What We Do
Hedgerow provides HUD Utility Allowance Studies for owners and management companies to determine whether there is potential for savings from the amount mandated by the PHA (Public Housing Authority) or HUD. We perform these studies a number of ways, and have expanded our service line to support the full lifecycle of utility allowance compliance:
Engineering Based Approach (Option E) — We simulate the building and its energy use, applying current utility provider rates, to arrive at a defensible, code-compliant estimate of anticipated utility costs. This approach follows the Option E / HUD User Submetering Model (HUSM) methodology under 26 CFR §1.42-10 and HUD Notice H 2015-04.
Consumption Based Approach — We analyze actual resident billing data over a 12-month period to calculate an average utility cost per unit type, reflecting real-world usage patterns.
Free Portfolio Utility Allowance Audit — We perform a no-cost audit of every property in your portfolio to identify whether an Engineering Based Approach would produce a more favorable allowance than the current PHA-published figures. Read about a recent portfolio audit here.
Benchmarking for Buildings — We track a building's energy and water usage against a standard metric (ENERGY STAR Portfolio Manager) to evaluate its efficiency over time and benchmark it against peer properties nationwide. This service now includes support for state and local Building Energy Performance Standards (BEPS) compliance, including Maryland's BEPS reporting requirements.
RAD Conversion & Post-Rehab Utility Allowance Studies — We support owners converting properties through RAD (Rental Assistance Demonstration) or completing substantial rehabilitation, addressing the utility allowance amendments and CHAP-related documentation these transitions require.
HCV / Section 8 Utility Allowance Studies — Beyond LIHTC properties, we prepare utility allowance schedules for Public Housing Authorities administering the Housing Choice Voucher program.
Statewide & Multi-Agency Utility Allowance Studies — We take on large-scale engagements spanning dozens or even hundreds of counties for state housing finance agencies, in addition to property-level studies.
Pre-Submission Compliance Review — For clients with large, active portfolios, we offer a review service ahead of formal PHA or HFA submission to catch documentation or methodology issues before they become compliance findings.
Hedgerow is an approved Engineering Professional with the Maryland Department of Housing & Community Development, Virginia Housing (VHDA), the DC Department of Housing and Community Development (DHCD), and the North Carolina Housing Finance Agency, deemed qualified to calculate utility allowances under the Federal Low-Income Housing Tax Credit program (26 CFR §1.42-10). Our team holds RESNET and LEED AP credentials and works across multi-state, multi-agency contexts — including HUD PBCA, state HFAs, and PHAs nationwide.
