Exhibit A-6 to Subpart E of Part 1944 - Housing Allowances For Utilities And Other Public Services

Effective Date Name of Borrower Location and Identification of Project Part I Utility or serviceMonthly dollar allowancesO-BR1-BR2-BR3-BR4-BR5-BRHeating:a. Natural Gasb. Bottle Gasc. Electricd. OilAir ConditioningCooking:a. Natural Gasb. Bottle Gasc. ElectricOther electric lighting, refrigeration, etc.Water Heating:a. Natural Gasb. Bottle Gasc. Electricd. OilWaterSewerTrash CollectionOther (specify)Total allowance(Round to next highest dollar) Prepared by: Borrower or Agent Title Signature Date Approved by Farmers Home Administration or its successor agency under Public Law 103-354 Name Title Signature Date Part II Block A To: Name of Tenant Address of Tenant No. of Bedrooms

You will be billed directly for utilities and service charges. Block B sets forth the allowances credited in your rent for the payment of utilities. You may be billed for more or less than shown in Block B depending on your use of utilities

Signature of Borrower or Agent (Date) Block B Allowance for utilities and services billed directly to and paid by tenantPer monthHeating$Air ConditioningCookingOther ElectricWater HeatingWaterSewerTrash CollectionOther (Specify)Total (Round to next highest dollar) Instructions for Preparation and Use of Housing Allowances for Utilities and Other Public Services

I. General. These instructions are for completing exhibit A-5 for the establishment and use of approved utility allowances for tenants. The objective will be to establish allowances at levels that will apply to the majority of the households assigned to the specified size unit.

II. Determining allowances.

A. Existing construction. The borrower will provide information which shows the utility bills and fees for public services which have been charged to units in the project in previous years. If possible, this historical data should cover a period of at least 24 months and should show billings to all types and sizes of units in the project. If data is not available on the specific project, data from similar projects may be substituted. Consideration should be given to making proper adjustments in the data caused by some tenants' excessive use of utilities. Current rate schedules and known rate increases will be used to estimate utility allowances. The following local sources should be contacted as appropriate:

1. Electric utility suppliers.

2. Natural gas utility suppliers

3. Water and sewer suppliers.

4. Fuel oil and bottle gas suppliers.

5. Public service commissions.

6. Real estate and property management firms.

7. State and local agencies including public housing authorities.

In cases where a project uses a single meter for more than one living unit or where a single fuel supply or heating or cooling plant is used for more than one unit, the following factors will be used to determine the pro rata share of utility costs or public service fees per living unit:

Size of unitFactor0-BR0.51-BR0.72-BR0.93-BR1.14-BR1.45-BR1.6 Example:

An 8-plex structure containing four 1-bedroom apartments and four 2-bedroom apartments has an average annual consumption of 42,000 kilowatt-hours of electricity. Allowance per unit is calculated as follows:

Four (one-bedroom) @ .7=2.8Four (two-bedroom) @ .9=3.6Total6.4Total use total of factors __ × cost per kilowatt-hour (kwh)-average billing (assume $.04 per kwh)42,000/6.4×.04=262.50unit factor×average billing=−unit allowance(one bedroom)/.7×262.50=$183.75/yr.(two bedroom)/.9×262.50=$236.25/yr.

B. New construction. The applicant, with assistance from its architect, mechanical engineer or other heating and cooling system specialists, will provide heating and cooling load calculations for each type and size of unit. Heating and/or cooling costs will be calculated from these load factors using current rate schedules and known rate increases. Procedures described in the American Society of Heating, Refrigeration and Air Conditioning Engineers “Handbook of Fundamentals,” the National Association of Homebuilders “Insulation Manual Home, Apartments,” or other recognized authority may be used.

General appliance and lighting loads and fees for public services should be estimated using data from the local utility companies and from other sources listed in paragraph II A above.

C. Type of allowance.

1. Separate heating and cooling allowances will be estimated for the various types of multiple family housing financed by FmHA or its successor agency under Public Law 103-354 in the project. For example, separate allowances may be needed for duplexes, row or townhouses, or for garden and low and medium rise apartments. In addition to establishing different heating and cooling allowances for various types of structures, attention should be given to different allowances for water depending on whether the tenants will have responsibility for lawn care.

2. Allowances for air-conditioning will be established only for projects in which the owner furnishes a central air-conditioning system or other type unit as a part of the permanent equipment.

3. The cost of gas and electricity varies according to amounts consumed as shown on the appropriate rate schedules of the supplier. It is not possible to compute exactly the cost of electricity for any given function without knowing the total electrical usage for a unit. However, because neither the borrower nor the tenants know beforehand what the combination of utilities for any unit rented will be, it will be necessary to approximate the allowances for each function (e.g., heating, cooking, etc.) as follows: For electricity, the rates used for lighting, refrigeration and appliances should be from the top of the rate schedule or the higher unit costs. Allowances for electric cooling, water heating and space heating should be computed from the middle or lower steps in the rate schedules. Similarly, allowances for gas used for water heating and cooking should be computed using rates from the top of the rate schedule and for heating from the lower steps.

III. Preparation by borrower or applicant.

A. Applicable projects. Except for projects operating on a profit basis, exhibit A-5 will be completed in an original and three copies in all instances where the tenants pay utilities or authorized services directly. When the borrower pays all utilities, part I of exhibit A-5 may also be required as part of the budget submitted for any new project if the loan approval official determines it is needed to properly evaluate projected utility costs. This form will establish the allowances for all size units in the project. The allowances will be adequate for all utilities and any authorized services which are or will be payable directly by the tenants, except telephone and cable TV. The forms will be signed by the borrower. The original and two copies of the form will be submitted to FmHA or its successor agency under Public Law 103-354. Backup data and necessary documentation should be included with the submission.

B. Submission of supporting data to FmHA or its successor agency under Public Law 103-354. The applicant will submit to FmHA or its successor agency under Public Law 103-354 adequate data to justify the utility allowances for the project. The data will include the following:

1. Completed exhibit A-5.

2. List of local sources contacted for information and copies of any data provided by such sources.

3. Any data on allowances already established for the area.

4. Complete narrative statement and computations on method used in arriving at the allowances.

IV. Actions by FmHA or its successor agency under Public Law 103-354. If FmHA or its successor agency under Public Law 103-354 finds the allowances acceptable, the approval portion of part I will be completed. The servicing official will keep a copy for the servicing office file and return the original to the borrower. If the proposed utility allowance is unacceptable, the borrower will be requested to revise the data and resubmit it for further consideration.

V. Subsequent action by borrower. After approval by FmHA or its successor agency under Public Law 103-354, the borrower will complete part II of exhibit A-5 and provide copies for each tenant paying utilities directly by attaching it to the lease entered into by the borrower and tenant. The form will provide the household with the amount of allowance for each utility and service which is to be paid by the tenant. If all utilities and services are paid by the borrower, exhibit A-5 need not be attached to the lease.