HUD Issues New Passbook Savings Rate

HUD posted Notice H 2014-15, “Passbook Savings Rate” and “Establishing Future Passbook Savings Rates,” to provide guidance to owners of HUD Multifamily Housing subsidized properties related to the passbook savings rate used to determine annual income from net family assets. As interest rates have now dropped and maintained a level significantly below two percent, the HUD Multifamily Housing office acknowledges the need to adjust the passbook savings rate at least annually to represent current national averages.

Effective Feb. 1, 2015, the passbook savings rate to be used for all move-in, initial, annual and interim recertifications when a family has net assets over $5,000 is .06 percent. This .06 percent rate must be used until Multifamily Housing publishes and makes effective a new passbook savings rate.

For several years HUD had set the passbook savings rate at two percent because, historically, interest rates had fluctuated around that number. The new rate reflects current saving rates.

To view the notice, click here.

LeadingAge is requesting clarity from HUD on when and how to implement the new rate.

Contact: Ken Harris, kharris@leadingageny.org, 518-867-8835