Who establishes the passbook savings rate and how is it determined?
Currently, each Field Office establishes the passbook savings rate to be used by PHAs within its jurisdiction. A Field Office determines the rate based on the average interest rate received on passbook savings accounts at several banks in the local area (24 CFR 5.609 and Form HUD-50058 Instruction Booklet, p. 22.) Although the new Public Housing Occupancy Guidebook, page 122, footnote 35, states that “Consistent with the Multi-family Housing Program, PHAs will use a standard 2% passbook rate,” the current method described above will remain in effect until superceded by PIH Notice.
