Passbook Savings Rate for 2015 and Establishing Future Passbook Savings Rates

HUD recently issued the following notice which provides guidance to owners of HUD Multifamily Housing subsidized properties related to the passbook savings rate used to determine annual income from net family assets. Beginning February 1, 2015, Multifamily will annually publish the passbook savings rate to be used for all certifications to replace the previously set rate of 2% with a rate reflective of the national average.

This change applies to:

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)

To view this notice, please click here