COS Eligibility Determination & Application Processing 3 — Questions and Answers
Question 1: Which of the following assets is excluded from annual income calculations under HUD's definition of assets?
- Savings account balances
- Checking account balances
- Necessary personal property such as furniture and automobiles (Correct answer)
- Certificates of deposit
Correct answer: Necessary personal property such as furniture and automobiles
Necessary personal property including furniture, automobiles, and clothing are excluded from the HUD definition of assets used in income calculations.
Question 2: The 'passbook rate' in asset income calculations is applied when:
- Actual asset income exceeds 2% of asset value
- Total household assets exceed $5,000 and actual income is less than the passbook rate calculation (Correct answer)
- A household has no verifiable assets
- Assets are held in foreign bank accounts
Correct answer: Total household assets exceed $5,000 and actual income is less than the passbook rate calculation
When household assets exceed $5,000, the greater of actual income or the passbook savings rate applied to total assets must be used in income calculation.
Question 3: A household on the waiting list must be notified of their position update at minimum how frequently under HUD guidelines?
- Every 6 months
- Every 12 months (Correct answer)
- Every 24 months
- Only when they reach the top of the list
Correct answer: Every 12 months
HUD requires that households on waiting lists be contacted at least annually to confirm continued interest and update eligibility information.
Question 4: Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?
- Race
- Familial status
- Sexual orientation (Correct answer)
- National origin
Correct answer: Sexual orientation
Sexual orientation is not a federally protected class under the Fair Housing Act, though many states and localities provide this protection; HUD interprets sex discrimination to include sexual orientation in some contexts.
Question 5: When processing a mixed-family household (some members with eligible immigration status, some without), the subsidy is calculated based on:
- The entire household including ineligible members
- Only the eligible family members' pro-rated share (Correct answer)
- The household is automatically disqualified
- The lowest-income household member's income
Correct answer: Only the eligible family members' pro-rated share
For mixed-family households, assistance is prorated based only on the eligible members' share of the household.
Question 6: An applicant's Social Security benefit letter shows gross monthly benefits of $1,200. What annual income figure is used for certification purposes?
- $14,400 (Correct answer)
- $13,200 (net after Medicare deduction)
- $1,200
- Varies based on state tax withholding
Correct answer: $14,400
HUD requires the gross Social Security benefit amount (before deductions for Medicare premiums) to be used, making the annual figure $1,200 × 12 = $14,400.
Question 7: A property uses a site-based waiting list. Under HUD guidelines, when must the owner notify HUD of the waiting list opening?
- 30 days before opening
- At least 10 business days before accepting applications (Correct answer)
- After the first 50 applications are received
- No advance notice is required
Correct answer: At least 10 business days before accepting applications
Owners using site-based waiting lists must provide HUD with at least 10 business days' notice before opening the list to ensure fair access.
COS Eligibility Determination & Application Processing 3
Which of the following assets is excluded from annual income calculations under HUD's definition of assets?