Certified Occupancy Specialist (COS)
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1. What is the primary regulation that governs occupancy
requirements for HUD’s multifamily housing programs?
A. Section 504 of the Rehabilitation Act
B. The Civil Rights Act of 1964
C. HUD Handbook 4350.3 REV-1
D. The Fair Housing Act
Rationale: The Handbook 4350.3 REV-1 is the foundational HUD
guideline for multifamily compliance regarding occupancy,
eligibility and rent calculation.
2. Which of the following is included in “annual income” for HUD
multifamily programs?
A. Food stamps
B. Earned income of a minor under 18
C. Regular cash contributions received from outside the
household
D. The value of volunteer services
HUD defines annual income to include most cash contributions
from outside the household. Unearned income of a minor might
, count, but earned income of a minor under 18 is typically
excluded.
3. Which of the following is not an allowable deduction from
annual income when calculating adjusted income?
A. Child care expenses for children under 13
B. Medical expenses for elderly or disabled households
C. Dependent allowance
D. Credit card debt
HUD allows specific deductions such as child care (if necessary
for work/training), medical expenses (for elderly/disabled), and
dependent allowances, but personal debt such as credit cards is
not an allowable deduction.
4. The asset limit for eligibility in most HUD multifamily programs
is:
A. $5,000
B. $10,000
C. There is no asset limit, but income from assets must be
counted
D. $50,000
HUD does not impose a specific asset limit, but requires that
any income generated by assets (actual or imputed) be included
in annual income.
5. How is “imputed income” from assets determined when actual
income is not available?
A. Based on actual income received
B. Based on household size
C. Based on HUD’s published passbook rate or other
HUD-specified rate
D. Based on the asset’s market value only
, If the actual income from an asset is unknown, HUD may
require imputing income using the HUD passbook savings rate
or other specified methodology.
6. Under HUD multifamily rules, what is required at the time of
initial certification for all adult household members?
A. Verification of hobbies
B. Verification of Social Security number
C. Verification of prior rental history only
D. Education level verification
HUD requires verification of SSNs for all adult household
members to determine eligibility and prevent duplication of
assistance.
7. When should the Enterprise Income Verification (EIV) system be
reviewed by the occupancy specialist?
A. Only at move-out
B. Only once at initial certification
C. At certification and each annual recertification (and interim
when required)
D. Never
EIV must be used at each annual or interim certification to verify
tenant income and employment data. The occupancy specialist
must review, document, and resolve discrepancies.
8. A household reports zero income. What is the correct action by
the occupancy specialist?
A. Deny tenancy because zero income is not allowed
B. Assume the household is hiding income
C. Require a co-signer before move-in
D. Document the zero income, have tenant sign a certification,
and verify no income exists
, Zero income is permissible if properly verified and documented.
The specialist must collect a zero income certification and
attempt third-party verification or tenant declaration.
9. What triggers an interim recertification in a HUD multifamily
program?
A. Every 3 years
B. Only at the end of lease term
C. When there is a change in income or household
composition (as defined by program)
D. Never; only annual recertifications are allowed
Interim recertification is required when a household’s income or
composition changes significantly between annual
certifications.
10. What document must applicants receive to comply with
the Violence Against Women Act (VAWA) protections?
A. Lease termination notice
B. HUD Form 5380 (Notice of Occupancy Rights) and HUD
Form 5382 (Self-Certification) if request is claimed
C. EIV report
D. Medical documentation form
Properties must provide HUD 5380 and 5382 to
applicants/tenants in covered housing when VAWA protections
apply.
11. What is the main purpose of the Tenant Selection Plan
(TSP) in HUD-assisted housing?
A. Enforce lease rules
B. Describe how applicants are selected for tenancy in a fair
and consistent manner
C. Assign rent amounts
Exam With Actual Questions & Verified
Answers ,Plus Explained
Rationales/Expert Verified For
Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. What is the primary regulation that governs occupancy
requirements for HUD’s multifamily housing programs?
A. Section 504 of the Rehabilitation Act
B. The Civil Rights Act of 1964
C. HUD Handbook 4350.3 REV-1
D. The Fair Housing Act
Rationale: The Handbook 4350.3 REV-1 is the foundational HUD
guideline for multifamily compliance regarding occupancy,
eligibility and rent calculation.
2. Which of the following is included in “annual income” for HUD
multifamily programs?
A. Food stamps
B. Earned income of a minor under 18
C. Regular cash contributions received from outside the
household
D. The value of volunteer services
HUD defines annual income to include most cash contributions
from outside the household. Unearned income of a minor might
, count, but earned income of a minor under 18 is typically
excluded.
3. Which of the following is not an allowable deduction from
annual income when calculating adjusted income?
A. Child care expenses for children under 13
B. Medical expenses for elderly or disabled households
C. Dependent allowance
D. Credit card debt
HUD allows specific deductions such as child care (if necessary
for work/training), medical expenses (for elderly/disabled), and
dependent allowances, but personal debt such as credit cards is
not an allowable deduction.
4. The asset limit for eligibility in most HUD multifamily programs
is:
A. $5,000
B. $10,000
C. There is no asset limit, but income from assets must be
counted
D. $50,000
HUD does not impose a specific asset limit, but requires that
any income generated by assets (actual or imputed) be included
in annual income.
5. How is “imputed income” from assets determined when actual
income is not available?
A. Based on actual income received
B. Based on household size
C. Based on HUD’s published passbook rate or other
HUD-specified rate
D. Based on the asset’s market value only
, If the actual income from an asset is unknown, HUD may
require imputing income using the HUD passbook savings rate
or other specified methodology.
6. Under HUD multifamily rules, what is required at the time of
initial certification for all adult household members?
A. Verification of hobbies
B. Verification of Social Security number
C. Verification of prior rental history only
D. Education level verification
HUD requires verification of SSNs for all adult household
members to determine eligibility and prevent duplication of
assistance.
7. When should the Enterprise Income Verification (EIV) system be
reviewed by the occupancy specialist?
A. Only at move-out
B. Only once at initial certification
C. At certification and each annual recertification (and interim
when required)
D. Never
EIV must be used at each annual or interim certification to verify
tenant income and employment data. The occupancy specialist
must review, document, and resolve discrepancies.
8. A household reports zero income. What is the correct action by
the occupancy specialist?
A. Deny tenancy because zero income is not allowed
B. Assume the household is hiding income
C. Require a co-signer before move-in
D. Document the zero income, have tenant sign a certification,
and verify no income exists
, Zero income is permissible if properly verified and documented.
The specialist must collect a zero income certification and
attempt third-party verification or tenant declaration.
9. What triggers an interim recertification in a HUD multifamily
program?
A. Every 3 years
B. Only at the end of lease term
C. When there is a change in income or household
composition (as defined by program)
D. Never; only annual recertifications are allowed
Interim recertification is required when a household’s income or
composition changes significantly between annual
certifications.
10. What document must applicants receive to comply with
the Violence Against Women Act (VAWA) protections?
A. Lease termination notice
B. HUD Form 5380 (Notice of Occupancy Rights) and HUD
Form 5382 (Self-Certification) if request is claimed
C. EIV report
D. Medical documentation form
Properties must provide HUD 5380 and 5382 to
applicants/tenants in covered housing when VAWA protections
apply.
11. What is the main purpose of the Tenant Selection Plan
(TSP) in HUD-assisted housing?
A. Enforce lease rules
B. Describe how applicants are selected for tenancy in a fair
and consistent manner
C. Assign rent amounts
