NAHP Lease Administration & Enforcement 2 — Questions and Answers
Question 1: What does a 'cure or quit' notice require of a tenant?
- The tenant must repair unit damage at their own expense or transfer to another unit
- The tenant must correct a specific lease violation within a set time period or vacate (Correct answer)
- The property manager must resolve maintenance deficiencies before collecting rent
- The tenant must pay past-due utilities or surrender their apartment keys
Correct answer: The tenant must correct a specific lease violation within a set time period or vacate
A cure or quit notice gives the tenant a specific time period to remedy an identified lease violation; failure to cure requires them to vacate or face eviction.
Question 2: In affordable housing property management, 'lease-up' refers to which of the following?
- The annual process of increasing contract rents to current market rates
- The process of marketing and filling vacant units to reach target occupancy (Correct answer)
- The formal termination of a lease at its natural expiration date
- The execution of a lease renewal for an existing resident
Correct answer: The process of marketing and filling vacant units to reach target occupancy
Lease-up is the marketing and leasing process used to fill vacant units in a new or repositioned property until full or target occupancy is achieved.
Question 3: What is the key distinction between a fixed-term lease and a month-to-month rental agreement?
- Fixed-term leases require more extensive income verification at each renewal
- A fixed-term lease binds both parties for a defined period, while month-to-month agreements renew automatically each month (Correct answer)
- Month-to-month agreements require a larger security deposit than fixed-term leases
- Fixed-term leases do not need to be in writing to be legally enforceable
Correct answer: A fixed-term lease binds both parties for a defined period, while month-to-month agreements renew automatically each month
A fixed-term lease (e.g., one year) locks in the tenancy for a specified period, while a month-to-month agreement automatically renews each month until either party provides notice to terminate.
Question 4: Which of the following is a permissible basis for denying lease renewal in a LIHTC property?
- The tenant is marginally over-income following an annual recertification
- The tenant has repeatedly violated documented lease terms (Correct answer)
- The new ownership prefers residents of a different demographic profile
- The tenant has lived in the same unit for more than five years
Correct answer: The tenant has repeatedly violated documented lease terms
Repeated, documented lease violations constitute a legitimate, non-discriminatory basis for refusing renewal, provided violations and notices are thoroughly documented.
Question 5: What is the primary purpose of conducting a move-in inspection in lease administration?
- To screen tenants for income eligibility before allowing occupancy
- To document the unit's pre-existing condition before the tenant takes possession (Correct answer)
- To verify the tenant's employment and rental history references
- To ensure the unit meets HUD construction and safety standards
Correct answer: To document the unit's pre-existing condition before the tenant takes possession
Move-in inspections create a baseline record of the unit's condition so that, at move-out, tenant-caused damage can be distinguished from normal wear and tear.
Question 6: A property manager discovers a tenant has been subletting their unit without written authorization. What should the manager do first?
- Immediately file an unlawful detainer action in housing court
- Issue a written notice of the lease violation and require the unauthorized occupant to vacate (Correct answer)
- Reduce the tenant's rent to offset the cost of housing an additional person
- Transfer the tenant to a larger unit to accommodate the additional occupant
Correct answer: Issue a written notice of the lease violation and require the unauthorized occupant to vacate
Issuing a written violation notice is the required first step, giving the tenant an opportunity to remedy the situation while creating a documented enforcement record.
Question 7: How is 'constructive eviction' defined in property management law?
- When a landlord uses physical force or threats to remove a tenant from the unit
- When a landlord's failure to maintain habitable conditions effectively forces a tenant to vacate (Correct answer)
- When a tenant voluntarily abandons a unit without providing formal written notice
- When a court issues an order requiring a tenant to vacate within 24 hours
Correct answer: When a landlord's failure to maintain habitable conditions effectively forces a tenant to vacate
Constructive eviction occurs when a landlord's neglect of essential maintenance or services creates uninhabitable conditions that compel the tenant to leave.
NAHP Lease Administration & Enforcement 2
What does a 'cure or quit' notice require of a tenant?