Reminder: New Passbook Savings Rate Effective Feb. 1, 2015

HUD’s Housing Notice 2014-15 established a new Passbook Savings Rate of 0.06 percent effective Feb. 1, 2015, which supersedes the rate published in paragraph 5-7(F) of HUD Handbook 4350.3. To comply with the requirements of the notice, owners are required to use the new Passbook Savings Rate of 0.06 percent for all certifications effective Feb. 1, 2015, and later. If owners have already completed a certification to be effective on Feb. 1, 2015, or later, the certification will need to be corrected using the 0.06 percent rate.

Additionally, HUD Handbook 4350.3 and the HUD model lease permit tenants to request an interim recertification if their income changes before the next recertification. Because a reduction in the Passbook Savings Rate could reduce household income, tenants are permitted to request an interim recertification using the new 0.06 percent rate beginning Feb. 1, 2015.