The Trainer

VERIFYING CASH VALUE AND INCOME OF STOCKS; KEEPING OUT DRUGS

In this month's feature, we discussed how to calculate the cash value of residents' stocks and assess the amount of income they produce. In turbulent economic times, stock values—and the dividends they pay—can fluctuate greatly, which can affect a household's obligation or desire to recertify their income. During certification and recertification, HUD requires you to verify the household's stock holdings by getting reliable and pertinent information.

In our article about preventing drugs from infiltrating your site, we gave you five tips for discouraging dealers from operating on your property. Drug activity can lead to property damage and other crimes against your residents, so you and your staff should be alert to signs it's occurring and take prompt action to curb it.

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

To verify a household member's stock information, HUD says that you should contact:

1. The household member's accountant.

2. The stockbroker who handles the household member's stock account.

3. Any certified financial representative of the household member.

4. Any of the above.

QUESTION #2

Mary owns 200 shares of ABC Corporation stock and 100 shares of XYZ Corporation stock. The current ABC stock price is $12.42, and the current price of XYZ stock is $26.12. What is the market value of Mary's stock holdings?

1. $3,854.

2. $6,466.

3. $5,096.

QUESTION #3

The cash value of a resident's stock account is not the same as its market value. True or false?

1. True.

2. False.

QUESTION #4

Mary's XYZ stock pays a quarterly dividend of 65 cents a share. For certification purposes, how much should you determine her annual stock income to be?

1. $260.

2. $780.

3. $68.

QUESTION #5

If the stockbroker who handles the household member's account doesn't return the verification form and doesn't respond to your phone calls, HUD says you can use documents submitted by the household member, such as a monthly or quarterly statement or the household member's 1099DIV form from the IRS. True or false?

1. True.

2. False.

QUESTION #6

In preventing drug activity on site grounds, what does the "20-3-7" rule refer to?

1. The hours and times your security personnel should make their rounds.

2. The number of guests and frequency of visits you should permit guests to make to a particular unit.

3. The height and density of trees and shrubs that your landscaping staff should maintain.

4. None of the above.

QUESTION #7

HUD requires you to deny admission to applicants based on certain drug-related and other criminal activity. When you conduct criminal background checks to verify independently whether the information the applicant has provided is correct, you should:

1. Perform the checks in every state where the applicant has lived.

2. Consider using the local PHA to perform the background checks.

3. Get the applicant's written consent to perform the background checks.

4. All of the above.

QUESTION #8

After fixing a clogged sink in a resident's unit, your maintenance worker tells you that he saw drugs on the resident's kitchen countertop. You should call the police to investigate. True or false?

1. True.

2. False.