HUD HCV Guidebook § 6

A PHA must24 review its utility allowance schedule annually, and must25 revise its allowance for a utility
category if there has been a change of 10 percent or more in the utility rates or fuel costs since the last
revision of the schedule. To conduct a utility allowance review, the PHA may obtain new rate schedules or
quotes from utility and fuel suppliers. These new rates can be compared with the rates previously used to
calculate the last revision to the utility allowance schedule to then determine whether an adjustment is
needed.

When a utility allowance adjustment is required, it may be calculated in the same way as the original
allowance. Revising the previously used consumption figures might not be necessary, as there is generally
very little variation in these figures over time. The new rates should be applied to the consumption figures for
the locality to calculate the revised new utility allowances.