Residual Receipts

The requirement for a Residual Receipts Account is established by a Regulatory Agreement or a project –based subsidy contract such as Section 8 Housing Assistance Payments.  The Residual Receipts account is a holding account for the amount of any net earnings in any one fiscal year that are not allowed to be distributed.  Residual Receipts funds may be used for a variety of acceptable purposes subject to MHDC’s approval.   Any excess of surplus cash over the unpaid earned distributions must be deposited by the project into an MHDC approved account within the time period specified by the Regulatory Agreement, but no later than 90 days after the project’s fiscal year-end.