Question and Answer: Property Utility Allowance

Question Our property has a utility allowance. Some of our tenants do not pay any portion for their tenant rent. They receive a utility reimbursement check. Can we apply those funds to outstanding tenant balances instead of issuing the resident the utility reimbursement check.
Todd – Wisconsin

Answer No. Management is not permitted to apply a utility reimbursement check, earmarked for utility expenses, to back rent or other tenant balances. Per Section 7.13 of the MAT User Guide, management must disburse these funds to the tenants within 5 business days of receipt of the HAP payment. With both the tenant and provider’s consent, the property also has
the option to forward these funds directly to the utility provider.

Keep in mind, the utility reimbursement is a part of the assistance payment. The intent is for the resident to use these funds to pay their monthly utility expenses. However, once they receive the funds, it is the resident’s responsibility to ensure the utility bill is paid.