COS Eligibility Determination & Application Processing 2 — Questions and Answers
Question 1: Under HUD regulations, what is the maximum allowable time a property owner must respond to a completed rental application before it is considered abandoned?
- 14 days
- 30 days
- 60 days
- No federal maximum; state law governs (Correct answer)
Correct answer: No federal maximum; state law governs
HUD does not set a federal maximum response time for applications; state and local fair housing laws govern response timelines.
Question 2: A household's annual income is $28,000 and the Area Median Income (AMI) is $70,000. What percentage of AMI does this household represent?
- 30%
- 40% (Correct answer)
- 50%
- 60%
Correct answer: 40%
$28,000 divided by $70,000 equals 40%, placing the household at 40% of AMI.
Question 3: Which form is used to verify employment income directly from an employer during the initial certification process?
- HUD-50059
- HUD-9887
- Form 4506-T
- Verification of Employment (VOE) (Correct answer)
Correct answer: Verification of Employment (VOE)
A Verification of Employment (VOE) form is sent directly to employers to confirm wages and employment status.
Question 4: When an applicant discloses a prior eviction for non-payment of rent, the owner's most appropriate action under HUD guidelines is to:
- Automatically deny the application
- Evaluate the eviction on a case-by-case basis per written screening criteria (Correct answer)
- Place the applicant on a 5-year waiting list
- Require a double security deposit and approve
Correct answer: Evaluate the eviction on a case-by-case basis per written screening criteria
HUD requires owners to apply written, consistent screening criteria and evaluate prior evictions individually rather than using automatic blanket denials.
Question 5: Under the Violence Against Women Act (VAWA), an applicant who was denied housing due to their status as a victim of domestic violence may request documentation of their rights within how many days of the denial notice?
- 7 days
- 14 days (Correct answer)
- 30 days
- 60 days
Correct answer: 14 days
Under VAWA, owners must include VAWA rights information with denial notices, and applicants have 14 days to invoke VAWA protections.
Question 6: A Live-In Aide is requested for a person with disabilities. Which statement is TRUE regarding the aide's eligibility determination?
- The aide's income is counted toward household income
- The aide must meet income limits independently
- The aide's income is excluded from the household income calculation (Correct answer)
- The aide must be a family member
Correct answer: The aide's income is excluded from the household income calculation
Live-In Aides are not considered household members for income purposes, so their income is excluded from the household's income calculation.
Question 7: An owner discovers that an applicant submitted fraudulent income documents. What is the required action under HUD guidelines?
- Issue a warning and request corrected documents
- Deny the application and document the fraud finding (Correct answer)
- Place the applicant at the bottom of the waiting list
- Report to local authorities only if the amount exceeds $1,000
Correct answer: Deny the application and document the fraud finding
Submission of fraudulent documents is grounds for denial, and the owner must document the finding in accordance with their written policies.
COS Eligibility Determination & Application Processing 2
Under HUD regulations, what is the maximum allowable time a property owner must respond to a completed rental application before it is considered abandoned?