PIH Notice 2012- 29: Establishing the Passbook Savings Rate

Summary:  HUD's Notice (PIH Notice 2012-29) clarifies program policy related to the passbook savings rate used to determine annual income from net family assets. Under 24 CFR §5.609(b)(3), when determining annual income for families who apply for or receive assistance in the Housing Choice Voucher (HCV)
and public housing programs, a public housing agency (PHA) 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 $5000. This Notice also minimizes the administrative burden on Field Offices and PHAs in
conducting a survey of local banks, by relying on a rate that is publicly available and based upon recent market data.

HUD's Notice applies to all PHAs and localities that operate a HCV program, public housing program, or Section 8 Moderate Rehabilitation program. Moving-To-Work (MTW) agencies, to the extent they have established an alternate policy in their MTW plan, are excluded from the provisions of this Notice.

Date of Publication:  June 21, 2012

View the notice here.