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Certified Housing Manager Assistant Exam study materials
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Certified Housing Manager Assistant Exam practice questions

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Question 1HUD Compliance

Under HUD rules, how many days does a tenant have to respond to a notice of proposed termination of tenancy for failure to pay rent?

  1. 10 days
  2. 30 days
  3. 14 days Correct answer.
  4. 5 days

Explanation

HUD requires that a notice of proposed termination for nonpayment of rent give the tenant at least 14 days to respond, and the notice must be delivered in the manner the lease specifies. The period is measured from the date the notice is delivered, not the date it is mailed.

Question 2HUD Compliance

A public housing agency must complete a full reexamination of family income and composition at what minimum frequency?

  1. Only when the tenant requests it
  2. Every two years
  3. Every three years
  4. Every year Correct answer.

Explanation

HUD requires an annual reexamination of income and family composition for public housing and Section 8 families, although PHAs may conduct interim reexaminations when income changes. The annual cycle keeps the rent calculation current and prevents over- or under-charging.

Question 3HUD Compliance

A family applies for Section 8 assistance. Which of the following is an eligible category under HUD's definition of a family?

  1. A person who is a registered lifetime sex offender
  2. A group of unrelated students sharing a house temporarily
  3. A household whose only income is from illegal activity
  4. A single person Correct answer.

Explanation

HUD's family definition includes a single person, so an individual living alone is an eligible family for Section 8 purposes. The other listed situations fall outside the eligible definitions or trigger statutory exclusions.

Question 4HUD Compliance

What is the maximum income limit that generally applies to a family admitted to the Section 8 Housing Choice Voucher program?

  1. 80 percent of area median income
  2. 30 percent of area median income
  3. 120 percent of area median income
  4. 50 percent of area median income Correct answer.

Explanation

Section 8 admission is generally limited to very low-income families, defined as those at or below 50 percent of area median income, with the PHA given limited targeting flexibility. The 80 percent figure describes low-income rather than very low-income households.

Question 5HUD Compliance

Under HUD's Enterprise Income Verification system, how often must a PHA obtain and review the EIV existing tenant search report for each assisted family?

  1. Monthly
  2. Only at initial certification
  3. Quarterly
  4. Annually Correct answer.

Explanation

HUD requires PHAs to use EIV at least annually as part of the reexamination process, reviewing the existing tenant search and income reports. EIV is a verification tool that supplements, but does not replace, the family's own declarations and third-party verification.

Question 6HUD Compliance

A PHA must provide a tenant with a written notice of proposed termination of tenancy for cause. What must the notice include?

  1. Only the date the tenant must vacate
  2. A statement that the tenant should contact a lawyer
  3. The name of the PHA's insurance carrier
  4. The specific grounds for termination and the date the tenancy will end Correct answer.

Explanation

Due process requires that a termination notice state the specific grounds for the action and the date the tenancy will terminate, so the tenant can prepare a response. A vague or conclusory notice is insufficient.

Question 7HUD Compliance

Which federal law requires that PHAs and owners provide reasonable accommodation to applicants and tenants with disabilities?

  1. The Privacy Act of 1974
  2. The Freedom of Information Act
  3. The Fair Housing Act Correct answer.
  4. The Fair Credit Reporting Act

Explanation

The Fair Housing Act, together with Section 504 of the Rehabilitation Act, requires reasonable accommodation in rules, policies, and practices so that persons with disabilities have equal access to housing. A request for accommodation must be evaluated individually.

Question 8HUD Compliance

What does HUD's Housing Quality Standards inspection primarily determine?

  1. Whether the tenant has paid rent on time
  2. Whether the owner has adequate liability insurance
  3. Whether the unit meets minimum health and safety standards Correct answer.
  4. Whether the neighborhood has sufficient parking

Explanation

HQS inspections assess whether a unit is decent, safe, and sanitary, covering items such as utilities, plumbing, heating, and structural conditions. Passing inspection is a condition for continued housing assistance payments.

Question 9HUD Compliance

A Section 8 tenant's total tenant payment is generally calculated as the greater of 30 percent of adjusted monthly income or which other amount?

  1. The full contract rent
  2. 5 percent of gross monthly income
  3. The utility allowance
  4. 10 percent of gross monthly income Correct answer.

Explanation

The total tenant payment is the greatest of 30 percent of adjusted income, 10 percent of gross income, or the welfare rent where applicable. The 10 percent gross-income floor prevents families with large deductions from paying a disproportionately small share.

Question 10HUD Compliance

A family reports that their adult son has moved into the unit. Under HUD rules, the family must report this change in composition within what timeframe?

  1. Within 30 days of the change Correct answer.
  2. Within 14 days of the change
  3. Within 10 days of the change
  4. At the next annual reexamination

Explanation

HUD requires families to report changes in household composition within 30 days of the change, although PHAs may adopt a shorter period by policy. Timely reporting allows the PHA to recalculate the subsidy and prevent improper payments.

Question 11HUD Compliance

An owner wants to terminate a Section 8 tenancy because the tenant repeatedly disturbs neighbors. What must the owner do first?

  1. File an eviction action without notifying the tenant
  2. Withhold the housing assistance payment
  3. Serve a written notice specifying the grounds and the termination date Correct answer.
  4. Change the locks and post a notice on the door

Explanation

The owner must provide written notice stating the specific grounds and the date the tenancy will end, giving the tenant an opportunity to respond. Self-help eviction and payment withholding are prohibited.

Question 12HUD Compliance

A PHA discovers that a tenant failed to report employment income, resulting in an overpayment of subsidy. What is the PHA's required first step?

  1. Terminate assistance immediately without notice
  2. Refer the matter directly to local law enforcement
  3. Adjust the tenant's rent retroactively to the date of admission
  4. Calculate the amount owed and provide written notice of the debt Correct answer.

Explanation

When an overpayment occurs, the PHA must determine the amount and provide the family written notice of the debt, including the basis and any repayment options. Termination requires separate notice and due process and is not automatic.

Question 13HUD Compliance

Which of the following best describes the purpose of the HUD-50058 form?

  1. To report the owner's annual property taxes
  2. To record family income, composition, and rent for each assisted household Correct answer.
  3. To authorize the tenant to sublet the unit
  4. To document the unit's inspection results only

Explanation

The HUD-50058 is the Family Report used to capture family characteristics, income, and rent calculations, and it must be submitted to HUD's system of record. It supports reporting and monitoring of the assisted household over time.

Question 14HUD Compliance

A tenant with a mobility impairment requests a transfer to a ground-floor unit as a reasonable accommodation. How should the PHA respond?

  1. Deny the request because transfers are limited to annual reexamination
  2. Require the tenant to pay a transfer fee before review
  3. Evaluate the request individually and grant it if reasonable and necessary Correct answer.
  4. Refer the tenant to a private landlord without review

Explanation

Reasonable accommodation requests must be evaluated on an individual basis, and a transfer may be granted when it is necessary to afford equal access to the program. Blanket denials or fees conditioned on disability-related need are improper.

Question 15HUD Compliance

What is the maximum initial lease term that HUD permits for a Section 8 Housing Choice Voucher tenancy?

  1. One year Correct answer.
  2. Three years
  3. Six months
  4. Two years

Explanation

The initial lease term for a voucher tenancy is generally one year, matching the HAP contract term, although renewals may follow the owner's standard practices. Longer initial terms require HUD approval.

Question 16HUD Compliance

A PHA must verify a family's Social Security numbers as part of eligibility. What is the consequence if a household member cannot provide a required SSN?

  1. The family is permanently barred from assistance
  2. The member may be excluded from the household for assistance purposes Correct answer.
  3. The PHA must report the family to immigration authorities
  4. The family's rent is doubled

Explanation

HUD permits a family to exclude a member who lacks a required SSN from the household for purposes of determining eligibility and assistance. The remaining eligible members may still receive assistance.

Question 17HUD Compliance

Which of the following describes HUD's rule on charging a family for a unit that fails Housing Quality Standards inspection?

  1. The owner may continue receiving HAP until the next annual inspection
  2. The tenant must pay the full contract rent during the abatement
  3. The PHA must terminate the tenant's assistance immediately
  4. HAP may be abated if the owner fails to correct the deficiency within the required period Correct answer.

Explanation

When an owner fails to correct cited HQS deficiencies within the required timeframe, the PHA may abate housing assistance payments until the unit passes inspection. The tenant is not penalized for the owner's failure to maintain the unit.

Question 18HUD Compliance

A PHA is calculating adjusted income for a family with a member who is elderly. Which deduction is generally permitted?

  1. A deduction for the cost of a family vacation
  2. The elderly or disabled family deduction set by HUD Correct answer.
  3. A deduction for the family's car loan
  4. A deduction for the family's credit card debt

Explanation

HUD allows a fixed elderly or disabled family deduction, along with deductions for dependents, medical expenses, and disability assistance expenses, when calculating adjusted income. Consumer debt and discretionary spending are not deductible.

Question 19HUD Compliance

What does HUD require regarding the tenant's right to a grievance hearing before a PHA terminates assistance?

  1. The tenant must waive the hearing to remain in the unit
  2. The PHA must offer a grievance hearing unless a statutory exception applies Correct answer.
  3. Grievance hearings apply only to owner-initiated evictions
  4. Hearings are available only if the tenant hires an attorney

Explanation

PHAs must provide an administrative grievance procedure for tenants, with limited statutory exceptions such as certain criminal activity or drug-related evictions. The hearing gives the tenant an opportunity to contest the PHA's action before it becomes final.

Question 20HUD Compliance

An applicant is denied Section 8 assistance. What must the PHA provide to the applicant?

  1. A copy of the PHA's annual budget
  2. A written notice stating the reason for denial and the right to request a hearing Correct answer.
  3. Only a verbal explanation at the interview
  4. A referral to a private landlord

Explanation

HUD requires written notification of denial that states the specific reason and informs the applicant of the right to request an informal hearing or review. Written notice supports the applicant's ability to challenge an erroneous decision.

Question 21HUD Compliance

A PHA is reviewing a family whose only income is Supplemental Security Income. How is SSI treated in the rent calculation?

  1. It is counted as income subject to the applicable deductions Correct answer.
  2. It is treated as a asset rather than income
  3. It is counted only if the family volunteers the information
  4. It is excluded entirely from income

Explanation

SSI is countable income for HUD rent calculations, and the family may also qualify for the elderly or disabled deduction. Excluding it would understate the family's ability to pay.

Question 22HUD Compliance

An owner proposes to raise the contract rent on a Section 8 unit. What must occur before the new rent takes effect?

  1. The tenant must sign a new lease without PHA review
  2. The increase applies only after the tenant's income rises
  3. The owner may raise rent unilaterally at any time
  4. The PHA must approve a rent reasonableness determination and any required HUD adjustment Correct answer.

Explanation

Rent increases require PHA approval based on a rent reasonableness analysis and compliance with HUD's rent adjustment rules. The tenant's share and the HAP are then recalculated accordingly.

Question 23HUD Compliance

A family's income decreases mid-year because a member loses a job. Under HUD rules, when must the PHA process an interim reexamination?

  1. Never, because income decreases are not actionable
  2. Only at the next annual reexamination
  3. When the change meets the PHA's adopted threshold for interim review Correct answer.
  4. Only if the family files a grievance

Explanation

HUD allows PHAs to set a threshold for interim reexaminations, and a qualifying decrease in income must be processed so the family's rent reflects its current circumstances. Failing to act can result in overcharging the family.

Question 24HUD Compliance

A PHA learns that a tenant committed fraud by concealing income. Which action is consistent with HUD requirements?

  1. Terminate assistance following proper notice and pursue repayment of the overpayment Correct answer.
  2. Immediately evict the tenant without a hearing
  3. Reduce the tenant's rent to compensate for the error
  4. Ignore the fraud because the annual reexamination will catch it

Explanation

HUD permits termination of assistance for fraud in connection with the program, but the PHA must follow notice and hearing procedures and may also establish a repayment obligation. Summary eviction without process is not permitted.

Question 25HUD Compliance

A PHA is determining whether a unit's rent is reasonable. Which factor is relevant to the rent reasonableness determination?

  1. The PHA's administrative budget
  2. Rents charged for comparable unassisted units in the market area Correct answer.
  3. The tenant's credit score
  4. The owner's personal mortgage balance

Explanation

Rent reasonableness compares the proposed rent to rents for comparable unassisted units in the same market area, considering size, location, amenities, and condition. The owner's financing and the tenant's credit are not part of the comparison.

Question 26HUD Compliance

A PHA receives a family's annual recertification packet. Under HUD rules, the family's total tenant payment is generally set at the greatest of several figures. Which figure is one of those components?

  1. 10 percent of the family's gross monthly income
  2. 50 percent of the family's gross monthly income
  3. The full contract rent regardless of income
  4. 30 percent of adjusted monthly income Correct answer.

Explanation

HUD's rent formula sets total tenant payment at the greatest of 30 percent of adjusted monthly income, 10 percent of gross monthly income, the welfare rent where applicable, or the minimum rent. The 30 percent-of-adjusted-income figure is the most familiar component of that comparison.

Question 27HUD Compliance

A PHA is preparing its annual plan and must describe how it will affirmatively further fair housing. Which activity best reflects the affirmatively furthering fair housing obligation?

  1. Analyzing impediments to fair housing choice and taking steps to overcome them Correct answer.
  2. Publishing the waiting list closure date in a local newspaper
  3. Requiring all applicants to sign a statement waiving their right to file a complaint
  4. Limiting admissions to applicants who already reside in the jurisdiction

Explanation

Affirmatively furthering fair housing requires the PHA to identify impediments to fair housing choice and take meaningful action to reduce them. It is a proactive planning and action duty, not merely a publication or recordkeeping task.

Question 28HUD Compliance

A PHA wants to verify a family's earned income using a source that provides the most current and reliable data. Which verification method does HUD generally require PHAs to use first?

  1. Third-party written or electronic verification Correct answer.
  2. An estimate based on the previous year's rent
  3. Tenant self-certification without supporting documents
  4. A verbal statement from a neighbor

Explanation

HUD requires PHAs to obtain third-party verification of income, preferring written or electronic sources such as an employer's report or an EIV income report. Self-certification is used only when third-party verification is unavailable after documented attempts.

Question 29HUD Compliance

A PHA is screening an applicant household. HUD rules limit when a PHA may deny assistance based on a family member's criminal history. Which statement best reflects those limits?

  1. A PHA may deny assistance for any arrest record regardless of outcome
  2. A PHA may deny assistance for a conviction only if the offense is a felony of any kind
  3. A PHA may deny assistance based on an arrest alone if the arrest occurred within five years
  4. A PHA may deny assistance for criminal activity that would threaten residents, but may not rely on an arrest that did not lead to conviction Correct answer.

Explanation

HUD permits PHAs to prohibit admission for specified criminal activity that threatens the health or safety of residents, but an arrest without conviction is not itself a basis for denial. PHAs must also consider mitigating circumstances and individualized review.

Question 30HUD Compliance

A PHA must inspect a unit under Housing Quality Standards. Which condition would most clearly cause a unit to fail the inspection?

  1. A missing handrail on a stairway used by the household Correct answer.
  2. A scuff mark on an interior wall
  3. A window with a decorative curtain
  4. An older but functioning refrigerator

Explanation

HQS performance requirements address health and safety hazards, and a missing handrail on a stairway is a safety deficiency that fails inspection. Cosmetic wear, window coverings, and working older appliances do not by themselves fail HQS.

Question 31HUD Compliance

A PHA is calculating a family's annual income and must decide whether to include a lump-sum payment received from an insurance settlement. Under HUD rules, how is a nonrecurring lump-sum payment generally treated?

  1. It is excluded from annual income but counted as an asset if retained Correct answer.
  2. It is averaged over the remaining months of the lease term
  3. It is counted only if it exceeds the family's annual rent
  4. It is always counted as annual income in the year received

Explanation

HUD excludes nonrecurring lump-sum payments from annual income, but if the family retains the funds they become an asset subject to the asset-income rules. This distinction matters because the payment affects rent through asset income rather than as earned or benefit income.

Question 32HUD Compliance

A PHA is establishing its minimum rent policy. Under HUD rules, which statement describes the minimum rent requirement?

  1. Minimum rent applies only to elderly households
  2. Minimum rent is a fixed floor that the PHA must charge every family regardless of hardship
  3. Minimum rent may be set at any amount the PHA chooses without HUD limits
  4. A PHA may establish a minimum rent, but must provide a hardship exemption when the family cannot pay Correct answer.

Explanation

HUD allows PHAs to adopt a minimum rent, but the PHA must grant a hardship exemption when the family demonstrates inability to pay due to specified circumstances. The exemption is a required protection, not optional discretion.

Question 33HUD Compliance

A family in a Section 8 unit asks the owner to make a repair. The owner fails to correct the deficiency after notice. What is the PHA's appropriate response under HUD requirements?

  1. The PHA must raise the contract rent to cover repair costs
  2. The PHA has no role because repairs are solely a landlord-tenant matter
  3. The PHA may suspend housing assistance payments to the owner until the deficiency is corrected Correct answer.
  4. The PHA must immediately terminate the family's assistance

Explanation

When an owner fails to maintain the unit in compliance with HQS, the PHA may suspend housing assistance payments until the deficiency is corrected. Terminating the family's assistance would penalize the tenant for the owner's failure.

Question 34HUD Compliance

A PHA is reviewing a family's assets to determine whether asset income must be counted. Under HUD rules, which statement describes how net family assets are generally treated?

  1. Assets are counted only when the family owns real property
  2. Assets are counted only if the family reports them voluntarily
  3. All assets are counted at their full market value as annual income
  4. Net family assets below the HUD-established threshold are generally excluded from the asset-income calculation Correct answer.

Explanation

HUD sets a threshold below which net family assets are excluded from the calculation of asset income, and above which imputed or actual asset income is counted. The threshold is adjusted periodically, so PHAs must apply the current figure.

Question 35HUD Compliance

A PHA is preparing to issue a voucher to a family. Under HUD rules, what is the standard period during which the family must locate a unit before the voucher expires, subject to PHA extension?

  1. 60 days Correct answer.
  2. 30 days
  3. 90 days
  4. 180 days

Explanation

HUD requires that a voucher be valid for at least 60 days so the family has time to search for a unit. PHAs may extend the search period under their policies, but the baseline term is 60 days.

Question 36HUD Compliance

A PHA is reviewing its utility allowance schedule. What is the purpose of the utility allowance in the voucher program?

  1. To reduce the tenant's rent burden when the family pays some or all utilities directly Correct answer.
  2. To reimburse the owner for maintenance costs
  3. To cover the PHA's administrative expenses
  4. To set the maximum contract rent the owner may charge

Explanation

The utility allowance estimates the cost of utilities the family pays directly, and it is subtracted from the gross rent to determine the family's share. This keeps the tenant's total housing cost within the intended affordability range.

Question 37HUD Compliance

A PHA must report family and unit data to HUD. Which form is used to transmit the required data for the Housing Choice Voucher program?

  1. HUD-52670
  2. HUD-9886
  3. HUD-50058 Correct answer.
  4. HUD-9012

Explanation

The HUD-50058 is the family report form used to transmit household, income, and unit data to HUD's systems for the voucher and public housing programs. Other listed forms serve different purposes, such as consent or funding requests.

Question 38HUD Compliance

A PHA is reviewing a family whose sole income is from a public assistance program that is based on the family's actual income. How is that assistance generally treated in the rent calculation?

  1. It is counted at double its value to offset administrative costs
  2. It is included as income, but the family may receive an exclusion for the portion that is based on need Correct answer.
  3. It is counted only if the family also has earned income
  4. It is always excluded from annual income because it is a benefit

Explanation

Public assistance is generally counted as income, though HUD rules provide an exclusion for certain public assistance amounts and the welfare rent alternative may apply. The treatment depends on the program and the family's circumstances, so the PHA must apply the applicable exclusion.

Question 39HUD Compliance

A PHA is conducting an annual recertification and learns that a family member has left the household. What effect does a decrease in household size generally have on the rent calculation?

  1. It has no effect on the rent calculation
  2. It may increase the family's share of rent because the same income is spread over fewer household members Correct answer.
  3. It requires the family to move to a smaller unit immediately
  4. It always lowers the total tenant payment

Explanation

Removing a household member reduces the number of persons but not necessarily the remaining income, so the per-person income and the family's rent share can rise. PHAs must also check unit-size rules, but an immediate forced move is not automatic.

Question 40HUD Compliance

A PHA is notifying a family of an adverse action. What must the notice include to satisfy HUD's due process requirements?

  1. Only the effective date of the action
  2. A statement of the action, the reasons for it, and the family's right to request a hearing or review Correct answer.
  3. A list of the family's neighbors who were interviewed
  4. A waiver the family must sign to accept the decision

Explanation

HUD requires that adverse action notices state the action being taken, the reasons, and the family's right to an informal review or hearing, along with applicable deadlines. This gives the family a meaningful opportunity to respond.

Question 41HUD Compliance

A PHA is reviewing its policies on the Violence Against Women Act. What protection does VAWA provide to a tenant who is a victim of domestic violence?

  1. The tenant may not be evicted or terminated from assistance for being a victim, though the PHA may still act on unrelated lease violations Correct answer.
  2. The tenant must repay any assistance received during the violence
  3. The tenant is exempt from all lease obligations for the remainder of the tenancy
  4. The tenant must move to a different jurisdiction to remain eligible

Explanation

VAWA protects victims from being denied assistance or evicted on the basis of the violence itself, while allowing PHAs and owners to act on independent lease violations. The law also provides emergency transfer rights and confidentiality protections.

Question 42HUD Compliance

A PHA is calculating adjusted income for a family with a member who is elderly or a person with a disability. Which deduction is generally permitted?

  1. A deduction for the family's vacation expenses
  2. A deduction for unreimbursed medical expenses above a threshold for elderly or disabled family members Correct answer.
  3. A deduction for the family's credit card debt
  4. A deduction for the family's car payment

Explanation

HUD permits a deduction for unreimbursed medical expenses above a specified threshold when the family includes an elderly person or a person with a disability. Consumer debt and discretionary spending are not allowable deductions.

Question 43HUD Compliance

A PHA is reviewing a family's participation in an earned income disallowance. What is the purpose of the earned income disallowance?

  1. To penalize families who do not seek employment
  2. To require families to work a minimum number of hours per week
  3. To permanently exclude all earned income from the rent calculation
  4. To temporarily reduce the rent impact of new earnings so families are not discouraged from working Correct answer.

Explanation

The earned income disallowance temporarily excludes a portion of increased earned income from the rent calculation, creating a work incentive. It is time-limited and applies only to qualifying increases in earned income.

Question 44HUD Compliance

A PHA is reviewing a family's citizenship and immigration status. Which statement reflects HUD's eligibility rules for the voucher program?

  1. Eligibility depends on the family's length of residence in the jurisdiction
  2. All noncitizens are ineligible regardless of immigration status
  3. Certain noncitizens with eligible immigration status may receive assistance, with prorated assistance for mixed families Correct answer.
  4. Only U.S. citizens are eligible for assistance

Explanation

HUD permits assistance for noncitizens with eligible immigration status, and mixed families receive prorated assistance based on the number of eligible members. Citizenship alone is not the test, and local residency length is not an eligibility factor.

Question 45HUD Compliance

A PHA has determined that a family's income decreased significantly and the family requests an interim recertification. Under HUD rules, which statement best describes the PHA's obligation?

  1. The PHA must deny all interim recertifications to reduce administrative burden
  2. The PHA must process the interim recertification when the change meets the PHA's threshold and the required notice is given Correct answer.
  3. The PHA may ignore the request until the next annual recertification
  4. The PHA must terminate assistance because income changed

Explanation

HUD requires PHAs to process interim recertifications when a family reports a qualifying change in income, subject to the PHA's adopted threshold and timing rules. Ignoring a valid request or denying all requests would violate those requirements.

Question 46HUD Compliance

A PHA is reviewing a family's reported income and compares it with data from HUD's Enterprise Income Verification system. What is the PHA's appropriate use of EIV data?

  1. To automatically terminate assistance without further review
  2. To verify income and detect discrepancies, followed by a documented review and any required recertification Correct answer.
  3. To disclose the family's income to neighbors for comparison
  4. To replace the family's obligation to report income changes

Explanation

EIV is a verification tool that helps PHAs confirm income and identify discrepancies, but the PHA must review the data and give the family an opportunity to explain before taking action. EIV does not eliminate the family's reporting obligations.

Question 47HUD Compliance

A PHA is reviewing a Section 8 owner's request to terminate a tenancy. Under HUD rules, which statement describes a permissible ground for termination by the owner?

  1. The tenant has requested a reasonable accommodation
  2. The owner dislikes the tenant's choice of religion
  3. The owner wants to rent the unit to a family that pays a higher rent
  4. The tenant has materially violated the lease, such as failing to pay rent or breaching a lease term Correct answer.

Explanation

An owner may terminate a Section 8 tenancy for cause, including a material lease violation such as nonpayment of rent or breach of a lease term, following the required notice and HUD procedures. Discriminatory motives and retaliation for accommodation requests are prohibited.

Question 48HUD Compliance

A PHA is reviewing a family's participation in the Family Self-Sufficiency program. What is the primary purpose of an escrow account in FSS?

  1. To accumulate the family's increased rent payments as savings when the family's earned income rises Correct answer.
  2. To hold the family's security deposit until move-out
  3. To fund the owner's repairs
  4. To collect the PHA's administrative fees from the family

Explanation

In FSS, when a family's earned income increases and its rent share rises, the increased rent amount is deposited into an escrow account for the family. The family may access the funds upon successful completion of the FSS contract.

Question 49HUD Compliance

A PHA is reviewing its waiting list practices. Under HUD rules, which statement describes a permissible waiting list preference?

  1. A preference for families based on their national origin
  2. A preference for families who have never received assistance before
  3. A preference for families who are related to current PHA employees
  4. A preference for families who are homeless or who are transitioning out of institutional care Correct answer.

Explanation

HUD permits certain local preferences, including preferences for homeless families and families transitioning from institutional settings, when adopted in the PHA's plan and consistent with fair housing. Preferences based on protected characteristics or nepotism are impermissible.

Question 50HUD Compliance

A PHA is reviewing a family's eligibility and must consider the community service requirement for public housing residents. Which statement best describes that requirement?

  1. Community service is optional for all residents
  2. Community service is required only for families with children under 18
  3. Only elderly residents must perform community service
  4. All adult residents must perform community service unless they qualify for an exemption Correct answer.

Explanation

The community service requirement generally applies to adult public housing residents, with exemptions for elderly persons, persons with disabilities, and other qualifying categories. PHAs must track compliance and apply the exemptions correctly.