# Electronic Transmission of Required Family Data for Public Housing, Indian Housing, and the Section 8 Rental Certificate, Rental Voucher, and Moderate Rehabilitation Programs > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A94-24626 ## Record - **Collection:** Federal Register - **Document type:** Uncategorized Document - **Published:** October 6, 1994 ## Text DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Office of the Assistant Secretary for Public and Indian Housing 24 CFR Parts 813, 905, 908, and 913 [Docket No. R-94-1747; FR-3730-P-01] RIN 2577-AB47 Electronic Transmission of Required Family Data for Public Housing, Indian Housing, and the Section 8 Rental Certificate, Rental Voucher, and Moderate Rehabilitation Programs AGENCY: Office of the Assistant Secretary for Public and Indian Housing, HUD. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule requires all housing agencies (HAs) to submit certain data electronically to HUD in a HUD prescribed format. For HAs that are not already automated or who determine that automation is not cost-effective, transmission of the data through the use of a service bureau is permitted. Electronic transmission is necessary because the manual submission of HUD forms has become a burden to HAs and HUD. This proposed rule applies to projects administered under the public housing, Indian housing, and Section 8 Rental Certificate, Rental Voucher, and Moderate Rehabilitation programs. A similar rule, 24 CFR part 208, was issued with respect to multifamily subsidized projects administered under programs subject to the oversight of the Assistant Secretary for Housing-Federal Housing Commissioner. DATES: Comments due date: December 5, 1994. ADDRESSES: Comments on this proposed rule may be submitted to the Rules Docket Clerk, Office of General Counsel, Room 10276, Department of Housing and Urban Development, 451 Seventh Street, S.W., Washington, D.C. 20410. Communications should refer to the above docket number and title. A copy of each communication submitted will be available for public inspection between 7:30 a.m. and 5:30 p.m. at the above address. Facsimile (FAX) comments are not acceptable. FOR FURTHER INFORMATION CONTACT: For Technical Information--Katherine M. Dillon, Director, Information Services Division, Office of Public and Indian Housing, Room 4248, telephone (202) 708-5285. For Program Information--Edward C. Whipple, Director, Occupancy Division, Office of Public and Indian Housing, Room 4206, telephone (202) 708-0744, Department of Housing and Urban Development, 451 Seventh Street, S.W., Washington, D.C. 20410. Hearing or speech-impaired individuals may call HUD's TDD number (202) 708-4594. (These telephone numbers are not toll- free.) SUPPLEMENTARY INFORMATION: I. Paperwork Burden The information collection requirements contained in this proposed rule have been submitted to the Office of Management and Budget (OMB) for review under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501- 3520). The submission amends the current requirements approved by OMB on January 26, 1994 (Number: 2577-0083). The public reporting burden for the collection of information requirements contained in this proposed rule is estimated to include the time for reviewing the instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Information on the estimated public reporting burden is provided under the Preamble heading, Other Matters. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Department of Housing and Urban Development, Rules Docket Clerk, 451 Seventh Street, SW, Room 10276, Washington, DC 20410-0500; and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for HUD, Washington, DC 20503. II. Background A. Impetus for Change Housing agencies have been submitting to HUD data forms for each family assisted under the public housing, Indian housing, and Section 8 Rental Certificate, Rental Voucher and Moderate Rehabilitation Programs. The Forms HUD-50058, Family Report, and HUD-50058-FSS, Family Self-Sufficiency Addendum, concern family characteristics, rent, income, subsidy payments and participation in the Family Self- Sufficiency Program. As of March 1, 1994, these forms were being processed by the Department's central processing facility. Approximately 85 percent of reporting agencies (3,655 HAs) are submitting paper forms. This extensive processing of paper forms has become a burden to the HAs as well as to HUD. To reduce the cost to the Department of processing this information and to improve its accuracy, the Department is issuing this proposed rule to require that the information be submitted electronically. The change is expected to contribute significant savings to the Department, in a time when budget contraints demand such savings. Housing agencies that report on paper have the time consuming task of completing the calculations which are prone to error. The Department edits the information on the forms. When errors are found, HAs are notified (by letter) and requested to make appropriate corrections. The time spent by HAs in initiating electronic transmission and making corrections to the electronic data submissions will be offset by future savings in the reexamination and reporting process, as well as increased accuracy and speed associated with the admission, reexamination and reporting processes, and the reduced number of HUD adjustments and paperwork required by these adjustments. This change to electronic submission of family data will also encourage HAs to automate other functions or to automate this particular function as they automate others, in the course of revising their own management practices. The rule will require HAs to submit data electronically via telephone modem, rather than through tape, diskette, or paper. However, the rule also provides that the Department may approve transmission of the data by tape or diskette where the Department determines that the cost of telephonic transmission would be excessive. (It is contemplated that this would only occur in a few instances, involving very large HAs.) B. Voluntary Automation Several years ago, the Department began to develop a computer system to collect all rental assistance data and ensure the accuracy of subsidy payments. This system serves as the basis for the Department's electronic data transmission requirements in lieu of hard copy. In July 1993, the Department distributed a Form HUD-50058 Information Packet, which gave instructions for submitting the data electronically. The Department encouraged program participants to begin transmitting data electronically to HUD (via tape, diskette, or telephonic network). Approximately 600 housing agencies have responded by submitting the data electronically. Recently, the Department initiated a pilot test with 20 HAs using the telephonic network mode (via SprintMail--a commercial software package) to evaluate HA capability for data transmission. In addition, a test program (for use by all HAs) has been initiated to assure that errors are not introduced by the sender's software. Both processes will facilitate implementation of this rule. These electronic transmissions consist of information requested on the forms, organized into various categories and transmitted in an ASCII fixed format (not field delimited). These fixed format ASCII files will deliver the data with the field lengths as specified by HUD in the July 1993 guide. (This guide may be obtained from the office listed above for program information.) The Department encourages HAs to begin electronic transmission as soon as the capability exists. An earlier electronic transmission will allow timely correction of errors found during the data load into the automated software. These corrections will then reduce the number of errors formerly found when manual information entered the Department's system. Early electronic transmission will also help minimize an initial surge of data in the system from the number of currently nonautomated HAs. C. Action Required Nonautomated HAs (i.e. those who currently prepare the Forms HUD- 50058 and HUD-50058-FSS manually) should immediately begin to obtain information on the cost of purchasing hardware or software, or both, to determine whether it is financially feasible to purchase these items or whether they should contract out the electronic transmission of data to another entity. These HAs must: (1) Complete the search and either purchase the necessary hardware and software, or sign service contracts, (2) complete their data loading, and (3) begin electronic transmission by one year after the publication of the final rule. While the Department would prefer each HA to obtain its own hardware and software, HAs may elect to contract out the electronic transmission function. However, when HAs contract out the electronic transmission function, they are still required to continue to retain the ability to monitor the day-to-day operations of the projects and be able to demonstrate that ability to their local HUD Office. In recognition of the difficulty some HAs may have in conversion to electronic submission of data, the rule will permit HUD Field Offices to grant extensions of time beyond the stated implementation date for commencement of electronic submission under certain circumstances. D. Cost Housing agencies may be concerned about funding the initial cost of automation. For public and Indian housing, the costs of the electronic transmission of the correctly formatted data, including either the purchase and maintenance of computer hardware or software, or both; the cost of contracting for those services; or the cost of centralizing the electronic transmission function; are eligible operating expenses and can be included in the operating budget. However, they are not eligible for additional operating subsidy funding. Automating this management function also is an allowable expense under the Comprehensive Improvement Assistance Program and the Comprehensive Grant Program. For Section 8 programs, the costs may be paid from ongoing administrative fees or the Section 8 operating reserve. Ultimately, the cost of automating this function will be recovered in reduced administrative costs. The Department anticipates that the large number of vendors competing in the marketplace will cause the cost of automation and electronic transmission to be reasonable, and a large number of HAs will therefore be able to purchase and maintain their own equipment. However, the decision to purchase and maintain the necessary equipment and services or to contract for the automation and electronic transmission function, will only be made by each housing agency. III. Parts Amended This proposed rule would add a new part 908 to specify the electronic submission requirements. The requirements for obtaining and verifying family income information in the various programs are found in Sec. 813.109 for the Section 8 Rental Certificate, Rental Voucher and Moderate Rehabilitation programs, in Sec. 905.315 for the Indian housing program, and in Sec. 913.109 for the public housing program. This rule would add a new paragraph to each of these sections to cross reference the requirements of the new part 908. IV. Other Matters A. Environmental Impact In accordance with 40 CFR 1508.4 of the regulations of the Council on Environmental Quality and 24 CFR 50.20(o) of the HUD regulations, the policies and procedures contained in this proposed rule relate only to HUD administrative procedures and, therefore, are categorically excluded from the requirements of the National Environmental Policy Act. B. Federalism Impact The General Counsel, as the Designated Official under section 6(a) of Executive order 12612, Federalism, has determined that the policies contained in this proposed rule will not have substantial direct effects on states or their political subdivisions, or the relationship between the Federal government and the states, or on the distribution of power and responsibilities among the various levels of government. Specifically, this proposed rule is directed to housing agencies that operate HUD-assisted housing, whose functions and authority remain unchanged. It merely changes the format of data submitted to HUD to make its transmission more accurate and efficient. It will not impinge upon the relationship between the Federal Government and State and local governments. As a result, the proposed rule is not subject to review under the order. C. Impact on the Family The General Counsel, as the Designated Official under Executive Order 12606, The Family, has determined that this proposed rule does not have potential for significant impact on family formation, maintenance, and general well-being, and, thus, is not subject to review under the order. No significant change in existing HUD policies or programs will result from promulgation of this proposed rule, as those policies and programs relate to family concerns. D. Regulatory Flexibility Act The Secretary, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)) has reviewed and approved this proposed rule, and in so doing certifies that this proposed rule will not have a significant economic impact on a substantial number of small entities. Because this proposed rule changes the way in which the data is transmitted to HUD, and all costs associated with implementation of the electronic transmission will be considered allowable project operating costs, the proposed rule is not expected to have a significant economic impact. E. Regulatory Agenda This proposed rule was not listed in the Department's Semiannual Agenda of Regulations published on April 25, 1994 (59 FR 20424) under Executive Order 12866 and the Regulatory Flexibility Act, and therefore was submitted to the Committee on Banking, Housing and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives under section 7(o) of the Department of Housing and Urban Development Act. F. Catalog The Catalog of Federal Domestic Assistance numbers for the programs covered by this proposed rules are 14.850, 14.855, 14.856, and 14.857. G. Paperwork Reduction Act The information collection requirements contained in this proposed rule have been submitted to the Office of Management and Budget under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520). In accordance with OMB regulations, the following chart is provided to describe the collection of information requirements. ---------------------------------------------------------------------------------------------------------------- Number of Total annual Hours/minutes FY Transmission mode respondents responses per response Total hours ---------------------------------------------------------------------------------------------------------------- 1994*........... Paper/Diskette/Tape/Telephonic.. 4,500 4,124,000 1 hour......... 4,124,000 1995............ Paper/Diskette/Tape/Telephonic.. 4,500 4,124,000 50 minutes..... 3,435,300 1996............ Telephonic Only................. 4,500 4,124,000 30 minutes..... 2,062,000 ---------------------------------------------------------------------------------------------------------------- *Burden Hours Currently in OMB Inventory. List of Subjects 24 CFR Part 813 Grant programs--housing and community development, Rent subsidies, Reporting and recordkeeping requirements, Utilities. 24 CFR Part 905 Aged, Energy conservation, Grant programs--housing and community development, Grant programs--Indians, Homeownership, Indians, Individuals with disabilities, Lead poisoning, Loan programs--housing and community development, Loan programs--Indians, Low and moderate income housing, Public housing, Reporting and recordkeeping requirements. 24 CFR Part 908 Computer technology--automatic data processing, data processing, electronic data processing, Subsidies--grant programs, Rent subsidies. 24 CFR Part 913 Grant programs--housing and community development, Public housing, Reporting and recordkeeping requirements. Accordingly, title 24, chapters VIII and IX, of the Code of Federal Regulations would be amended as follows: PART 813--DEFINITION OF INCOME, INCOME LIMITS, RENT AND REEXAMINATION OF FAMILY INCOME FOR THE SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAMS AND RELATED PROGRAMS 1. The authority citation for part 813 would continue to read as follows: Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n, and 3535(d). 2. In Sec. 813.109, a new paragraph (c) would be added, to read as follows: Sec. 813.109 Initial determination, verification, and reexamination of family income and composition. * * * * * (c) See 24 CFR part 908 for requirements for transmission of data to HUD. * * * * * PART 905--INDIAN HOUSING PROGRAMS 3. The authority citation for part 905 would be revised to read as follows: Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437a, 1437aa, 1437bb, 1437cc, 1437ee, and 3535(d). 4. In Sec. 905.315, paragraphs (a)(2) and (a)(3) would be redesignated as paragraphs (b) and (c), and a new paragraph (d) would be added, to read as follows: Sec. 905.315 Initial determination, verification, and reexamination of family income and composition. * * * * * (d) See 24 CFR part 908 for requirements for transmission of data to HUD. 5. A new part 908, consisting of Secs. 908.101 through 908.112, would be added to chapter IX, to read as follows: PART 908--ELECTRONIC TRANSMISSION OF REQUIRED FAMILY DATA FOR PUBLIC HOUSING, INDIAN HOUSING, AND THE SECTION 8 RENTAL CERTIFICATE, RENTAL VOUCHER, AND MODERATE REHABILITATION PROGRAMS Sec. 908.101 Purpose. 908.104 Requirements. 908.108 Cost. 908.112 Extension of time. Authority: 42 U.S.C. 1437f, 3535(d), 3543, 3544, and 3608a. Sec. 908.101 Purpose. The purpose of this part is to require Housing Agencies (HAs) that operate public housing, Indian housing, or Section 8 Rental Certificate, Rental Voucher and Moderate Rehabilitation programs to electronically submit certain data to HUD for those programs. This electronically submitted data is required for HUD Forms HUD-50058, Family Report, and HUD-50058-FSS, Family Self-Sufficiency Addendum. Sec. 908.104 Requirements. (a) Automated HAs. Housing agencies that currently use automated software packages to transmit Forms HUD-50058 and HUD-50058-FSS information by tape or diskette to the Department's data processing contractor must convert to telephonic electronic transmission of that data in a HUD specified format by [insert date 120 days after publication of the final rule]. (b) Nonautomated HAs. Housing agencies that currently prepare and transmit the HUD-50058 and HUD-50058-FSS information to HUD paper must: (1) Complete a vendor search and obtain either: (i) The necessary hardware and software required to develop and maintain an in-house automated data processing system (ADP) used to generate electronic submission of the data for these forms via telephonic network; or (ii) A service contract for the operation of an automated system to generate electronic submission of the data for these forms via telephonic network; (2) Complete their data loading; and (3) Begin electronic transmission by [insert date 365 days after publication of the final rule]. (c) Electronic transmission of data. Electronic transmission of data consists of submission of all required data fields (correctly formatted) from the forms HUD-050058 and HUD-50058-FSS telephonically, in accordance with HUD instructions. Regardless of whether an HA obtains the ADP system itself or contracts with a service bureau to provide the system, the software must be periodically updated to incorporate changes or revisions in legislation, regulations, handbooks, notices, or HUD electronic transmission data format requirements. (d) Service contract. HAs that determine that the purchase of hardware and/or software is not cost effective may contract out the electronic data transmission function to organizations that provide such services, including, but not limited to the following organizations: local management associations and management agents with centralized facilities. HAs that contract out the electronic transmission function must retain the ability to monitor the day-to-day operations of the project at the HA site and be able to demonstrate the ability to the relevant HUD Field Office. (e) Notwithstanding the provisions of paragraphs (a) and (b) of this section, the Department may approve transmission of the data by tape or diskette if it determines that the cost of telephonic transmission would be excessive. Sec. 908.108 Cost. (a) General. The costs of the electronic transmission of the correctly formatted data, including either the purchase and maintenance of computer hardware or software, or both, the cost of contracting for those services, or the cost of centralizing the electronic transmission function, shall be considered Section 8 Administrative expenses, or eligible public housing operating expenses that can be included in the public housing operating budget. At the HA's option, the cost of the computer software may include service contracts to provide maintenance or training, or both. (b) Sources of funding. For public and Indian housing, costs may be covered from operating subsidy for which the HA is already eligible, or the initial cost may be covered by funds received by the HA under HUD's Comprehensive Improvement Assistance Program (CIAP) or Comprehensive Grant Program (CGP). For Section 8 programs, the costs may be covered from ongoing administrative fees or the Section 8 operating reserve. Sec. 908.112 Extension of time. The HUD Field Office may grant an HA an extension of time, of a reasonable period, for implementation of the requirements of Sec. 908.104, if it determines that such electronic submission is infeasible because of one of the following: (a) Lack of staff resources; (b) Insufficient financial resources to purchase the required hardware, software or contractual services; or (c) Lack of adequate infrastructure, including, but not limited to, the inability to obtain telephone service to transmit the required data. PART 913--DEFINITION OF INCOME, INCOME LIMITS, RENT AND REEXAMINATION OF FAMILY INCOME FOR THE PUBLIC HOUSING PROGRAM 6. The authority citation for part 913 would continue to read as follows: Authority: 42 U.S.C. 1437a, 1437d, 1437n, and 3535(d). 7. In Sec. 913.109, a new paragraph (c) would be added, to read as follows: Sec. 913.109 Initial determination, verification, and reexamination of family income and composition. * * * * * (c) See 24 CFR part 908 for requirements for transmission of data to HUD. * * * * * Dated: September 23, 1994. Michael B. Janis, General Deputy Assistant Secretary for Public and Indian Housing. [FR Doc. 94-24626 Filed 10-5-94; 8:45 am] BILLING CODE 4210-33-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-24626. Public record. Not legal advice.