Question one
What is the maximum late fee amount you can charge at a HUD property?

A. $1 per day
B. $5 per day
C. Up to $30 per month
D. $0, HUD does not allow you to charge for late fees

Answer: C. Up to $30 per month
A late fee can only be charged after the tenant is given a 5-calendar day grace period. On the 6th day, a late fee can be charged but the fee cannot exceed $5 for the grace period from the 1st through the 5th day, and only $1 per day can be charged for each additional day that the rent remains unpaid up to $30 per month.

Question Two
How many categories are reviewed on the HUD Form 9834, for a Management Occupancy Review (MOR) Inspection?

A. 6
B. 7
C. 9
D. 13

Answer: B. 7
There are seven categories on HUD Form 9834 that are reviewed in an MOR inspection. However, if a HUD/Mortgage staff does not accompany the Contract Administrator for the audit, Category D will not be reviewed so you will only be scored on the other six categories. Only a HUD/Mortgage staff can review the Financial Management and Procurement category.

Question Three
Myra lives at a 100% HUD property. Her only asset is $4,023 in savings on which she gets an interest rate. Which of the following steps will be taken to calculate her rent?

A. Multiply the value of her savings account by the HUD passbook rate to determine her imputed asset income
B. Multiply the value of her savings account by the interest rate to determine actual asset income
C. Do both A and B, and use the higher amount
D. None of the above

Answer: B. Multiply the value of her savings account by the interest rate to determine actual asset income.
The cash value of household assets is less than $5,000 so imputing is not necessary.