HUD Housing Notice § 2016-01
Passbook Savings Rate Effective February 1, 2016 (HUD Housing Notices)
Operative Text
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-
FEDERAL HOUSING COMMISSIONER
Special Attention of:
Notice: 2016-01
Multifamily Regional Center/Hub Directors Issued: January 19, 2016
Multifamily Satellite/Program Center Directors
Rural Services (RHS) Directors Expires: This notice remains in effect
Supervisory Housing Project Managers until amended, revoked, or
Housing Account Executives superseded.
Contract Administrators
Multifamily Owners and Management Agents
Subject: Passbook Savings Rate Effective February 1, 2016
I. Purpose: This notice supersedes Notice H 2014-15 addressing the passbook savings rate
used to determine annual income from net family assets.
II. Applicability: This notice applies to the following programs:
A. Project-based Section 8
1. New Construction
2. State Agency Financed
3. Substantial Rehabilitation
4. Section 202/8
5. Rural Housing Services (RHS) Section 515/8
6. Loan Management Set-Aside (LMSA)
7. Property Disposition Set-Aside (PDSA)
B. Section 101 Rent Supplement
C. Section 202/162 Project Assistance Contract (PAC)
D. Section 202 Project Rental Assistance Contract (PRAC)
E. Section 202 Senior Preservation Rental Assistance Contracts (SPRAC)
F. Section 811 PRAC
G. Section 811 Project Rental Assistance Demonstration units under a Rental
Assistance Contract (PRA)
H. Section 236
I. Section 236 Rental Assistance Payments (RAP)
J. Section 221(d) (3) Below Market Interest Rate (BMIR)
III. Background: 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 the U.S. Department of Housing and
Urban Development (HUD) when a family has net assets in excess of $5,000. As
interest rates may fluctuate, Multifamily Housing acknowledges the need to adjust the
passbook savings rate at least annually to represent current national averages.
IV. Passbook Savings Rate: The passbook savings rate is based on the national average
provided by the Federal Deposit Insurance Corporation. The passbook savings rate
(unchanged from last year) to be used for all move-in, initial, annual, and interim
recertification when a family has net assets over $5,000 is .06%. This .06% rate must be
used until Multifamily Housing publishes and makes effective a new passbook savings
rate.
V. Environmental Impact: In accordance with § 50.19(c)(6) of the HUD regulations, this
Notice sets forth rate determinations which do not constitute a development decision that
affects the physical condition of specific project areas or building sites, and therefore is
categorically excluded from the requirements of the National Environmental Policy Act and
related Federal laws and authorities.
VI. Paperwork Reduction Act: There are no information collection requirements in this Notice
and therefore the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) does not apply.
In accordance with the Paperwork Reduction Act, an agency may not conduct or sponsor,
and a person is not required to respond to, a collection of information unless the collection
displays a currently valid OMB control number.
VII. Inquiries: Questions about this notice should be directed to Michael Sharkey in the Office
of Asset Management and Portfolio Oversight at Michael.A.Sharkey@hud.gov.
_______________________________________
Edward Golding
Principal Deputy Assistant Secretary for Housing
2
Housing Notice § 2016-01, issued by HUD on January 19, 2016, establishes the passbook savings rate at 0.06% effective February 1, 2016, for use in calculating annual income from net family assets in federally subsidized multifamily housing programs. Under 24 CFR §5.609(b)(3), when a household's net assets exceed $5,000, annual income must include the greater of actual asset income or a percentage of asset value based on this HUD-determined rate. This notice supersedes the prior Notice H 2014-15 and remains in effect until HUD publishes a new rate.
Plain English — not legal advice.
Owners and management agents operating under the programs listed in Housing Notice § 2016-01—including Project-based Section 8, Section 236, Section 202, Section 811, and related programs—generally apply the 0.06% passbook savings rate when completing move-in, initial, annual, and interim recertifications for households with net assets exceeding $5,000. Compliant operators compare actual asset income against the imputed amount derived from the 0.06% rate and include whichever figure is greater in the household's annual income calculation. This rate remains in force until HUD publishes and makes effective a superseding notice.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants living in subsidized multifamily housing covered by Housing Notice § 2016-01 should be aware that their annual income calculation may include an imputed amount based on their net family assets if those assets exceed $5,000, even if actual earnings from those assets are lower. This rule, rooted in 24 CFR §5.609(b)(3), can affect the rent a household is required to pay, so tenants who believe their assets have been miscalculated during recertification may wish to request a review from their property manager or contact a local tenant-rights organization for guidance. Questions about the notice itself can also be directed to HUD's Office of Asset Management and Portfolio Oversight, as identified in the notice.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 6, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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