COS COS File Documentation & Recertification Procedures 2 — Questions and Answers
Question 1: Which income verification method is considered least preferred in the HUD verification hierarchy?
- Written third-party verification
- Electronic data from government databases
- Tenant self-certification (Correct answer)
- Oral third-party verification
Correct answer: Tenant self-certification
Tenant self-certification is the least preferred verification method and should only be used when no other verification option is available.
Question 2: When household net family assets exceed $5,000, what additional calculation must the owner perform?
- Calculate 10% of total asset value as income
- Verify 50% of all listed assets
- Calculate imputed income using the HUD passbook savings rate (Correct answer)
- Report the excess assets to HUD immediately
Correct answer: Calculate imputed income using the HUD passbook savings rate
When total net family assets exceed $5,000, owners must calculate imputed income by applying the HUD passbook savings rate to the total asset value and use the greater of actual or imputed income.
Question 3: What is the purpose of the EIV Existing Tenant Search function?
- To locate tenants who have recently moved out
- To identify if an applicant is already receiving HUD rental assistance at another property (Correct answer)
- To verify a prospective tenant's identity documents
- To check an applicant's rental payment history
Correct answer: To identify if an applicant is already receiving HUD rental assistance at another property
The EIV Existing Tenant Search determines whether an applicant is currently receiving HUD rental assistance at another property before approving new assistance.
Question 4: What documentation must be in a tenant's file to support a claimed medical expense deduction?
- A verbal statement from the tenant summarizing expenses
- A doctor's bill, prescription, or insurance statement verifying the expense (Correct answer)
- Only an insurance company summary
- A government-issued standard medical deduction form
Correct answer: A doctor's bill, prescription, or insurance statement verifying the expense
Medical expense deductions must be supported by third-party documentation such as a doctor's bill, prescription, or insurance statement verifying the legitimacy of the expense.
Question 5: In Section 8 programs, how is Tenant Rent (TR) calculated?
- Total Tenant Payment minus the Utility Allowance (Correct answer)
- Contract Rent minus the HAP payment
- 30% of adjusted monthly income directly
- Gross Rent minus the HAP payment
Correct answer: Total Tenant Payment minus the Utility Allowance
Tenant Rent equals Total Tenant Payment (TTP) minus the Utility Allowance, representing the amount the tenant pays directly to the owner.
Question 6: Which of the following is NOT a required element of a move-in tenant file in HUD programs?
- Completed HUD-50059
- Third-party income verification
- Tenant's credit score report (Correct answer)
- Signed lease agreement
Correct answer: Tenant's credit score report
A credit score report is not a required element of the HUD move-in certification file; HUD requires income verification, certification forms, and a signed lease.
COS COS File Documentation & Recertification Procedures 2
Which income verification method is considered least preferred in the HUD verification hierarchy?