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Certified Occupancy Specialist COS Exam ACTUAL
QUESTIONS AND ANSWERS LATEST UPDATE THIS
YEAR
COS Exam: Point-Form Coverage of Key Domains
• HUD Handbook 4350.3 REV-1 – Primary regulatory source for occupancy, eligibility, rent
calculation, and compliance.
• Eligibility Determination – Income limits, household composition, student eligibility, and
immigration status rules.
• Income & Rent Calculation – Annual income sources, exclusions, assets, deductions (dependent,
elderly/disabled, child care, medical, disability assistance), adjusted income, total tenant
payment (TTP), tenant rent, utility allowances, and flat rents.
• Recertification – Annual recertification timing, interim recertification triggers (income,
composition), and processing requirements.
• EIV System – Access, use, reports (Income Discrepancy, New Hires, etc.), data security, and
verification responsibilities.
• Waiting List & Tenant Selection – Ordering, preferences, outreach, documentation, and fair
housing compliance.
• Lease Requirements – HUD lease addenda, lease terms, termination, eviction, and transfer
policies.
• Fair Housing & Nondiscrimination – Fair Housing Act protected classes, reasonable
accommodations, VAWA protections, Section 504, and accessibility requirements.
• REAC & Physical Inspections – Uniform Physical Condition Standards (UPCS), NSPIRE, inspection
protocols, and scoring.
• LIHTC Compliance – Income limits, rent restrictions, set-aside tests, and recertification for tax
credit properties.
1. A family of four has applied for an apartment at a property where the HUD income limit for a
family of that size is $45,000 per year. Their anticipated annual income is $42,000. Which action
must the occupancy specialist take regarding this application?
A) Place the application on the waiting list without further review because the income is
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below the limit
B) Deny the application because the income is too close to the limit and the family might
exceed it soon
C) Verify all income sources and recalculate the annual income before making an eligibility
decision
D) Accept the application immediately and process the lease without additional verification
✅ Answer: C
Income eligibility requires careful verification of all anticipated income sources for the coming 12
months, not just a quick comparison of a stated amount to the published limit, so the specialist
must verify the income figures before making an eligibility determination.
2. During a household’s annual recertification interview, the tenant tells you that her elderly
mother has moved into the unit permanently. How must the occupancy specialist handle this
change in household composition before completing the recertification?
A) Process the recertification with the original household composition and address the
mother’s status at the next annual renewal
B) Add the mother to the household immediately and recompute income and rent based on
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the new composition
C) Ask the mother to submit a separate application and keep her on a waiting list for a
different unit
D) Remove the entire family from the program because the unit occupancy standard may now
be exceeded
✅ Answer: B
Any change in household composition requires an immediate update to the household record
and a recalculation of income, allowances, and rent, which must be processed through either an
interim recertification or the pending annual recertification.
3. A resident’s son, who is 17 years old and a full-time high school student, begins working 25
hours per week at a local grocery store earning $500 per month. When calculating annual
income for the household, how should the occupancy specialist treat the son’s earnings?
**A) Include 100% of the son’s earnings in annual income because all employment income
counts toward the household total**
**B) Exclude the son’s earnings entirely because he is a minor child who is also a full-time
student**
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**C) Count only the portion of earnings that exceeds $480 per month based on the student
earnings exclusion**
D) Count the son’s earnings only after subtracting the cost of his school supplies and
transportation
✅ Answer: C
Under HUD regulations, the earnings of a full-time student who is 18 years of age or older are
excluded up to $480 per year, but the child in this scenario is 17, so the full student earnings
exclusion does not apply; however, a portion may still be excluded depending on the program.
4. A disabled resident pays $300 per month for unreimbursed medical expenses, and these
expenses are documented with receipts. How should the occupancy specialist treat these
expenses when calculating the household’s adjusted income for rent determination?
**A) Ignore the medical expenses because they are considered personal living costs**
**B) Deduct the full $300 per month from annual income before calculating rent**
C) Deduct only the portion of medical expenses that exceeds 3% of the household’s annual
income
D) Deduct medical expenses only if they are prescribed by a physician and not covered by
Certified Occupancy Specialist COS Exam ACTUAL
QUESTIONS AND ANSWERS LATEST UPDATE THIS
YEAR
COS Exam: Point-Form Coverage of Key Domains
• HUD Handbook 4350.3 REV-1 – Primary regulatory source for occupancy, eligibility, rent
calculation, and compliance.
• Eligibility Determination – Income limits, household composition, student eligibility, and
immigration status rules.
• Income & Rent Calculation – Annual income sources, exclusions, assets, deductions (dependent,
elderly/disabled, child care, medical, disability assistance), adjusted income, total tenant
payment (TTP), tenant rent, utility allowances, and flat rents.
• Recertification – Annual recertification timing, interim recertification triggers (income,
composition), and processing requirements.
• EIV System – Access, use, reports (Income Discrepancy, New Hires, etc.), data security, and
verification responsibilities.
• Waiting List & Tenant Selection – Ordering, preferences, outreach, documentation, and fair
housing compliance.
• Lease Requirements – HUD lease addenda, lease terms, termination, eviction, and transfer
policies.
• Fair Housing & Nondiscrimination – Fair Housing Act protected classes, reasonable
accommodations, VAWA protections, Section 504, and accessibility requirements.
• REAC & Physical Inspections – Uniform Physical Condition Standards (UPCS), NSPIRE, inspection
protocols, and scoring.
• LIHTC Compliance – Income limits, rent restrictions, set-aside tests, and recertification for tax
credit properties.
1. A family of four has applied for an apartment at a property where the HUD income limit for a
family of that size is $45,000 per year. Their anticipated annual income is $42,000. Which action
must the occupancy specialist take regarding this application?
A) Place the application on the waiting list without further review because the income is
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below the limit
B) Deny the application because the income is too close to the limit and the family might
exceed it soon
C) Verify all income sources and recalculate the annual income before making an eligibility
decision
D) Accept the application immediately and process the lease without additional verification
✅ Answer: C
Income eligibility requires careful verification of all anticipated income sources for the coming 12
months, not just a quick comparison of a stated amount to the published limit, so the specialist
must verify the income figures before making an eligibility determination.
2. During a household’s annual recertification interview, the tenant tells you that her elderly
mother has moved into the unit permanently. How must the occupancy specialist handle this
change in household composition before completing the recertification?
A) Process the recertification with the original household composition and address the
mother’s status at the next annual renewal
B) Add the mother to the household immediately and recompute income and rent based on
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the new composition
C) Ask the mother to submit a separate application and keep her on a waiting list for a
different unit
D) Remove the entire family from the program because the unit occupancy standard may now
be exceeded
✅ Answer: B
Any change in household composition requires an immediate update to the household record
and a recalculation of income, allowances, and rent, which must be processed through either an
interim recertification or the pending annual recertification.
3. A resident’s son, who is 17 years old and a full-time high school student, begins working 25
hours per week at a local grocery store earning $500 per month. When calculating annual
income for the household, how should the occupancy specialist treat the son’s earnings?
**A) Include 100% of the son’s earnings in annual income because all employment income
counts toward the household total**
**B) Exclude the son’s earnings entirely because he is a minor child who is also a full-time
student**
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**C) Count only the portion of earnings that exceeds $480 per month based on the student
earnings exclusion**
D) Count the son’s earnings only after subtracting the cost of his school supplies and
transportation
✅ Answer: C
Under HUD regulations, the earnings of a full-time student who is 18 years of age or older are
excluded up to $480 per year, but the child in this scenario is 17, so the full student earnings
exclusion does not apply; however, a portion may still be excluded depending on the program.
4. A disabled resident pays $300 per month for unreimbursed medical expenses, and these
expenses are documented with receipts. How should the occupancy specialist treat these
expenses when calculating the household’s adjusted income for rent determination?
**A) Ignore the medical expenses because they are considered personal living costs**
**B) Deduct the full $300 per month from annual income before calculating rent**
C) Deduct only the portion of medical expenses that exceeds 3% of the household’s annual
income
D) Deduct medical expenses only if they are prescribed by a physician and not covered by
