New Passbook Rate to Be Effective Feb. 1, 2015

On Oct. 31, 2014, HUD issued Housing Notice 2014-15, “Passbook Savings Rate Effective February 1, 2015 and Establishing Future Passbook Savings Rates.” Currently, the HUD passbook rate is 2 percent. Effective Feb. 1, 2015, the HUD passbook rate will be reduced to 0.06 percent.

This notice indicates the guidance supersedes the rate indicated in HUD Handbook 4350.3, par. 5-7(F)(1)(b). In the future, HUD’s Office of Policy Development and Research will annually publish the rate and its effective date through a housing notice and will base it on the national average provided by the FDIC. During the year, if the average differs from the established rate by 2 percent or more, Multifamily Housing may publish a new rate to be used in the interim.

The HUD passbook rate is used to impute asset income on households who have $5,000 or more in assets. On or after Feb. 1, 2015, the new rate will be effective for all move-ins, and initial, annual, and interim recertifications, and applies to the following programs:

• Project-based Section 8 New Construction
• Project-based Section 8 State Agency Financed
• Project-based Section 8 Substantial Rehabilitation
• Section 202/8
• Rural Housing Services (RHS) Section 515/8
• Project-based Section 8 Loan Management Set-Aside (LMSA)
• Project-based Section 8 Property Disposition Set-Aside (PDSA)
• Section 101 Rent Supplement
• Section 202/162 Project Assistance Contract (PAC)
• Section 202 Project Rental Assistance Contract (PRAC)
• Section 202 Senior Preservation Rental Assistance Contracts (SPRAC)
• Section 811 PRAC
• Section 811 Project Rental Assistance Demonstration units under a Rental Assistance Contract (PRA)
• Section 236
• Section 236 Rental Assistance Payments (RAP)
• Section 221(d)(3) Below Market Interest Rate (BMIR)