Examples of Utility Allowance in a sentence
Net Program Rent‐‐Calculated as Gross Program Rent less Utility Allowance.
As part of the Project Budget, the Offeror’s proposal shall include the following: Building Permit Fee Allowance ($45,000.00), Utility Allowance ($50,000.00), and an Owner’s Directed Allowance ($255,000.00).
The Utility Allowances provide an estimate of the average monthly cost for utilities that the family can expect to pay.The Utility Allowance is NOT meant to determine the EXACT cost of the family’s monthly utilities but only serves as an estimation of the cost per month.
In addition, considering the Utility Allowance also helps to determine the reasonable rent for the unit (i.e. if the landlord is paying ALL utilities then a proposed higher rent is more reasonable).Before a Request for Tenancy Approval can be considered the owner should advise the agency of the following:-Which party (owner/tenant) will be responsible for payment of the utilities.
The Utility Allowance is considered when examining the Request for Tenancy Approval because the agency must ensure that the tenant can afford BOTH their rent portion as well as the utilities for the unit.