COS Leasing Regulations & Compliance 3 — Questions and Answers
Question 1: Under the HOME Investment Partnerships Program, what is the purpose of the 'commitment deadline' requirement?
- To ensure tenants commit to a 12-month lease
- To require grantees to commit HOME funds within a specified timeframe or risk losing them (Correct answer)
- To set a deadline for completing property inspections
- To establish when rent increases can take effect
Correct answer: To require grantees to commit HOME funds within a specified timeframe or risk losing them
HOME grantees must commit funds within 24 months of HUD's obligation or face recapture of unused funds.
Question 2: A prospective tenant discloses they have HIV/AIDS during the application process. Under the Fair Housing Act, what is the property manager's obligation?
- Deny the application to protect other residents
- Process the application the same as any other, ignoring the disclosed condition (Correct answer)
- Request medical documentation before proceeding
- Notify current tenants of the applicant's condition
Correct answer: Process the application the same as any other, ignoring the disclosed condition
HIV/AIDS is considered a disability under the Fair Housing Act, and managers must process such applications without discrimination.
Question 3: What is the primary purpose of the Annual Recertification process in subsidized housing?
- To renegotiate lease terms with tenants
- To verify that tenants continue to meet income and eligibility requirements (Correct answer)
- To conduct building inspections and safety checks
- To update the property's tax assessment records
Correct answer: To verify that tenants continue to meet income and eligibility requirements
Annual recertification verifies that tenants still meet program income limits and other eligibility criteria for continued subsidized housing assistance.
Question 4: Under the Americans with Disabilities Act (ADA), which type of housing is most directly regulated regarding physical accessibility standards for public accommodations?
- All residential apartment complexes
- Only federally funded housing
- Leasing offices and common areas open to the public (Correct answer)
- Individual dwelling units in all properties
Correct answer: Leasing offices and common areas open to the public
The ADA primarily covers public accommodations such as leasing offices and common areas, while the Fair Housing Act covers individual dwelling units.
Question 5: A tenant requests to terminate their lease early because the property is uninhabitable due to mold. Which legal doctrine gives tenants this right?
- Constructive eviction (Correct answer)
- Unlawful detainer
- Implied warranty of habitability
- Tenancy at will
Correct answer: Constructive eviction
Constructive eviction occurs when a landlord's failure to maintain habitable conditions effectively forces the tenant to vacate, allowing early lease termination.
Question 6: Under LIHTC rules, what is the 'Available Unit Rule'?
- All vacant units must be offered to income-qualified tenants first
- If an over-income tenant vacates, the next unit must be rented to a low-income household
- When a current low-income tenant's income rises above 140% of the limit, the next available unit of the same size must be rented to a qualifying household (Correct answer)
- Property owners must maintain a 10% vacancy rate for emergency placements
Correct answer: When a current low-income tenant's income rises above 140% of the limit, the next available unit of the same size must be rented to a qualifying household
The Available Unit Rule requires that when a tenant's income exceeds 140% of the area median income, the next available comparable unit must be rented to an income-qualified household.
Question 7: Which form is used by HUD to document tenant income verification at a Section 8 project-based property?
- HUD-50058 (Correct answer)
- HUD-27001
- HUD-9834
- HUD-52530
Correct answer: HUD-50058
HUD Form 50058 is the Family Report used to document household composition, income, and rent at public housing and Section 8 project-based properties.
COS Leasing Regulations & Compliance 3
Under the HOME Investment Partnerships Program, what is the purpose of the 'commitment deadline' requirement?