Residual Receipts

ID Status Date Public/Private Industry AHACPA Contact
#17671 Closed public Multifamily Les Sparks
Customer Reply

I have a Section 202 with project based section 8 that refinanced March 2020 into a 223(f) mortgage loan. This entity has a 9/30 year end.
The new mortgage DOES contain the residual receipts rider.
The surplus cash at 9/30/2021 indicated a required residual receipts deposit of roughly $14,000, The deposit WAS  made but NOT within the window (90 days I beleive), It was not made until Sept 2022, just before the current year end (the statements I am working on now)
I think I have no choice other than to report the late deposit is a finding……do you agree?

This 14k deposit created excess funds in residual receipts (excess above the $250/unit required) I am confused about the recapture (against future HAP income). Is this still in effect ? The residual receipt deposit was made so close to the year end of this fiscal year,  that there has not yet been any direction/communication from HUD  regarding the need to offset on future HAP vouchers.
Given those facts , on the 9/30/2022 statements, do  I need to make any adjustments regarding the “excess” amount sitting in residual receipts  or do I wait until HUD asks for the recapture ?

I read in Housing notice 2012-14 about recording a liability (account 2190) and offsetting expense to account (account 7190 or somewhere else I read 6890) . My initial thought is wait to record the liability and just put in the footnotes that this amount could be recaptured in the future. But I am not sure. What is your opinion ?

Les Sparks

Paige, just call me.

 

Les Sparks
AHACPA | 459 N 300 W #10 | Kaysville, UT 84037 | Phone: 801-547-0809
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From: AHACPA Support <support@ahacpa.org>
Sent: Wednesday, December 21, 2022 5:02 PM
To: les@ahacpa.org
Subject: Residual Receipts

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