Property Management Practices Flashcards

Under HUD's grievance procedure requirements, a resident of an assisted property who disagrees with a management decision must be provided the opportunity to request an informal hearing within how many days of receiving written notice?

Answer: 14 days

HUD requires that residents be given at least 14 days to request an informal grievance hearing after receiving written notice of a management action affecting their tenancy.

A property manager is preparing the property's Annual Budget. Which of the following is typically categorized as a Capital Expenditure rather than an Operating Expense?

Answer: Replacement of all HVAC units throughout the property

Replacing all HVAC units is a major capital expenditure that extends the property's useful life, as opposed to routine operating expenses.

Which federal program requires multifamily property owners to adopt and implement an Affirmative Fair Housing Marketing Plan (AFHMP)?

Answer: HUD-assisted multifamily housing programs receiving federal subsidies

HUD requires owners of federally assisted multifamily housing to develop and implement an AFHMP to reach households who are least likely to apply for housing.

A resident's monthly gross income is $2,400. They have no deductions. What is their Total Tenant Payment (TTP) based on the 30% of adjusted income formula?

Answer: $720

30% of $2,400 monthly gross income equals $720, which would be the TTP when no deductions apply and adjusted income equals gross income.

Under HUD's physical standards, a property with a REAC score below what threshold is considered 'troubled' and may face increased oversight?

Answer: Below 60

A REAC physical inspection score below 60 generally designates a property as 'troubled,' triggering enhanced HUD oversight and a required corrective action plan.

When a property manager suspects lead-based paint hazards in a pre-1978 unit with children under age six, which federal regulation governs the required disclosure and response?

Answer: HUD/EPA Lead Disclosure Rule (24 CFR Part 35)

HUD/EPA Lead Disclosure Rule (24 CFR Part 35) requires property managers to disclose known lead-based paint hazards and take corrective action in pre-1978 federally assisted housing.

A property manager is calculating Net Operating Income (NOI). Which formula correctly represents NOI?

Answer: Effective Gross Income minus Operating Expenses

NOI equals Effective Gross Income (all revenue after vacancy and credit losses) minus all operating expenses, excluding debt service and capital expenditures.