CERTIFIED OCCUPANCY SPECIALIST (COS) EXAM COMPLETE
QUESTIONS AND VERIFIED ANSWERS LATEST VERSION 2026
1. Q: What is the primary purpose of the COS certification? ANSWER
To ensure that housing professionals have the knowledge and skills to
properly determine tenant eligibility and calculate rent in accordance with
HUD regulations for multifamily housing programs.
2. Q: Which HUD handbook is the primary resource for occupancy
requirements? ANSWER HUD Handbook 4350.3 REV-1, Occupancy
Requirements of Subsidized Multifamily Housing Programs.
3. Q: What does "TTP" stand for? ANSWER Total Tenant Payment -
the amount the family pays toward rent and utilities.
4. Q: What are the three main categories of income used in rent
calculations? ANSWER Annual income, assets, and
deductions/allowances.
5. Q: What is the difference between annual income and adjusted
income? ANSWER Annual income is gross income before deductions;
adjusted income is annual income minus allowable deductions.
6. Q: How often must annual recertifications be completed? ANSWER
At least once every 12 months, on or before the anniversary date of the
previous certification.
7. Q: What is the maximum number of days before the effective date
that a recertification can be processed? ANSWER 120 days before
the anniversary date.
8. Q: What is an interim recertification? ANSWER A recertification
processed between annual recertifications when there's a change in family
composition or income that affects the rent calculation.
9. Q: Are interim recertifications mandatory or optional? ANSWER
They are optional for the tenant to request when reporting increases in
, income, but mandatory when reporting certain decreases or changes that
would lower their rent.
10.Q: What is the income limit for initial occupancy? ANSWER
Families must have income at or below 80% of the area median income
(AMI), though specific programs may have lower limits (50% or 60%
AMI).
11.Q: What is the difference between "very low income" and "low
income"? ANSWER Very low income is 50% or below area median
income; low income is between 50% and 80% of area median income.
12.Q: What does EIV stand for? ANSWER Enterprise Income
Verification - HUD's system for verifying tenant income and employment
information.
13.Q: How often should owners access EIV reports? ANSWER At least
every 90 days, and specifically during the certification process.
14.Q: What is the purpose of third-party verification? ANSWER To
obtain accurate information directly from the source (employer, bank,
etc.) to verify tenant-provided information.
15.Q: What is the hierarchy of verification methods? ANSWER 1)
Upfront income verification (UIV) through EIV, 2) Third-party written
verification, 3) Third-party oral verification, 4) Review of documents, 5)
Tenant declaration (only when other methods are not available).
16.Q: How long must tenant files be retained? ANSWER At least 3
years after the family moves out.
17.Q: What is a utility allowance? ANSWER An amount deducted from
the gross rent to account for utilities paid directly by the tenant.
18.Q: Who establishes utility allowances? ANSWER The owner/agent,
based on the actual cost of utilities or using the local public housing
authority's (PHA) schedule.
19.Q: How often must utility allowances be reviewed and updated?
ANSWER At least annually.
20.Q: What is the occupancy standard for determining unit size?
ANSWER Generally, two persons per bedroom, but owners may
establish reasonable standards based on local codes and fair housing
requirements.
, 21.Q: What is a "live-in aide"? ANSWER A person who resides with an
elderly, near-elderly, or disabled family to provide necessary supportive
services, but who is not obligated to support the family member and
would not be living in the unit except to provide care.
22.Q: Does a live-in aide's income count toward the family's income?
ANSWER No, a live-in aide's income is excluded from the family's
annual income.
23.Q: What is the definition of "elderly" for HUD purposes? ANSWER
A person who is at least 62 years of age.
24.Q: What is the definition of "near-elderly"? ANSWER A person who
is at least 50 years of age but below 62 years of age.
25.Q: What is a "disabled" person according to HUD? ANSWER A
person with a physical, mental, or emotional impairment that is expected
to be of long-continued and indefinite duration, substantially impedes
their ability to live independently, and is of such a nature that the ability
could be improved by more suitable housing conditions.
26.Q: What is the definition of "family" for HUD purposes? ANSWER
One or more individuals who will live together in the assisted unit,
including but not limited to families with or without children, elderly
families, near-elderly families, disabled families, displaced families, and
remaining members of tenant families.
27.Q: What is "annual recertification"? ANSWER The process of
redetermining family eligibility and the tenant rent at least once every 12
months.
28.Q: What documentation is required for citizenship/eligible
immigration status? ANSWER U.S. citizens must sign a declaration;
eligible non-citizens must provide documentation of eligible immigration
status and sign a verification consent form.
29.Q: What happens if a family has mixed eligibility (some members
eligible, some not)? ANSWER The family may still receive assistance,
but their assistance will be prorated based on the number of eligible
family members.
30.Q: What is a Social Security Number (SSN) requirement? ANSWER
All family members age 6 and older must disclose and provide
verification of their SSN, or certify that they don't have one.
QUESTIONS AND VERIFIED ANSWERS LATEST VERSION 2026
1. Q: What is the primary purpose of the COS certification? ANSWER
To ensure that housing professionals have the knowledge and skills to
properly determine tenant eligibility and calculate rent in accordance with
HUD regulations for multifamily housing programs.
2. Q: Which HUD handbook is the primary resource for occupancy
requirements? ANSWER HUD Handbook 4350.3 REV-1, Occupancy
Requirements of Subsidized Multifamily Housing Programs.
3. Q: What does "TTP" stand for? ANSWER Total Tenant Payment -
the amount the family pays toward rent and utilities.
4. Q: What are the three main categories of income used in rent
calculations? ANSWER Annual income, assets, and
deductions/allowances.
5. Q: What is the difference between annual income and adjusted
income? ANSWER Annual income is gross income before deductions;
adjusted income is annual income minus allowable deductions.
6. Q: How often must annual recertifications be completed? ANSWER
At least once every 12 months, on or before the anniversary date of the
previous certification.
7. Q: What is the maximum number of days before the effective date
that a recertification can be processed? ANSWER 120 days before
the anniversary date.
8. Q: What is an interim recertification? ANSWER A recertification
processed between annual recertifications when there's a change in family
composition or income that affects the rent calculation.
9. Q: Are interim recertifications mandatory or optional? ANSWER
They are optional for the tenant to request when reporting increases in
, income, but mandatory when reporting certain decreases or changes that
would lower their rent.
10.Q: What is the income limit for initial occupancy? ANSWER
Families must have income at or below 80% of the area median income
(AMI), though specific programs may have lower limits (50% or 60%
AMI).
11.Q: What is the difference between "very low income" and "low
income"? ANSWER Very low income is 50% or below area median
income; low income is between 50% and 80% of area median income.
12.Q: What does EIV stand for? ANSWER Enterprise Income
Verification - HUD's system for verifying tenant income and employment
information.
13.Q: How often should owners access EIV reports? ANSWER At least
every 90 days, and specifically during the certification process.
14.Q: What is the purpose of third-party verification? ANSWER To
obtain accurate information directly from the source (employer, bank,
etc.) to verify tenant-provided information.
15.Q: What is the hierarchy of verification methods? ANSWER 1)
Upfront income verification (UIV) through EIV, 2) Third-party written
verification, 3) Third-party oral verification, 4) Review of documents, 5)
Tenant declaration (only when other methods are not available).
16.Q: How long must tenant files be retained? ANSWER At least 3
years after the family moves out.
17.Q: What is a utility allowance? ANSWER An amount deducted from
the gross rent to account for utilities paid directly by the tenant.
18.Q: Who establishes utility allowances? ANSWER The owner/agent,
based on the actual cost of utilities or using the local public housing
authority's (PHA) schedule.
19.Q: How often must utility allowances be reviewed and updated?
ANSWER At least annually.
20.Q: What is the occupancy standard for determining unit size?
ANSWER Generally, two persons per bedroom, but owners may
establish reasonable standards based on local codes and fair housing
requirements.
, 21.Q: What is a "live-in aide"? ANSWER A person who resides with an
elderly, near-elderly, or disabled family to provide necessary supportive
services, but who is not obligated to support the family member and
would not be living in the unit except to provide care.
22.Q: Does a live-in aide's income count toward the family's income?
ANSWER No, a live-in aide's income is excluded from the family's
annual income.
23.Q: What is the definition of "elderly" for HUD purposes? ANSWER
A person who is at least 62 years of age.
24.Q: What is the definition of "near-elderly"? ANSWER A person who
is at least 50 years of age but below 62 years of age.
25.Q: What is a "disabled" person according to HUD? ANSWER A
person with a physical, mental, or emotional impairment that is expected
to be of long-continued and indefinite duration, substantially impedes
their ability to live independently, and is of such a nature that the ability
could be improved by more suitable housing conditions.
26.Q: What is the definition of "family" for HUD purposes? ANSWER
One or more individuals who will live together in the assisted unit,
including but not limited to families with or without children, elderly
families, near-elderly families, disabled families, displaced families, and
remaining members of tenant families.
27.Q: What is "annual recertification"? ANSWER The process of
redetermining family eligibility and the tenant rent at least once every 12
months.
28.Q: What documentation is required for citizenship/eligible
immigration status? ANSWER U.S. citizens must sign a declaration;
eligible non-citizens must provide documentation of eligible immigration
status and sign a verification consent form.
29.Q: What happens if a family has mixed eligibility (some members
eligible, some not)? ANSWER The family may still receive assistance,
but their assistance will be prorated based on the number of eligible
family members.
30.Q: What is a Social Security Number (SSN) requirement? ANSWER
All family members age 6 and older must disclose and provide
verification of their SSN, or certify that they don't have one.
