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Annual Inflationary Adjustments and Passbook Rate

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Annual Inflationary Adjustments and Passbook Rate

Annual Inflationary Adjustments and Passbook Rate

Applicability: Programs that are governed by HUD’s regulations found in 24 CFR Part 5 or are governed by regulations that cross reference 24 CFR Part 5: Public Housing, Section 8 Housing Choice Voucher (HCV), Section 8 project-based rental assistance (PBRA), non-insured 236 projects with Interest Reduction Payments (236 IRP), Section 202/811 PRAC, Senior Preservation Rental Assistance Contracts (SPRAC), 811 PRA, HOME Investment Partnerships Program, HOME-American Rescue Plan Program, Housing Trust Fund, and Housing Opportunities for Persons With AIDS (HOPWA).

Background: On February 14, 2023, HUD published the Housing Opportunity Through Modernization Act (HOTMA) Final Rule. The Final Rule requires that certain amounts used to make income, asset, and eligibility determinations be adjusted by an inflationary factor on an annual basis. Recipients of funding under the above-covered programs, including PHAs, MFH Owners, and Grantees, must use the HUD-published values when determining income, net family assets, and adjusted income for income examinations in accordance with the HOTMA Final Rule and other implementation guidance.

Publication Timing: Around August each year, HUD will calculate the inflation factor, recalculate the inflation-adjusted values, and post the revised figures effective for the next calendar year on this webpage. The revised amounts will become effective on January 1st of each year. The amounts effective January 1, 2024, were published in the HOTMA final rule. HUD’s proposed methodologies for 1) calculating and 2) applying the inflationary factor to the values specified in the final rule will be published in the Federal Register along with an invitation for the public to comment on the methodologies. Once final, the methodologies will be published in the Federal Register and to this webpage. Going forward, HUD will solicit public comment only if the Department proposes to change either of the methodologies.

Along with the inflationary adjustments, HUD will also annually publish a passbook rate to become effective January 1st of each year. The passbook rate will be based on the Federal Deposit Insurance Corporation (FDIC) National Deposit Rate for savings accounts, which is an average of national savings rates published monthly. PHAs/MFH Owners/Grantees must use the HUD-published passbook rate when calculating imputed asset income for all income examinations. HUD published the passbook rate methodology in joint Notice PIH 2023-27 / H 2023-10.

PHAs/MFH Owners should refer to joint Notice PIH 2023-27 / H 2023-10 for additional information on HOTMA implementation.

Instructions: Please click on the table below to view the annual inflationary factor1, the revised Inflationary Adjustments (including the corresponding regulatory references and rounding methodology), and the annual Passbook Rate.

1 The first inflationary factor will not be published until August 2024.