HUD Issues Passbook Savings Rate Effective Feb. 1

HUD recently issued notice 2016-01 announcing the passbook savings rate used to determine annual income from net family assets. It will become effective Feb. 1, 2016. In addition to HUD programs, the imputed interest rate is also used to calculate annual income at LIHTC sites when a family has net assets in excess of $5,000.

The passbook savings rate is based on the national average provided by the Federal Deposit Insurance Corporation. The passbook savings rate (unchanged from last year) to be used for all move-in, initial, annual, and interim recertification when a family has net assets over $5,000 is .06 percent. This .06 percent rate must be used until HUD publishes and makes effective a new passbook savings rate.