Finding Text
2023-2 Excess Residual Receipts Not Remitted to HUD
Condition: The Project did not reduce its housing assistance payments by the amount needed to reduce
the residual receipts account to the acceptable limit.
Criteria: Notice H 2012-14 allows owners to retain an initial reserve balance up to $250 per unit to be used
for project purposes to the extent to which Residual Receipts are available, also known as the “retained
balance”. According to HUD, the Residual Receipt balance in excess of $250 per unit must be applied on
a monthly basis to offset the HAP contract and must continue until the Residual Receipt account reaches
the retained balance level.
Cause: The cause is undeterminable.
Effect: Residual receipts balance is $11,430 as of December 31, 2023. The allowable balance is $7,250
($250 X 29 units), resulting in excess residual receipts of $4,180.
Recommendation: I recommend the Property begin reducing HAP payments to bring the residual receipts
account to an acceptable level, according to HUD rules and regulations.