Formula Used
Total Cash = Operating cash + petty cash + tenant security deposit cash + deposits in transit + other eligible cash.
Total Current Obligations = Mortgage interest + delinquent principal + reserve deposits + accounts payable + short term notes + escrow deficiency + accrued expenses + prepaid revenue + security deposit liability + other obligations.
Surplus Cash = Total Cash - Total Current Obligations.
Distribution Earned = Initial Owner Equity × Distribution Rate, unless manual or residual only settings are selected.
Distribution Earned But Unpaid = Distribution Earned + Prior Unpaid Distribution - Distributions Already Paid.
Allowable Owner Distribution = The lower of available surplus cash after special items and distribution earned but unpaid.
Residual Receipts Due = Remaining surplus after owner distribution × residual receipts split percent.
How To Use This Calculator
Enter the project name, period end, and calculation period.
Add cash balances that are eligible under the project documents.
Enter current obligations that must be deducted from cash.
Select the distribution method that matches the agreement.
Enter equity, rate, manual distribution, prior unpaid amount, and paid distributions.
Add special items, if restructuring payments or incentive fees apply.
Use the residual receipts split field for required deposits.
Press calculate. The result appears above the form.
Use CSV or PDF export for workpaper review.
Understanding HUD Surplus Cash
HUD surplus cash is a controlled measurement. It is not the same as bank profit. The calculation asks a direct question. Does the project have cash left after eligible current obligations are covered? This answer matters because many regulated properties cannot distribute funds freely. The regulatory agreement, audit guidance, loan documents, and management records should be reviewed before money leaves the project.
What The Calculator Reviews
This calculator groups inputs into cash, obligations, and distribution controls. Cash inputs may include operating funds, petty cash, deposits in transit, and other eligible balances. Obligation inputs may include mortgage interest, delinquent principal, reserve deposits, accounts payable due soon, accrued expenses, escrow deficiencies, prepaid revenue, and security deposit liabilities. The tool then subtracts obligations from cash. A positive answer shows possible surplus cash. A negative answer shows a deficiency.
Distribution Control
Surplus cash does not always mean full owner availability. Some agreements limit distributions by an earned amount. Others require deposits to residual receipts. Some projects include restructuring payments, incentive fees, or split percentages. This calculator provides optional fields for those cases. It also shows a cautious allowable distribution. This helps users compare cash availability with distribution limits.
Practical Use
Use accurate books before entering amounts. Reconcile bank accounts. Confirm payables that are due within the required period. Check whether escrow deposits are deficient. Verify prior unpaid distributions and amounts already paid. Do not include restricted money unless the agreement allows it. When uncertain, keep the item out or ask the project accountant.
Common Review Mistakes
Common mistakes are easy to miss. Teams sometimes count restricted cash as available cash. They may also forget unpaid expenses, escrow shortages, or reserve obligations. Another issue is using a distribution limit before checking real cash. A clean worksheet reduces these errors. It keeps every assumption visible for managers, owners, auditors, and lenders.
Review Value
The result can support internal review, budget discussion, and audit preparation. It can also show why a distribution may be blocked. The CSV and document exports help keep a record of inputs. The example table gives sample cases for testing. The calculator is a planning aid only. Final distribution approval should follow the signed regulatory agreement and professional review.
FAQs
What is HUD surplus cash?
HUD surplus cash is the amount left after eligible cash is reduced by current obligations. It helps determine whether money may be distributed, deposited, or retained.
Is positive surplus cash always distributable?
No. A regulatory agreement may limit distributions. Residual receipts rules, unpaid obligations, restructuring payments, or prior distributions can also reduce availability.
Which cash accounts should I include?
Include only eligible cash accounts allowed by project documents. Operating cash, petty cash, and certain deposit balances may apply. Restricted funds need careful review.
Which obligations are deducted?
Common deductions include accrued mortgage interest, delinquent principal, payables due soon, reserve deposit shortages, escrow deficiencies, prepaid revenue, and security deposit liabilities.
How is the owner distribution estimated?
The calculator can use an equity rate, manual earned distribution, full available cash, or no owner distribution. The selected method controls the limit.
What are residual receipts?
Residual receipts are remaining funds that may need deposit after allowable distributions and special payments. Some projects require all remaining surplus to be deposited.
Can I export the calculation?
Yes. Use the CSV button for spreadsheet review. Use the PDF button for a simple workpaper copy.
Is this final audit approval?
No. This tool supports planning and review. Final approval should follow the signed agreement, current books, audit requirements, and professional guidance.