CPO CPO Financial Management & Budgeting 1

Question 1

What is the primary purpose of the annual budget in HUD-assisted housing?

Accepted Answer

To plan and control income and expenditures for property operations

Answer

The annual budget serves as a financial plan to manage income and expenditures for the effective operation of HUD-assisted housing.

Question 2

Which HUD form is typically used to submit the annual operating budget for project-based Section 8 properties?

Accepted Answer

HUD-92547

Answer

HUD-92547 is the budget worksheet used for submitting annual operating budgets for project-based Section 8 properties.

Question 3

What does 'replacement reserve' refer to in HUD-assisted housing?

Accepted Answer

Funds set aside for major capital improvements and equipment replacement

Answer

Replacement reserves are funds set aside to cover future major capital expenditures such as roof replacement, HVAC systems, and other long-term asset maintenance.

Question 4

In a housing authority budget, what are 'operating expenses'?

Accepted Answer

Day-to-day costs of running the property including maintenance, utilities, and administration

Answer

Operating expenses encompass all routine costs associated with running the property on a daily basis, including maintenance, utilities, insurance, and administrative costs.

Question 5

What is a 'residual receipts account' in HUD-assisted properties?

Accepted Answer

An account for surplus project income after all approved expenses are paid

Answer

Residual receipts are surplus funds remaining after all HUD-approved operating expenses and required deposits have been paid from project income.

CPO - Certified Professional of Occupancy Practice Test

CPO - Certified Professional of Occupancy Practice Test

CPO CPO Financial Management & Budgeting 1