ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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#18039 | Closed | public | Multifamily | _General Support |
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Customer Reply
Good morning! I have a property who did not have a HUD insured loan until March 30, 2022. They refinanced their non-HUD bank loan to be HUD insured only in 2022 and took two large distributions during the regulatory agreement period of 3/1/2022 – 12/31/2022 (distributions were taken in May 2022 and October 2022). The property has a 12/31 balance sheet date. They are currently operating under the 2018 regulatory agreement where two distributions during the two- six-month periods as allowed under the regulatory agreement. However, I believe the first distribution they took (May 2022) were from the refinancing proceeds of ~$127k (total distribution was ~$125k). Based on review of the regulatory agreement, it states under Section 14 paragraph a – “no distribution shall be made or taken from borrowed funds”, however based on their LP agreement they could distribute funds from a refinancing (which is I’m sure what they followed). The other distribution (~$106k) taken in October would then be permitted under the regulatory agreement. My questions from above:
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Les Sparks
Marissa, see my answers below.
Les Sparks
From: AHACPA Support <support@ahacpa.org> |
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Customer Reply
Hi Les,
Thank you for the insight!
For the proceeds actually received, the attached is all we have on what is included in the “reimbursement” to the Partnership. It does not stipulate it was to go to the owners.
Also, I’m assuming the REAC has an area in which we have to put the mid-year surplus cash calculation, but we have never had to enter it before as no other projects have taken a mid-year distribution.
From: AHACPA Support <support@ahacpa.org> |
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Customer Reply
Sound good!
Thank you!
From: Les Sparks <les@ahacpa.org> |
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Les Sparks
There is a June 30th/midyear template available in in the submission. It is always there whether used or not.
I would imagine partnership or partners would mean the same thing. Excess proceeds are always treated similarly. Just had a nonprofit with over $54 million all to the NFP itself, so the language does not bother me at all.
Les Sparks
From: AHACPA Support <support@ahacpa.org> |