Frequently Asked Questions
New My property has
multiple agency financing. How do I know which agency (MHDC, HUD, or Rural
Development) must approve my request? (10/24/07)
The grid below explains which agency is
responsible for processing the property’s residual receipt request.
New How do I know
if my property is required to establish a residual receipt account?
A: The following types of properties are required to establish a residual receipt account:
New How do I submit
my residual receipts request? (10/24/07)
A: Residual Receipt requests must be submitted in writing to the MHDC – St. Louis Office. Requests may be submitted at any time through out the fiscal year. All requests must state an amount and a reason on the request. Copies of invoices, cancelled checks, and pictures are required when residual receipts are use to cover expenses.
Q: New What are some acceptable purposes to utilize the funds in my Residual Receipt Account? (10/24/07)
A: Acceptable purposes include:
Q: New What is a Joint Residual Receipt Account? (10/24/07)
A: Prior to 2004, some properties were allowed to deposit their residual receipt earnings into a joint account held by MHDC and the property at the property’s bank of choice. In order to access the funds, the property needed both MHDC’s approval and check signature. Since 2004, all residual receipt accounts were required to be held by MHDC.
Q: New How do I know if I am required to make a residual receipt deposit? (10/24/07)
A: The easiest way to go to the Computation of Distributions to Owners and Required Deposit to Residual Receipts form and see if there is an amount on Line 13 – Deposit due to Residual Receipt account. Normally, this occurs when the amount available for surplus cash – Line 12 exceeds the unpaid earned distribution – Line 11. The Computation of Distributions to Owners and Required Deposit to Residual Receipts form is only required for MHDC’s mortgage/Home properties.
New When does my residual receipt deposit
need to be made by? (10/24/07)
Residual Receipt deposits need to be sent to the MHDC – St. Louis office
no later than 90 days after the project’s fiscal
Q: New What are some reasons for why my residual receipts request may be denied/delayed? (10/24/07)
A: A request may be denied/delayed for but not limited to the following reasons:
New Can MHDC pay
the vendor directly? (10/24/07)
A: Yes – The property must indicate on the
Residual Receipt request that MHDC is to pay the vendor directly. The
property must make sure the name, address, and phone number for the company
providing the work is clearly provided. Please do not assume this
information can be found on the invoice.
New Does MHDC
require lien waivers to be submitted for funds paid directly to vendors?
Yes – Lien waivers are required, but MHDC has
eliminated the lien waiver form that was required to be sent back to MHDC.
Now, MHDC’s Loan Servicing Department stamps a lien waiver on the back of
the vendor’s check, and the vendor must fill out the lien waiver prior to
New When can I
expect my request to be processed?
Residual Receipt requests are to be processed
within 20 days from the date MHDC receives the property’s request. This turn
around time should be communicated to your vendor. MHDC processes requests
in the order they are received. Turn around times should be considered in
determining how long the property holds the request before submitting it to
What does “Non-Compliance Status” mean?