HUD Clarifies Passbook Rate Guidance

On Nov. 7, 2014, HUD issued a new passbook savings rate of 0.06 percent to be effective Feb. 1, 2015. The following week, on Nov. 14, HUD issued a RHIIP Listserv that gave additional details regarding the Feb. 1, 2015, effective date.

To comply with the requirements of the notice, owners must use the new passbook savings rate of 0.06 percent for all certifications effective Feb. 1, 2015, and later. If owners have already completed a certification to be effective on Feb. 1, 2015, or later, the certification must be corrected using the 0.06 percent rate. Additionally, the HUD Handbook and the HUD model lease permit residents to request an interim recertification if their income changes before the next recertification. Because a reduction in the passbook savings rate could reduce household income, tenants are permitted to request an interim recertification using the new 0.06 percent rate beginning Feb. 1, 2015.