| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #6996 | Closed | public | Multifamily | Les Sparks |
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We have a 232 project with an agreement dated in 2004. They overpaid their surplus cash in June of 2017. They had plenty of surplus cash for their December calculation payable in March, 2018. I realize that under the old agreement there would be a finding. I’ve heard you in your classes say that HUD does not consider this a finding anymore. Is this just for the new agreements or did they relax the requirements on the old agreements also? Thank you. |
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From Les Sparks: This is still a finding for your agreement. To have access to the more relaxed rules, they have to have an agreement dated sometime in 2014. Those newer agreements relieved the client from the distributing based on surplus cash and using the calculation to determine if too much has been distributed. So, your client is stuck with the old rules. Now, of they distributed too much in the first 6 months, but still has surplus cash in June, then the finding is much softer as there is no need to repay. Frankly, HUD will not now if they distributed too much unless you tell them as there is not schedule of the dates of the the distributions. Not saying that is should no be reported, but that is the fact. |