The Trainer — November 2015

Requesting Withdrawals from Residual Receipts Account

In this month’s feature, we discussed how HUD requires many owners of nonprofit and limited-dividend sites with HUD-insured and HUD-held mortgages to set up residual receipts accounts. If you have such an account, there may come a time when you need to ask HUD to let you withdraw money from the residual receipts account to help you cover operating expense deficits that your rental revenue won’t cover. Your residual receipts may be a source of funds to make up for a cash shortfall.