Gain to Lease - The Rent, Subsidy and Outside Voucher Charge Types each have a GL Account Assignment for Excess Rent. These are credited when rent and/or subsidy (or outside voucher) exceed the gross potential for a unit. This GL Account Assignment would be your GL Account for Excess Income (Gain to Lease). For example, if the gross potential for a unit is $100 and rent is billed to the tenant at $150, the GL Entry will be to debit Tenant Receivable and credit Tenant Gross Rent Potential for $100 to represent the billing of gross potential, and then there would be a GL Entry to debit Tenant Receivable and credit Excess Rent/Gain to Lease for $50 to represent the Excess Rent/Gain to Lease.
236 Excess Rent - The GL Account assignments for 236 Excess Rent cross over a few charge types. The 236 Excess Rent charge type re-classes the portion of rent billed to a tenant from Tenant Gross Rent Potential to Excess Rent Income ($50 if we use the same facts as above). When the tenant makes payment, the 236 Overage charge type will create a 236 Overage Payable open item on the subsidy side of the house. The GL Entry will be a debit Excess Rent Income and a credit to Overage Payable. According to the rules for HUD Sec 236, you only have to make payment to HUD for Excess Rent when the tenant makes payment, which is why the 236 Overage open item isn't created until then. The final 236 Excess Rent charge type is 236 Overage Retained and this charge type is used when you use the batch process in Property Manager to "Process 236 Overage" and you are allowed retain the excess rent collected from the tenant. When 236 Overage is retained the GL Entry will be to debit Overage Payable and credit Excess Rent Income, putting the retained 236 Excess Rent back to income.
Overage Payable - The GL Account assignments for Overage Payable are included in the Rent charge type and in the Overage Payable charge type. Overage Payable arises when the funding program (i.e. - USDA) does not provide subsidy. In this case, an Event/GL Entry will be created on the subsidy side that credits an Overage Payable liability and debits an Overage Income GL Account. No open item is created on the household since a physical check to the Agency is cut from your accounting application. The Rent charge Type has an Overage Income Account GL account assignment. This is the income account that is credited when Rent is Billed - debit Tenant Receivable and credit Overage Income. The Overage Payable charge type has an Overage Payable Liability account assignment and an Overage Income Account GL account assignment. When rent billed along with overage income on the tenant side, this overage payable event was created on the subsidy side with a debit to Overage Income and a credit to Overage Payable. The credit to Overage Income from the tenant side washes with the debit to Overage Income on the subsidy side, ending up with the Overage Payable amount in your liability account to offset when you cut the check to the agency from your accounting system. Many accounting setups wash the overage income through the GL Account for Subsidy Gross Rent Potential, but this can go through any income you choose.
Overage - The account assignments for Overage are included the Rent charge type and in the Overage charge type. Overage arises when the funding program (i.e. - USDA) does provide subsidy. In this case, an Event/GL Entry will be created on the subsidy side that credits Subsidy A/R with a credit balance and debits an Overage Income GL Account. An open item is created on the household since Overage due back from the Agency is netted against the Subsidy payment received from the Agency. Rent charge Type has an Overage Income Account GL account assignment. This is the income account that is credited when Rent is Billed - debit Tenant Receivable and credit Overage Income. The Overage charge type has an Accounts Receivable account assignment and an Overage Income Account GL account assignment. When rent billed along with overage income on the tenant side, this overage event was created on the subsidy side with a debit to Overage Income and a credit to Subsidy A/R. This event also creates an open item on the subsidy side. The credit generally goes to an accounts receivable account instead of a liability account because when the subsidy payment is recorded for this community, these overage open items are pulled into the payment and netted with the subsidy received. The credit to overage income from the tenant side washes with the debit to overage income on the subsidy side, ending up with a credit amount in your Subsidy A/R account to be included in the subsidy payment for this community. Many accounting setups wash the overage income through the GL Account for Subsidy Gross Rent Potential, but this can go through any income you choose.
Owner Overage - Owner Overage is an expense account where the owner has to pay USDA for overage because the tenant rent will be restricted by some other program, yet the full overage amount should still be paid. For example, assume Basic rent $400, tenant rent $450, that is, overage = $50, if the maximum tax credit rent that can be charged is $430, the overage will still be $50, but the tenant will only contribute $30 of that, so the owner must kick in $20 from to be offset from some expense account. The Owner Overage charge type has an Accounts Receivable account assignment and an Overage Expense Account GL account assignment - debit to Subsidy A/R and credit to Overage Expense for $20.