Not only does the cost of energy burden the poor, it affects the
whole Department and its ability to administer its programs.
Public Housing Utilities Cost More than $1 Billion per Year
Total HUD outlays for energy costs for fuels in 1,276,000 public
housing units were
approximately $1,154 billion in 1999. Of that amount, $308 million
was spent on water costs.
Total Utility Expenditures for Four Quarters Ended 12/99
Total Expenditures $1,154 Billion (all dollar amounts in millions)
Source: 12/99 SORE Summary as of 4/27/2000
Section 8 Rental Support Includes More Than $2 Billion per Year
for Utilities
Section 8 certificate and voucher programs now serve 1.6 million
households. The program is administered by more than 2,500 State
and local housing agencies. Another 1.4 million households that
live in HUD-assisted, privately owned housing also receive Section
8 assistance allocated directly to that housing.
Families are responsible for finding their own housing, where the
rent must be comparable to rents of similar, modest, unsubsidized
housing units in the area. Families generally pay 30 percent of
their adjusted income toward rent. Section 8 assistance makes up
the difference between their contribution and the actual cost of
the unit. HUD has interpreted rent to include costs
for reasonable utility consumption. When a household pays a utility
company directly, the household receives a reduction in rent, called
the utility allowance, to cover the expected cost of reasonable
utility consumption.
Based on utility costs in public housing, we can estimate that
the total utility cost for Section 8 units is approximately $2.5
billion.
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