HUD recently released Notice H2016-01 that establishes the Passbook Savings Rate effective February 1, 2016 for Multifamily Housing Programs. The rate, based on the national average established by the Federal Deposit Insurance Corporation (FDIC), remains unchanged at .06%.
This figure is used when calculating income from assets for resident households with greater than $5,000 in assets. According to HUD Handbook 4350.3 Par. 5-7F, pg. 5-27:
When net family assets are more than $5,000, annual income includes the greater of the following:
a. Actual income from assets; or
b. A percentage of the value of family assets based upon the current passbook rate as established by HUD.
HUD allows each public housing authority to establish its own Passbook Savings Rate. Notice PIH 2012-29 states that a PHA can establish a rate within 75 basis points (plus or minus) of the Savings National Rate in effect at the time the PHA establishes the passbook rate. Currently the Savings National Rate is .06% so Passbook Savings Rates between 0% and .81% meet the requirements.
PHAs are required to review their rate at least annually to ensure it is within the appropriate range. Since the Savings National Rate has been set at .06% for over 12 months, no PHA should be using more than .81% at this time.
If you have any questions about the Passbook Savings Rate, please contact me at lvercauteren@nchm.org.