HUD Passbook Savings Rate Decreases from 2% to .06%

Effective February 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 0.06{702b1bfd3fca8adb5d701d518597787f476258323f3a38e5dba1f0e3529aa4aa}.  Currently, when calculating income from assets – when the cash value of assets exceeds $5000.00 – HUD requires owner/agents to use the greater of “actual income from assets” or 2{702b1bfd3fca8adb5d701d518597787f476258323f3a38e5dba1f0e3529aa4aa}.  This long overdue change aligns current interest rates with HUD regulations across most affordable housing programs and will allow some prospective tenants eligible for housing who were otherwise ineligible due to higher imputed asset income.  This change affects most project based subsidized properties.  For the complete notice, please follow the link at Housing Notice 2014-15.