### Question
How is the term surplus cash flow defined?


### Answer
The term **surplus cash flow** is defined in *42 U.S.C. § 12802* as the following:

> the cash flow of the project after the payment of all amounts due under the first mortgage, operating expenses, and required replacement reserves, as determined by the participating jurisdiction

#### Citation:
  - *42 U.S.C. § 12802*
  - Heading: **CHAPTER 130-NATIONAL AFFORDABLE HOUSING > SUBCHAPTER II-INVESTMENT IN AFFORDABLE HOUSING > Part D-Specified Model Programs**

