COS Property Management Practices 3 — Questions and Answers
Question 1: Under Section 504 of the Rehabilitation Act, federally assisted housing providers must make reasonable accommodations for residents with disabilities. Which scenario would NOT typically qualify as a reasonable accommodation?
- Allowing a resident to have an assistance animal in a no-pet building
- Assigning a reserved parking space closer to the unit entrance
- Constructing an entirely new elevator in a two-story building at great expense (Correct answer)
- Permitting a live-in aide without additional rent charge
Correct answer: Constructing an entirely new elevator in a two-story building at great expense
An accommodation causing undue financial or administrative burden on the housing provider, such as constructing a costly new elevator, may not be required under Section 504.
Question 2: A property manager for an elderly housing community must verify that at least what percentage of units are occupied by persons age 62 or older to maintain the age-restricted exemption under the Fair Housing Act?
- 55%
- 62%
- 80% (Correct answer)
- 100%
Correct answer: 80%
Under the Housing for Older Persons Act (HOPA), at least 80% of the occupied units must have at least one resident age 55 or older, or 100% must be for residents 62 and older.
Question 3: What is the primary purpose of an EIV (Enterprise Income Verification) system in HUD-assisted housing management?
- To process rent payments electronically
- To cross-check tenant-reported income against federal data sources (Correct answer)
- To track work order completion times
- To calculate utility allowances
Correct answer: To cross-check tenant-reported income against federal data sources
EIV uses federal databases to verify resident-reported income and detect potential fraud or misrepresentation in HUD-assisted programs.
Question 4: Which type of lease provision is typically prohibited in federally assisted housing because it improperly shifts legal obligations to the resident?
- Security deposit clause
- Lease hold-over clause
- Exculpatory clause (Correct answer)
- Renewal clause
Correct answer: Exculpatory clause
Exculpatory clauses that release the landlord from liability for negligence or shift the landlord's responsibilities to tenants are prohibited in federally assisted housing.
Question 5: When calculating a resident's Total Tenant Payment (TTP) in a HUD Section 8 property, which formula is used?
- 30% of monthly adjusted income or 10% of monthly gross income, whichever is greater (Correct answer)
- 25% of monthly gross income only
- The contract rent minus the HAP payment
- 50% of area median income divided by 12
Correct answer: 30% of monthly adjusted income or 10% of monthly gross income, whichever is greater
TTP is the greater of 30% of monthly adjusted income, 10% of monthly gross income, the welfare rent, or the minimum rent established by HUD.
Question 6: A property manager must retain resident files for how long after the resident moves out, according to HUD record-keeping requirements?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
HUD generally requires that tenant files be retained for a minimum of 3 years after the tenant vacates the unit.
Question 7: In multifamily housing management, what is a 'Vacancy Loss' as reported on an operating statement?
- The cost of renovating vacant units
- Rental income lost due to unoccupied units (Correct answer)
- Fines paid for Fair Housing violations
- Security deposits not returned to residents
Correct answer: Rental income lost due to unoccupied units
Vacancy loss is the amount of potential rental income not collected because units are unoccupied during a given period.
COS Property Management Practices 3
Under Section 504 of the Rehabilitation Act, federally assisted housing providers must make reasonable accommodations for residents with disabilities.
Which scenario would NOT typically qualify as a reasonable accommodation?