5.1.2 Utility Allowances

Junior v. Housing Authority of New Orleans.1  A consent judgment required HANO to increase the utility allowance schedules that HANO used for its public housing tenants who had tenant-paid utilities. Any former tenant surcharged for electricity consumption after 1-1-82 and before 11-23-88 was entitled to a $250 offset against any debt owed to HANO.

Sylvester v. HUD.2  HUD and the PHA agreed in this consent judgment to increase utility allowances for tenants participating in its Section 8 Moderate Rehabilitation program. $500,000 in refunds were obtained for current and former tenants.

Desire Area Resident Council v. Housing Authority of New Orleans3 . Suit filed on behalf of public housing residents relocated from projects due to demolition or redevelopment under the Uniform Relocation Act. Basis of suit was that the displaced tenants estimated average utility costs had increased under the Section 8 programs or other housing to which they had been relocated because the PHAs’ utility allowances were too low. As a result of the litigation, the PHA raised its utility allowances to appropriate levels and provided monetary relief to tenants for the difference between the estimated average of utility costs and the inadequate utility allowances.

Johnson v. Housing Authority of Jefferson Parish.4  Suit filed based on parish’s failure to adjust utility allowances though utility costs had increased more than 10% since the last adjustment. Fifth Circuit reversed the district court and held that the HCVP rent provisions create enforceable rights. Case later settled with adjustments to allowances.

• 1No. 88-2172 (E.D. La.), 22 Clearinghouse Rev. 1302 (1989).
• 2No. 88-1134 (E.D. La.), 25 Clearinghouse Rev. 1382 (1992).
• 3No. 01-1458 (E.D. La).
• 4442 F.3d 356 (5th Cir. 2006).