Excess income is reported to HUD monthly, and a request to retain any of it must be submitted at least 90 days before the fiscal year in which the owner plans to retain it

s236.reporting.monthly_excess_income_report_and_retention_request · v1.0.0

Section 236 project owners report excess income to HUD on a monthly basis under the Monthly Report of Excess Income and Annual Report of Uses of Excess Income collection, OMB control number 2502-0086, submitted through Pay.gov. Owners are permitted to retain excess income for projects only under terms and conditions established by HUD, and an owner wishing to retain some or all of its excess income must submit a WRITTEN REQUEST at least 90 days before the beginning of each fiscal year, or at least 90 days before any other point during a fiscal year at which the owner plans to begin retaining excess income for that year. HUD uses the reported information to ensure that required excess rents are remitted to the Department or retained by the owner for project use. The 90-day lead time is the operational trap: an owner that discovers mid-year that it has excess income cannot retroactively authorise its own retention of it.

Confidence

medium

Effective from

2020-08-13

Consequence model

contract remedy

Last reviewed

2026-08-29