See the Help document #285.
When a portion of the rent is subsidized by HUD, it can be handled in any of the following ways.
Set up a separate tenant profile for the HUD tenant. Use an ID of HUD-Tenant ID or Tenant ID-HUD. Enter the amount of rent for the HUD tenant in that profile and the amount of rent for the other tenant in his profile. If the HUD portion does not need to be included on the 1099, set up a charge code and an account code (account type = Income) of Rent-HUD. Otherwise, use the regular Rent charge code. When payment is received from HUD, post the payment to the HUD-Tenant ID.
Disadvantages – none
2.
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Set up the HUD portion of rent as a Recurring Charge in the Tenant’s profile. Post recurring charges at the same time you assess rent. When payment is received from HUD, make sure it applies against the recurring charge.
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NOTE: If you want to charge late fees to the tenant for his unpaid portion, set up a new charge code for Rent-HUD (mark the "Not subject to late fees" checkbox). If the HUD portion does not need to be included on the 1099, set up an account code with an account type of Income and point it to that account code. Otherwise point it to Rent.
Disadvantages – HUD portion doesn’t show on rent reports when Rent-HUD is used. Late charges are not always accurate.
3.
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Set up the tenant profile so it reflects the total rent (tenant plus HUD). Indicate the payment source in the memo field of the receipt.
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Disadvantages – Late charges are not always accurate. Difficult to determine who hasn’t paid.
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