Finding Text
2022-1 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: It is uncertain as to why the excess was not remitted. Effect: Residual receipts balance is $11,399 as of December 31, 2022. The allowable balance is $7,250 ($250 X 29 units), resulting in excess residual receipts of $4,149. 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.