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HUD surplus cash calculator

Works through the HUD-93486 surplus cash computation line by line: cash less current obligations, then what can be distributed to the owner and what goes to residual receipts under your regulatory agreement.

HUD rules as of October 30, 2026 · Estimate, not a quote · How it works

Part A. Cash

From the balance sheet at the end of the fiscal period.

Line 1. Cash ($) Operating cash (Accounts 1120, 1170, 1191). Not escrows or HUD-required reserves.

Line 2. Tenant subsidy due ($) Housing assistance earned for the period, not yet received.

Line 3. Other ($) E.g. HUD-approved reserve draws paid from project funds, not yet reimbursed.

Part A. Current obligations

Line 4. Accrued mortgage interest payable ($) Interest due the 1st of next month (paid in arrears).

Line 5. Delinquent mortgage principal ($)

Line 6. Delinquent reserve deposits ($)

Line 7. Accounts payable due within 30 days ($) Exclude payables for approved reserve draws not yet released.

Line 8. Loans and notes payable within 30 days ($) Not the mortgage.

Line 9. Deficient tax, insurance or MIP escrow ($)

Line 10. Accrued expenses, not escrowed ($) Management fees, payroll taxes and the like.

Line 11. Prepaid rents ($)

Line 12. Tenant security deposit liability ($)

Line 13. Other current obligations ($)

Part B. Distributions

What your regulatory agreement allows

Distribution earned this period ($)

Earned but unpaid from prior periods ($)

Already paid against those amounts ($)

Surplus cash

$239,200

No distribution cap entered: all surplus cash is distributable, subject to the regulatory agreement.

(a) Total cash, lines 1 to 3: $418,500
(b) Total current obligations, lines 4 to 13: $179,300
(c) Surplus cash (deficiency), (a) minus (b): $239,200

Part B

Distributions earned and unpaid: n/a
Available for distribution to the owner: $239,200
To residual receipts (or as the agreement directs): $0

Distributions can be paid only from surplus cash, only at the times the regulatory agreement allows (annually or semiannually) and subject to its other conditions.

Estimate, not a quote. HUD, the lender and the appraisal decide the real numbers; Janover Capital is an advisor, not a lender, and is not affiliated with HUD or FHA.

Reading the results

Surplus cash is what is left after every current obligation is covered from the project's own cash. It is a balance-sheet test at the end of the period, not the year's cash flow, so a strong year can still show little surplus if payables or accrued interest are high on the closing date.

Available for distribution is the most the owner could take out for the period, if the regulatory agreement's other conditions are met. Residual receipts is the part a limited-distribution or nonprofit owner must deposit instead.

The worked example

A property ends its year with $412,000 in operating and security deposit accounts and $6,500 of subsidy due. Against it: $61,000 of accrued mortgage interest, $48,000 of payables, $22,500 of accrued expenses, $9,800 of prepaid rent and $38,000 of security deposits held. Surplus cash is $239,200. A profit-motivated owner with no cap could distribute all of it; a limited-distribution owner entitled to $50,000 for the year could take $50,000 and deposit $189,200.

How the calculator works

The lines follow form HUD-93486, Computation of Surplus Cash, Distributions and Residual Receipts. HUD's forms library currently posts the healthcare version (HUD-93486-ORCF, 03/2018). Its Part A lines 1 to 13 and their instructions are the ones used here, except line 2: the healthcare form counts Medicare and Medicaid receivables there, and the apartment form counts tenant subsidy due for the period, as housing finance agencies' copies of the apartment form show. Part B follows the apartment form's distribution lines (earned, paid, unpaid). We could not open a current hud.gov copy of the apartment version on October 30, 2026, so check the labels against the form your auditor uses.

Part A. (a) = lines 1 + 2 + 3; (b) = lines 4 through 13; (c) surplus cash = (a) − (b). A negative (c) is a deficiency.
Part B. If (c) is zero or negative, nothing is distributable. Otherwise a profit-motivated owner without a cap may distribute (c); a limited-distribution owner the lesser of (c) and distributions earned but unpaid; a nonprofit nothing, with (c) going to residual receipts.
The agreement governs. Whether and when anything can be paid, and what happens to a deficiency, is set by the property's HUD regulatory agreement and any surplus cash note, not by this worksheet.

Sources

Rules checked against these sources on October 30, 2026. HUD changes program rules by Mortgagee Letter and Federal Register notice; the lender's commitment governs any loan.

Short answers

How is HUD surplus cash calculated?

Surplus cash is the project's cash (operating accounts, tenant subsidy due for the period and certain approved reserve reimbursements) minus its current obligations: accrued mortgage interest, delinquent principal and reserve deposits, payables and notes due within 30 days, escrow shortfalls, accrued expenses, prepaid rents, tenant security deposits and other current liabilities. Escrows and HUD-required reserves are not cash for this purpose. The computation is done on form HUD-93486 with the annual financial statements.

When can an owner take distributions from a HUD-insured property?

Only out of surplus cash, at the times and on the conditions the HUD regulatory agreement sets. A limited-distribution owner is also capped at the annual distribution its agreement allows; a nonprofit owner generally cannot distribute, and its surplus goes to residual receipts.

What are residual receipts?

Surplus cash a nonprofit or limited-distribution owner may not distribute. It is deposited in a residual receipts account controlled by the lender or HUD and can be used only with HUD approval.

Own a HUD-insured property?

If surplus cash is tight because the loan carries an old MIP or rate, or you want to recapitalize, the HUD desk at Janover Capital can size a 223(a)(7), a supplemental 241(a) or a new loan against your numbers.

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