A utility analysis is required for all annual rent adjustments and HAP contract renewals for projects that have tenant-paid utilities. HUD Notice 2015-04 outlines the requirements for utility analyses. The notice can be found at the link below.
A full baseline analysis is required at least once every three years. The baseline analysis requires significant data collection to conduct a thorough analysis of utility costs for each bedroom size at the project. The notice details the minimum sample size and methodology for baseline analyses.
During the two years following a baseline analysis the owner/agent has the option of conducting a factor-based analysis that does not require any data collection from residents or utility providers. Owner/agents apply the HUD published Utility Allowance Factor for each tenant-paid utility type to their current utility allowance to determine the new allowance.
Below is HUD’s sample Excel Utility Analysis Workbook
Below are sample notification forms relating to the utility analysis process