience.

Local utility rates for electricity, water, and sewer are incorporated: including a detailed implementation of various rate tiers.

Calculated using eQuest modeling software, an industry-standard software based on the DOE-2 energy modeling protocol. Energy models take into account square footage, percent glazed area, and construction materials taken directly from architectural plans.

Energy use for domestic hot water based upon water heater performance and unique calculations of hot water use for each unit.

Utility Rates
Water and Sewer
Water Heating
Space Heating

Energy end uses such as lighting, appliances, and plug loads, are based upon accepted industry standards from the U.S. Department of Energy and utility-funded energy efficiency programs.

Energy End Uses
Our Team's Work
Our Partner
You have a choice when it comes to Utility Allowances.
Let us help you make the right one.
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