Finding Text
2023-1 Excess Residual Receipts
Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds.
Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD’s Accounting Center upon termination or renewal of the PRAC contract.
Cause: The cause is undeterminable.
Effect: Residual receipts balance is $17,507 as of December 31, 2023. The allowable balance is $5,250 ($250 X 21 units), resulting in excess residual receipts of $12,257.
Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD.