Surplus Cash Guidance


There is a LOT of information regarding Surplus Cash.  Here is a quick list of items to help:

The FASSUB HUD template requires that a computation of surplus cash is entered for every entity, excluding Cooperatives.  There are some entities that are not required to do a computation of surplus cash.  Phil Smallwood (retired Analyst from HUD) spoke at our 2010 Multifamily Conference.  He gave us this guidance:

You are going to have situations here where you are going to have to do computations of surplus cash even though it isn’t required and there is no restrictions on distributions. I can’t remove the computation of surplus cash but if you make a comment that distributions are not limited to surplus cash, our analysts read the notes to the financial statements. If there is a finding generated because of this they would downgrade it.

Mr. Smallwood also gave us a handout explaining which specific items are included in the computation of surplus cash.

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