HUD Passbook Savings Rate Will Remain at .06% for 2016

On January 19, 2016, HUD issued Housing Notice 2016-01 “Passbook Savings Rate Effective February 1, 2016” to notify the industry that the passbook savings rate will remain at .06% for 2016. This information was also included in RHIIP Listserv #344, issued on January 26, 2016.

What does this figure mean? When calculating income from assets that have a combined cash value total of $5,000 or more, HUD requires owners use the greater of actual income from assets or the imputed asset income when calculating the total gross annual income of the household on the HUD Form 50059 (or the Tenant Income Certification (TIC) for the LIHTC Program).

“Actual income from assets” is the actual amount of income the asset generates as interest, dividends, etc. The “imputed asset income” is the resulting figure when you multiply the total cash value of all assets by the HUD passbook savings rate.