Core Issue: Repayment of owner advances is restricted to surplus cash only.
Impacted Requirements: Prior HUD approval is necessary if the project lacks surplus cash.
Recommended Follow-Up: Ensure compliance by reviewing cash positions and obtaining HUD approval when needed.
Finding Text
According to HUD Handbook 4370.2, repayment of owner advances may only be made from surplus cash. Prior HUD approval is required for an owner to receive repayment when the project is in a non-surplus cash position.