HUD published Notice 2016-01 on January 19, 2016, announcing that the passbook savings rate effective February 1, 2016, will remain at .06%. The notice applies to all Project-Based Section 8 programs, Section 101 Rent Supplement Program, Section 202 Programs, Section 811 PRAC, Section 811 PAC, and Section 811 PRA, Section 236, and Section 221 (d) (3) BMIR projects. It will also apply to the Low-Income Housing Tax Credit and Rural Housing Service Section 515 Programs. Under 24 CFR §5.609(b)(3), when determining annual income for families who receive assistance in a Multifamily Housing subsidized unit, the owner includes in annual income the greater of either: (1) actual income resulting from all net family assets; or (2) a percentage of the value of such assets based upon the current passbook savings rate as determined by HUD when a family has net assets in excess of $5,000. The passbook savings rate of .06% is to be used for all move-in, initial, annual, and interim recertifications when a family has net assets in excess of $5,000.   Back to news