The Trainer

ENSURING SMOOTH MANAGEMENT TRANSITION; COUNTING ABSENT HOUSEHOLD MEMBERS

In this month's feature, we gave you a checklist of documents you should collect when you take over the management of an assisted site from its owner or another management company. During a transition, you need to get up to speed quickly on how the site is regulated and operated, so you can get HUD approval and manage the site successfully.

ENSURING SMOOTH MANAGEMENT TRANSITION; COUNTING ABSENT HOUSEHOLD MEMBERS

In this month's feature, we gave you a checklist of documents you should collect when you take over the management of an assisted site from its owner or another management company. During a transition, you need to get up to speed quickly on how the site is regulated and operated, so you can get HUD approval and manage the site successfully.

This month we also discussed how to follow HUD rules when a household reports to you that one of its members will be absent from the unit. The circumstances will determine whether you must count these absent household members for purposes of determining unit size and household income during certification or recertification.

 

TRAINER'S QUIZ

INSTRUCTIONS: Each of the questions below has only one correct answer. On a separate sheet of paper, write down the number of each question, followed by the answer you have chosen—for example, (1) b, (2) a, and so on. The correct answers (with explanations) follow the quiz. Good luck!

QUESTION #1

When taking over a site, you should ask the owner or former management company for a copy of the site's insurance policies. Then you should review the policies to check that you're named as an additional insured on the policy. True or false?

  1. True.

  2. False.

QUESTION #2

If, after reviewing the site's insurance policies, you think the site in underinsured, you should recommend a proper amount of coverage that you think will satisfy the requirements of HUD and any regulatory agreements, mortgage documentation, and HAP contracts. True or false?

  1. True.

  2. False.

QUESTION #3

It's important to ask for the site's past property tax assessments, because:

  1. Rent determinations are partly based on the site's property taxes.

  2. Tax assessors often overvalue assisted sites, and if the site is overvalued, you can appeal the assessment.

  3. You must make all property tax records available to the public on request.

  4. All of the above.

QUESTION #4

You should review the site's advertising records and compare them to:

  1. The affirmative fair housing marketing plan.

  2. Reasonable accommodation and modification records.

  3. The rent roll.

  4. The regulatory agreement.

QUESTION #5

You must count the presence and income of a household member who's temporarily absent from the unit, unless he's:

  1. In the military.

  2. In jail for selling drugs.

  3. In the hospital for surgery.

  4. Visiting relatives outside the country.

QUESTION #6

You should count the income of a household member who's away on active duty in the military if:

  1. His spouse and/or dependent child lives in the unit.

  2. He has no spouse or dependents and he's scheduled to return from active duty within one year.

  3. He serves in any branch of the military except the National Guard.

  4. a and b.

QUESTION #7

Children should be counted as household members even when:

  1. They're temporarily placed in foster homes.

  2. They're away at college except during the summer and holidays.

  3. They live two days a week with another parent who has joint custody.

  4. All of the above.

 

ANSWERS & EXPLANATIONS

QUESTION #1

Correct answer: a

True. You should require in your contract with the owner that you be named as an additional insured on the owner's insurance policy.

QUESTION #2

Correct answer: b

False. If you think the site is underinsured, send the owner and its insurance broker a letter saying so. But don't recommend a certain amount of coverage—if that amount turns out to be inadequate to cover a loss, you could be liable for the difference.

QUESTION #3

Correct answer: b

If your site has been overvalued, you may want to speak with an attorney about challenging the assessment.

QUESTION #4

Correct answer: a

Make sure that the site's advertising campaigns are consistent with the promises the site made in its affirmative fair housing marketing plan.

QUESTION #5

Correct answer: b

If a household member is temporarily absent due to jail time as a result of a serious crime, including drug-related criminal activity, HUD says you must take action to remove the member from the lease [HUD Handbook 4350.3, App. 4-A to 4-D].

QUESTION #6

Correct answer: a

You must count the income of any household member who is stationed in the military and leaves dependents or a spouse in the unit.

QUESTION #7

Correct answer: d

Children in all these circumstances should be counted as household members.

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