New Passbook Rate to Be Effective Feb. 1, 2015
On Oct. 31, 2014, HUD issued Housing Notice 2014-15, “Passbook Savings Rate Effective February 1, 2015 and Establishing Future Passbook Savings Rates.” The HUD passbook rate is used to impute asset income on households who have $5,000 or more in assets. Currently, the HUD passbook rate is 2 percent. Effective Feb. 1, 2015, the HUD passbook rate will be reduced to 0.06 percent. Since the LIHTC program is required to follow Section 8 rules regarding household income calculation, you must use the new rate beginning Feb. 1, 2015.