CPO CPO Financial Management & Budgeting 2

Question 1

HUD requires project-based Section 8 properties to submit audited financial statements how often?

Accepted Answer

Annually

Answer

HUD mandates annual submission of audited financial statements for project-based Section 8 properties to ensure financial accountability.

Question 2

What is the purpose of the Financial Data Schedule (FDS) submitted to HUD?

Accepted Answer

To provide standardized financial reporting for HUD-assisted properties

Answer

The Financial Data Schedule provides HUD with standardized financial information to assess the financial health of assisted properties.

Question 3

Under HUD guidelines, what is the generally accepted maximum management fee as a percentage of collected rents?

Accepted Answer

10%

Answer

HUD generally caps management fees at approximately 10% of collected rents, though the exact percentage may vary by program and locality.

Question 4

What is 'cost certification' in HUD-assisted housing development?

Accepted Answer

Documentation submitted to HUD verifying actual development costs after project completion

Answer

Cost certification is the process of documenting and submitting actual construction and development costs to HUD after a project is completed to determine the final mortgage amount.

Question 5

Which of the following is NOT typically an allowable operating expense under HUD's budget guidelines?

Accepted Answer

Owner distributions beyond HUD-approved amounts

Answer

Owner distributions beyond HUD-approved amounts are not allowable operating expenses; HUD strictly regulates the distribution of surplus project income.

CPO - Certified Professional of Occupancy Practice Test

CPO - Certified Professional of Occupancy Practice Test

CPO CPO Financial Management & Budgeting 2