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CPO Financial Management & Budgeting Flashcards

6 cards from real CPO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CPO Financial Management & Budgeting flashcards as text

  1. HUD requires project-based Section 8 properties to submit audited financial statements how often?

    Answer: Annually

    HUD mandates annual submission of audited financial statements for project-based Section 8 properties to ensure financial accountability.

  2. What is the purpose of the Financial Data Schedule (FDS) submitted to HUD?

    Answer: To provide standardized financial reporting for HUD-assisted properties

    The Financial Data Schedule provides HUD with standardized financial information to assess the financial health of assisted properties.

  3. Under HUD guidelines, what is the generally accepted maximum management fee as a percentage of collected rents?

    Answer: 10%

    HUD generally caps management fees at approximately 10% of collected rents, though the exact percentage may vary by program and locality.

  4. What is 'cost certification' in HUD-assisted housing development?

    Answer: Documentation submitted to HUD verifying actual development costs after project completion

    Cost certification is the process of documenting and submitting actual construction and development costs to HUD after a project is completed to determine the final mortgage amount.

  5. Which of the following is NOT typically an allowable operating expense under HUD's budget guidelines?

    Answer: Owner distributions beyond HUD-approved amounts

    Owner distributions beyond HUD-approved amounts are not allowable operating expenses; HUD strictly regulates the distribution of surplus project income.

  6. What is the purpose of a 'budget-based rent increase' in HUD-assisted housing?

    Answer: To adjust contract rents based on documented increases in operating costs

    A budget-based rent increase allows owners to request contract rent adjustments from HUD when documented operating cost increases warrant higher rents to maintain financial viability.