General Instructions For Completing Form Rd 1930-7, Mfh Project Budget (Page 4 of 10) in pdf

18. RHS PAYMENT (OVERAGE). For the actual column only, the amount of overage or surcharge paid to the Agency. (Item 11, Part I,

Form RD 1944-29)

19. RHS PAYMENT (LATE FEE). For the actual column only, the amount of late fees paid to the Agency. (Item 13, Part I, Form RD 1944-

29)

20. REDUCTION IN PRIOR YEAR PAYABLES (SEE PART IV). Expenses paid during current fiscal year for previous year’ s expenses.

Itemize on Part IV.

21. TENANT RA UTILITY PAYMENTS. For the actual column only, the amount of RHS rental assistance (RA) paid to tenants for

utilities.

22. TRANSFER TO RESERVE. The amount transferred to the reserve account. This equals PART III, line 2.

23. RETURN TO OWNER. On the proposed columns, enter the amount authorized by RHS unless you have mutually agreed with the

Agency to forgo all or a part of it. For the actual column return to owner may only be taken in accordance to RD Instruction 1930-C.

24. TOTAL OPERATIONAL CASH USES. Add 16 thru 23.

25. AUTHORIZED DEBT PAYMENT (NON-RHS). Repayment of Non-RHS loans must be approved by the Agency in accordance with

RD Instruction 1930-C.

26. LONG-TERM IMPROVEMENTS. Amount authorized by the Agency for capital expenditures of a long-term nature such as exterior

painting, reroofing, repaving parking lots or adding playground equipment.

27. MISCELLANEOUS. Amount authorized by the Agency. Notate.

28. TOTAL NON-OPERATIONAL CASH USES. Add 25, 26 and 27.

29. TOTAL CASH USES. Add 24 and 28.

30. NET CASH (Deficit). Subtract 29 from 15.

31. BEGINNING CASH BALANCE. All project operating funds in the General Operating Account including any 2% initial operating

capital, and any funds in a Real Estate Tax and Insurance Escrow Account. (On the initial project budget, enter the 2% initial operating

capital contribution on line 31.) This balance does not include funds in the Reserve Account or Tenant Security Deposits.

32. ACCRUAL TO CASH ADJUSTMENT. Enter “Zero” when the cash accounting method is used. When the accrual accounting method

is used, the borrower may, with assistance of the project accountant, use this line to reconcile the accrual accounting records with the

Beginning and Ending CASH Balances.

33. ENDING CASH BALANCE.

Add lines 31 and 32.

Enter the ACTUAL COLUMN amount on line 31 of the FUTURE PROPOSED column unless it is a negative balance, then

enter zero.

The PROPOSED BUDGET column ENDING BALANCE must be a positive balance and not cause an unwarranted rent increase.

It should not exceed the total of:

(1) approximately ten percent of line 16, Part I

(2) amount held for taxes and insurance,

(3) any 2% initial operating capital (during the first 5 years or until it is withdrawn, whichever comes first)

Form RD 1930-7

Page 10

General Instructions For Completing Form Rd 1930-7, Mfh Project Budget Page 4