Subject: TDHCA: Changes to Utility Allowance Regulations [MFC] [HTC]

The Internal Revenue Service (IRS) released Notice 2009-44 on May 5, 2009, amending Treasury Regulation §1.42-10.

The Notice clarifies that the utility costs paid by a tenant based on actual consumption are included in a utility allowance. Utilities paid to or through the owner of the building based on an allocation method or RUBS are considered a mandatory fee and not included in the allowance.

Please see http://www.tdhca.state.tx.us/pmcdocs/09-Memo-IRS2009-44.pdf and http://www.tdhca.state.tx.us/pmcomp/utility-allowance.htm for additional information.
Contact Stephanie Naquin at mailto:stephanie.naquin@tdhca.state.tx.us or by phone at (512) 657-5528 for more information.