| What is HUD doing About It? |
| Letter to DERA From U.S. Department of Housing and Urban Development Office of Public and Indian Housing Washington, DC 20410-5000 Received August 13, 2009 |
| DERA Fights For You (Douglas Energy Relief Association) |
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On behalf of Secretary Donovan, thank you for your letter of April 23, 2009, in which you
informed the Department of your concerns that the Douglas, Georgia Public Housing
Authority (DGPHA) may have miscalculated tenant's utility allowances, thereby tenants
may have been overcharged Total Tenant Payment (TTP) amounts. In addition, you
stated that DGPHA was not following the provisions contained in 24 CFR 965,
regarding required energy audits and utility allowance schedules.
In 2006, the Atlanta Field Office conducted an on-site review of DGPHA utility
allowances and schedules and discerned that the DGPHA had not conducted an
energy audit as required by 24 CFR 965.302, nor had the Public Housing Authority
(PHA) reviewed its utility allowance schedule as required by 24 CFR 965.507(a). As a
result of the review by the Atlanta Field Office, the DGPHA conducted the required
energy audits, updated the utility allowance schedule to recalculate tenant rents for all
current and past residents that were impacted by the overpayments and is in the
process of reimbursing them accordingly.
Utility allowance schedules are not subject to Departmental review before becoming
effective, but will be reviewed in the course of audits or reviews of the PHA operations.
The provisions contained in 24 CFR 965 require PHAs to complete an energy audit not
less than once every five years. The PHA is also required to annually review the basis
on which utility allowances have been established. The Department is currently in the
process of revising 24 CFR 965. During the revision process, the regulation will be
placed in the Federal Register for review and public comment. All comments received
will be considered for possible inclusion in the revision of the regulation. We are also
revising the Utility Allowance Guidebook.
Thank you for your interest in the Department's programs. If I can be of further
assistance, please let me know.
Sincerely,
David A. Vargas
Associate Deputy Assistant Secretary
Office of Public Housing and Voucher Programs
informed the Department of your concerns that the Douglas, Georgia Public Housing
Authority (DGPHA) may have miscalculated tenant's utility allowances, thereby tenants
may have been overcharged Total Tenant Payment (TTP) amounts. In addition, you
stated that DGPHA was not following the provisions contained in 24 CFR 965,
regarding required energy audits and utility allowance schedules.
In 2006, the Atlanta Field Office conducted an on-site review of DGPHA utility
allowances and schedules and discerned that the DGPHA had not conducted an
energy audit as required by 24 CFR 965.302, nor had the Public Housing Authority
(PHA) reviewed its utility allowance schedule as required by 24 CFR 965.507(a). As a
result of the review by the Atlanta Field Office, the DGPHA conducted the required
energy audits, updated the utility allowance schedule to recalculate tenant rents for all
current and past residents that were impacted by the overpayments and is in the
process of reimbursing them accordingly.
Utility allowance schedules are not subject to Departmental review before becoming
effective, but will be reviewed in the course of audits or reviews of the PHA operations.
The provisions contained in 24 CFR 965 require PHAs to complete an energy audit not
less than once every five years. The PHA is also required to annually review the basis
on which utility allowances have been established. The Department is currently in the
process of revising 24 CFR 965. During the revision process, the regulation will be
placed in the Federal Register for review and public comment. All comments received
will be considered for possible inclusion in the revision of the regulation. We are also
revising the Utility Allowance Guidebook.
Thank you for your interest in the Department's programs. If I can be of further
assistance, please let me know.
Sincerely,
David A. Vargas
Associate Deputy Assistant Secretary
Office of Public Housing and Voucher Programs
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