CERTIFIED OCCUPANCY SPECIALIST (COS) PRACTICE EXAM - KEY REGULATIONS AND PROCEDURES
QUESTIONS ANSWERED CORRECTLY LATEST 2026
HUD Handbook 4350.3 REV-1 - Answers Provides detailed occupancy requirements for subsidized
housing programs and is the foundational document for COS certification.
Adjusted income calculation - Answers Calculated by subtracting HUD-allowed deductions from the
household's annual income.
Annual income calculation - Answers Includes regular cash contributions from outside the household
under HUD rules.
Asset limit for HUD programs - Answers There is no asset limit; however, income generated from
those assets must be included.
Imputed income from assets - Answers Calculated using the passbook rate applied to total assets
exceeding $5,000.
Third-party verification according to HUD guidelines - Answers Preferred as the most reliable method
of verifying tenant information.
Recertification period for HUD tenants - Answers Tenants must be recertified annually to ensure
continued program eligibility.
Action if a tenant fails to recertify - Answers Their rent must be increased to the market (or maximum)
rent allowed by the contract.
EIV report - Answers Used for verifying income and employment.
EIV (Enterprise Income Verification) - Answers A system that checks employment and income data
against government records.
Allowable deduction from annual income - Answers Expenses that can be subtracted from annual
income to determine eligibility for assistance.
Non-allowable deduction example - Answers Personal debt such as credit cards is not an allowable
deduction.
COS response to income dispute - Answers Request third-party verification and document the file.
Documentation required in tenant file - Answers Current and accurate income, asset, and eligibility
verification documentation.
Verification requirement for adult household members - Answers HUD requires verification of Social
Security numbers for all adults for eligibility determination.
Acceptable verification if third party cannot be reached - Answers File documentation plus a signed
tenant certification is acceptable.
Form used to certify tenant income and eligibility - Answers HUD-50059 form is used for tenant
certifications in multifamily housing programs.
Asset example - Answers Savings accounts are included in the asset calculation for annual income
purposes.
Definition of 'dependent' in HUD programs - Answers A household member under 18 or a full-time
student over 18 who is not the head or spouse.
Procedure for tenant with zero income - Answers Document the zero income and have the tenant
sign a certification.
Interim recertification requirement - Answers Required when there is a change in income or
household composition.
Primary purpose of the waiting list - Answers Maintain fair and consistent processing of applications.
Waiting lists - Answers Used to ensure equitable treatment of applicants and to track processing
order.
Earned income exclusion - Answers HUD rules exclude earned income from minors under age 18,
although unearned income like Social Security is included.
Minimum age for elderly household - Answers HUD defines an elderly person as someone who is at
least 62 years old.
Tenant file retention period - Answers HUD requires that tenant files be kept for 3 years after the
tenant leaves the property.
HQS inspection failure action - Answers Units that fail Housing Quality Standards must be repaired
promptly to remain in compliance.
First step in applicant processing - Answers Application and eligibility review is the first step in
processing applicants for HUD housing.
QUESTIONS ANSWERED CORRECTLY LATEST 2026
HUD Handbook 4350.3 REV-1 - Answers Provides detailed occupancy requirements for subsidized
housing programs and is the foundational document for COS certification.
Adjusted income calculation - Answers Calculated by subtracting HUD-allowed deductions from the
household's annual income.
Annual income calculation - Answers Includes regular cash contributions from outside the household
under HUD rules.
Asset limit for HUD programs - Answers There is no asset limit; however, income generated from
those assets must be included.
Imputed income from assets - Answers Calculated using the passbook rate applied to total assets
exceeding $5,000.
Third-party verification according to HUD guidelines - Answers Preferred as the most reliable method
of verifying tenant information.
Recertification period for HUD tenants - Answers Tenants must be recertified annually to ensure
continued program eligibility.
Action if a tenant fails to recertify - Answers Their rent must be increased to the market (or maximum)
rent allowed by the contract.
EIV report - Answers Used for verifying income and employment.
EIV (Enterprise Income Verification) - Answers A system that checks employment and income data
against government records.
Allowable deduction from annual income - Answers Expenses that can be subtracted from annual
income to determine eligibility for assistance.
Non-allowable deduction example - Answers Personal debt such as credit cards is not an allowable
deduction.
COS response to income dispute - Answers Request third-party verification and document the file.
Documentation required in tenant file - Answers Current and accurate income, asset, and eligibility
verification documentation.
Verification requirement for adult household members - Answers HUD requires verification of Social
Security numbers for all adults for eligibility determination.
Acceptable verification if third party cannot be reached - Answers File documentation plus a signed
tenant certification is acceptable.
Form used to certify tenant income and eligibility - Answers HUD-50059 form is used for tenant
certifications in multifamily housing programs.
Asset example - Answers Savings accounts are included in the asset calculation for annual income
purposes.
Definition of 'dependent' in HUD programs - Answers A household member under 18 or a full-time
student over 18 who is not the head or spouse.
Procedure for tenant with zero income - Answers Document the zero income and have the tenant
sign a certification.
Interim recertification requirement - Answers Required when there is a change in income or
household composition.
Primary purpose of the waiting list - Answers Maintain fair and consistent processing of applications.
Waiting lists - Answers Used to ensure equitable treatment of applicants and to track processing
order.
Earned income exclusion - Answers HUD rules exclude earned income from minors under age 18,
although unearned income like Social Security is included.
Minimum age for elderly household - Answers HUD defines an elderly person as someone who is at
least 62 years old.
Tenant file retention period - Answers HUD requires that tenant files be kept for 3 years after the
tenant leaves the property.
HQS inspection failure action - Answers Units that fail Housing Quality Standards must be repaired
promptly to remain in compliance.
First step in applicant processing - Answers Application and eligibility review is the first step in
processing applicants for HUD housing.
