Vanessa, this seems to be an area with little to no guidance.  Here is the relevant Q&A from the Covid-19 Q&A.  As you can see they will approve the use of reserves to pay for debt service.  However, it is silent with regard to repayment.  Here is my take.  Since the use of the funds has been approved, I see no reason why it should reduce surplus cash. In general, you are only required to reduce surplus cash when all payment have not been made. I assume, that all payments were made and there is no deficit in the calculation from S1000-020 and the Reserve schedule.

Q11: Can property owners with FHA-insured mortgages with reserve for replacement accounts access those funds to pay debt service? Office of MFH Programs COVID-19 Q&A 10

A: Owners should request any reserve for replacement account releases from their Account Executive and local field office using the form HUD-9250. The request should include evidence of the causes of the cash shortfall and a promise to repay the funds to the reserve for replacement account. HUD field staff will expeditiously review such requests and consider the cash flow of the property, the amount in the reserve account, and the borrower’s current compliance with HUD’s business agreements.