Article | HOTMA Highlights | 2024 Passbook Savings Rate...and Beyond
Oct 13, 2023
Summary Note | The 2024 passbook savings rate will be 0.4 % and will change every year. This will apply to both Public and Indian Housing (PIH) and Multifamily Housing (MFH) programs
The Details | The Notice, section F.5. says, "HUD will annually publish a passbook rate based on the Federal Deposit Insurance Corporation (FDIC) National Deposit Rate for savings accounts, which is an average of national savings rates published on a monthly basis. PHAs/MFH Owners must use the HUD-published passbook rate when calculating imputed asset income for net family assets that exceed $50,000 (a figure that is annually adjusted for inflation). The HUD-published passbook rate will be posted to a dataset on the HUDUser Web site, alongside annual inflationary adjustments."
"To determine the passbook rate for the next calendar year, HUD will average the most recent three months of FDIC updates to the National Deposit Rate for savings accounts, rounded to the nearest hundredth of 1 percent. In order to ensure updated passbook rates may be used for reexaminations with an effective date of January 1, HUD will calculate the update in July each year, using FDIC data from April, May, and June. for publication on HUDUser not later than September 1."
Excerpt from the HOTMA Implementation Notice | F.5. and Table F3
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