Imputed Income From Assets

HUD released a Notice modifying HH 4350.3 languageexplaining the rules for calculating income from assets. Currently, Paragraph5-7-F provides the following guidance.

Calculating Incomefrom Assets When Assets Exceed $5,000

1) When netfamily assets are more than $5,000, annual income includes the greater of thefollowing:

a) Actual incomefrom assets; or

b) A percentageof the value of family assets based upon the current passbook savings rate asestablished by HUD. This is called imputed income from assets. The passbook rateis currently set at 2%.

2) To begin this calculation, first add the cash value ofall assets. Multiply the total cash value of all assets by .02. The product isthe "imputed income" from assets. Then, add the actual income from all assets.The greater of the imputed income from assets or the actual income from assetsis included in the calculation of annual income.

In 2014, HUD released HSG Notice 14-15Passbook Savings Rate Effective February 1, 2015 and Establishing FuturePassbook Savings Rates.In this Notice, HUD announced a reduction ofthe passbook savings rate to .06%. The effective date of this change wasFebruary 2015. Site software vendors updated their programs to reflect this newrate.(HUD has stated that the Handbook will beupdated in a future release.)

This Notice introduced a much needed reduction in thepassbook savings rate to more accurately reflect current national averages. Inaddition, HUD stated that, "As interest rates may fluctuate, Multifamily Housingacknowledges the need to adjust the passbook savings rate at least annually torepresent current national averages." The passbook savings rate is based onthe national average provided by the Federal Deposit Insurance Corporation.

Last week, HUD issued a new Notice regarding the passbooksavings rate - HSG Notice 16-01Passbook Savings Rate Effective February 1, 2016.

The passbook savingsrate has not changed since the 2014 Notice.The passbook savings rate to be used for all move-in, initial, annual, andinterim recertification when a family has net assets over $5,000 is .06%. This.06% rate must be used until HUD Multifamily Housing publishes and makeseffective a new passbook savings rate.

Join Us ForOnline Training In February

(Classes are filling fast!)

Classes Offered


EIV Income Discrepancy(Class length 2.5 hours)

February 16, 2016
Section 504Coordinator(Class length 2.5 hours)February 17, 2016
CriminalActivity, Screening & Tenancy(Class length 2.5 hours)February 18, 2016

Students whoregister and attend the entire class will receive a certificate of completion.

Foradditional information or to register, visit our web site at

Trainingmaterials and sample forms are provided to facilitate instruction. The class isdelivered online (this is not a conference call). Students must have workingspeakers. Students with headsets/microphones may ask questions during theclass. Students without headsets may type questions during the class.

An emailaddress is available for students who have questions after the training.

Instructor-ledTraining From RBD


JoinMary Rossfor a two-day training session thatcombines a review of the latest trends and hottest topics of the day along withanswers to some of the most frequently encountered problems facing affordablehousing owners and agents. Mary utilizes her years of experience trainingaffordable housing professionals to cover the latest topics and trends whileblending in policy and procedure discussions critical to staying compliant.

Trainingincludes sample forms, notices and checklists.

To view the full,two-day agenda, click on the following link:

Class Schedule at a Glance (In Location Order)




Albuquerque, NMHUD Hot TopicsFebruary 23 & 24, 2016

Toregister for training, visit our web site atwww.rbdnow.comor contact our Training Coordinator (Larue Marin)

To sign up for the HUDBlast,visit our web site Just enter your email address in the box in the center ofthe home page.You canview previously posted HUDBlasts from our web site at

We also encourage you to sign-up for theListserv, so you can receive current RHIIP related information from HUD canview the RHIIP Tips Archives, under "Listserv-Multifamily RHIIP Tips" at

RBD does not act as a legal advisor nor as a regulatory governingagency. The recipient should understand that any materials or commentscontained hereinare not designed for, nor should be relied upon as a source oflegal guidance or as a final authority with respect to any particularcircumstance. Ross Business Development, Inc. makes no warranty ofmerchantability or fitness for a particular purpose or any other warranty of anytype. Owners and management should seek competent legal advice in developing andcarrying out policies and procedures. While we have been diligent in ourefforts to provide comprehensive and accurate regulatory information, RossBusiness Development, Inc. shall not be responsible for errors or inaccuracies.