Current through 2024-38, September 18, 2024
A. Annual Review.
The Owner is responsible for gathering information and data
necessary for the performance of an annual review of the projected Energy Costs
for each unit and to compare the results of such annual review with the
Baseline for each unit. Based on the results of each annual review and Baseline
comparison, the Owner must annually recommend a Utility Allowance for each unit
and unit type. The recommended Utility Allowance must represent the Owner's
best estimate of Energy Costs for that particular unit type. The recommended
Utility Allowance is not intended to equal all utility costs but rather it is
intended to equal an amount necessary to reimburse to the tenant an amount
equal to the Energy Costs for that particular unit type. If the results of an
annual review require a Baseline adjustment, the Owner must submit to MSHA a
summary containing certain information, including, but not limited to, the
following information supporting the proposed Baseline change (increase or
decrease), and the Owner must receive MSHA approval prior to implementing the
proposed Baseline change:
1
description of the type of utilities covered by the Utility
Allowance;
2 statement of whether
any utility rate increase or decrease took effect during the past 12 months or
is expected to be implemented in the next 12 months and the amount of those
increases or decreases; and
3
statement of how any energy conservation initiatives have or will impact energy
consumption.
B. Utility
Allowance Adjustments; Tenant Notice.
1 If at
any time throughout the year the Owner determines that there has been a change
in applicable Energy Costs, or there have been changes in the costs of other
utilities which would result in a 10% or greater increase or decrease in Energy
Costs, 5% or greater where the increase or decrease includes heating costs, as
compared to the Utility Allowance currently in effect, the Owner shall notify
MSHA of such changes and upon receipt of MSHA approval make necessary Utility
Allowance adjustments in accordance with any MSHA directive and only after the
delivery of any tenant notice as may be required by this Rule.
2 In all cases, tenants must be given at
least thirty (30) days prior written notice of any change in the amount of
his/her rental payment and Utility Allowance, if applicable. Such notice should
include a brief explanation as to how the new amount was calculated, and a
request for comments by the tenant. Such comments shall be reviewed by the
Owner and the Owner shall provide an appropriate written response to the
tenant. Prior to the implementation of any such change the Owner shall submit a
written request for revision to MSHA along with copies of any supporting
documentation including tenant comments.
C. Change in Responsibility for Payment of
Utilities; Heating System Conversion.
1 Upon
MSHA's approval, the Owner may convert from tenant-paid utilities to Owner-paid
utilities after initial project occupancy where the highest cost utility is
paid by the tenant. In such cases MSHA may require the Owner to engage the
services of a certified engineer to conduct an energy audit in accordance with
all applicable state recommended standards and/or codes for multi-family
developments. The audit will include comprehensive data including but not
limited to actual usage data for the previous 12 months for each unit and
projected utility usage for each unit. MSHA may require a heating system
conversion where such audit shows that actual energy usage for the project
exceeds 120% of that which is determined to be reasonable by comparison to the
energy usage of comparable projects.
2 In those cases where MSHA has approved a
post-occupancy change in the responsibility for the payment of utilities or a
heating system conversion, the Owner must provide notice to the tenants at
least 60 days prior to such change or conversion outlining the specifics of the
proposed change or heating system conversion. If the effective date of the
adoption of the change in responsibility for payment of utilities is other than
the lease renewal date and the current lease does not provide for such change
in responsibility, such notice must also state that any tenant may decline to
execute any document seeking to shift the responsibility for utility payments
prior to the lease renewal date.
3
MSHA recommends that the Owner hold a meeting of all affected tenants to
discuss the proposed Utility Allowance change forty-five (45) days prior to
implementation of the proposed change or start of any heating system
conversion. The Owner shall retain all tenant comments and Owner
recommendations in their files for a minimum of three (3) years.
4 Tenants must be provided a new lease or
lease amendment reflecting any change in the responsibility for utility
costs.
5 Insofar as possible, any
change in responsibility for payment of utilities between Owner and tenant
shall take place between the months of May and September.
