Privacy Act of 1974Amended System of Records

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Administration

[Docket No. N-95-3914; FR 3896-N-01]

Privacy Act of 1974--Amended System of Records

AGENCY: Office of the Assistant Secretary for Administration, HUD.

ACTION: Notice; Modification of an existing system of records.

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SUMMARY: Pursuant to the provision of the Privacy Act of 1974, as

amended (5 U.S.C. 552a) the Assistant Secretary for Public and Indian

Housing is amending the system of records titled, ``Tenant Eligibility

Verification Files''--HUD/PIH-1, previously published at 58 FR 37600;

July 12, 1993 and amended at 59 FR 14869; March 30, 1994. This system

of records contains computer matching and tenant eligibility

verification records necessary to support the identification of tenants

who have been or may be obtaining excessive rental housing assistance.

The system of records also supports referrals of information concerning

those tenants to entities that administer HUD rental assistance

programs (i.e., housing agencies [which includes public housing

agencies and Indian housing authorities], owners of subsidized

multifamily projects, and management agents) and to law enforcement

agencies for possible administrative or legal actions, as appropriate.

However, HUD may not redisclose to entities that administer HUD

programs information that HUD obtains from the Social Security

Administration (SSA) and the Internal Revenue Service (IRS), pursuant

to 26 U.S.C. 6103(l)(7)(D)(ix)--a section of the Internal Revenue Code

added by section 13403 of the Omnibus Budget Reconciliation Act of

1993, Pub. L. 103-66.

Amendments to the system of records: (a) Expand the scope of HUD/

PIH-1 to include: Tenant records for all HUD assisted housing programs;

earned and unearned income records that HUD will obtain from the SSA

and the IRS, respectively; Title II (social security) and Title XVI

(supplemental security income) records that HUD will obtain from the

SSA; records provided by other Federal agencies for matching to tenant

data that may affect determinations of eligibility for, or the amount

of, HUD or other Federal benefits that tenants receive, (b) cite legal

authorities for the SSA and the IRS records to be included in HUD/PIH-

1, (c) cite routine uses for the SSA and the IRS records, (d) delete

specific reference to United States Postal Service records, (e)

increase the retention period for the HUD/PIH-1 records from 6 months

to 1 year, (f) incorporate the additional routine use previously

published at 59 FR 14869; March 30, 1994, concerning referral to

Federal employers to ensure effective implementation of the Standard of

Ethical Conduct for Employees of the Executive Branch, and (g) add a

routine use concerning statistical information [[Page 21546]] needed to

evaluate the effectiveness of computer matching, income verification

and related administrative or legal actions taken.

The exemptions of HUD/PIH-1 from certain provisions of the Privacy

Act of 1994, described at 59 FR 9406; February 28, 1994, continue to

apply to HUD/PIH-1, as amended.

EFFECTIVE DATE: This proposal shall become effective without further

notice on June 1, 1995, unless comments are received during or before

that date which would result in a contrary determination.

ADDRESSES: Interested persons are invited to submit comments regarding

this notice to the Rules Docket Clerk, Office of General Counsel, Room

10276, Department of Housing and Urban Development, 451 Seventh Street,

SW, Washington, DC 20410-0500. Communications should refer to the above

docket number and title. An original and four copies of comments should

be submitted. Facsimile (FAX) comments are not acceptable. A copy of

each communication submitted will be available for public inspection

and copying between 7:30 a.m. and 5:30 p.m. weekdays at the above

address.

FOR FURTHER INFORMATION CONTACT: Jeanette Smith, Departmental Privacy

Act Officer, Telephone Number (202) 708-2374, concerning Privacy Act

matters. David L. Decker, Director, Computer Matching Activities,

Office of the Public and Indian Housing Comptroller, Telephone Number

(202) 708-0099, concerning computer matching matters. [These are not

toll free numbers.]

SUPPLEMENTARY INFORMATION: The amendments to this system of records are

needed to: (a) Expand and improve the effectiveness of HUD's computer

matching programs by consolidating responsibilities concerning assisted

housing programs into one office, (b) implement provisions of the

Omnibus Budget Reconciliation Act of 1993 that permit SSA and IRS

disclosure to HUD of earned and unearned income information,

respectively, for tenants who receive housing assistance from HUD's

programs, (c) develop more efficient and effective methods for

verifying social security and supplemental security income information

used in determining tenants' eligibility for, and amount of, housing

assistance, and (d) permit inclusion of automated records of other

Federal agencies for matching to tenant data that may affect

determinations of eligibility for, or the amount of, HUD or other

Federal benefits that tenants receive.

Regarding item (c) above, entities that administer HUD's assisted

housing programs currently request from the SSA social security and

supplemental security income information needed to determine tenants'

eligibility for, and level of benefits, by submitting a mark sense card

to the SSA. Then the SSA processes the card and mails the income

information to the entity administering HUD assisted housing programs.

The SSA has advised HUD of plans to terminate obsolete mark sense card

operations, and requested that HUD work with SSA is developing an

alternative process. HUD and the SSA have concluded that computer

matching provides a more efficient and more effective technique for

providing social security and supplemental security information to

entities that administer HUD's assisted housing programs than the mark

sense card operations. HUD plans to use HUD/PIH-1 records in

identifying tenants who have underreported social security and

supplemental security information.

Entities that administer HUD's assisted housing programs may

continue to use the mark sense card processing operations, which is

also known as the Third Party Query System (TPQS), until further

notice. HUD plans to initiate testing of computer matching to verify

social security and supplemental income information during Fiscal Year

1995. When HUD has demonstrated success in the computer matching

process and is ready for large-scale implementation of the matching,

HUD will, in coordination with SSA, inform entities that administer HUD

assisted housing programs to discontinue use of the TPQS.

HUD will also use HUD/PIH-1 in reporting potential income

disparities to tenants or the entities that administer HUD's assisted

housing programs, as permitted under law. A notice of the HUD/SSA/IRS

computer matching program concerning earned and unearned income, social

security, and supplemental security income is published in today's

Federal Register.

A report of HUD's intention to establish the system has been

submitted to the Office of Management and Budget (OMB), the Senate

Committee on Governmental Affairs, and the House Committee on

Government Operations pursuant to paragraph 4c of Appendix I to OMB

Circular No. A-130, ``Federal Agency Responsibilities for Maintaining

Records About Individuals,'' July 25, 1994; 59 FR 37914.

Authority: 5 U.S.C. 552a, 88 Stat. 1896; sec. 7(d) Department of

Housing and Urban Development Act (41 U.S.C. 3535(d)).

Issued at Washington, DC, April 20, 1995.

Marilynn A. Davis,

Assistant Secretary for Administration.

HUD/PIH-1

Tenant Eligibility Verification Files.

Headquarters.

Tenants receiving housing assistance provided by programs

administered by the Department of Housing and Urban Development, or

information concerning those tenants obtained from other Federal or

State agencies, housing agencies, owners, and management agents.

Records consist of: (1) Automated tenant data obtained from HUD's

HUD/H-11, Tenant Housing Assistance and Contract Verification Data,

published at 59 FR 6035; February 9, 1994, (two HUD automated systems--

the Multifamily Tenant Certification System and the Tenant Rental

Assistance Certification System--are the primary components of HUD/H-

11); (2) automated tenant data provided by housing agencies, owners or

management agents (generally these records are available in HUD/H-11);

(3) automated earned income data that the SSA provides under 26 U.S.C.

6103(l)(7)(A); (4) automated unearned income data that the IRS provides

to HUD under 26 U.S.C. 6103(l)(7)(B); (5) automated Title II (social

security) and Title XVI (supplemental security income) data that the

SSA provides to HUD under a routine use; (6) automated wage, salary and

annuity data from State wage information collection agencies; (7)

automated data from the Office of Personnel Management's General

Personnel Records (OPM/GOVT-1), the Civil Service Retirement and

Insurance Records System (OPM/Central-1); (8) the Department of

Defense's Defense Manpower Data Center Data Base (S322.10.DMDC); (9)

automated records from the SSA's Master Files of Social Security Number

Holders, known as the Enumeration Verification System; (10)

applications for housing assistance and other related documentation

obtained from tenant case files maintained by housing agencies, owners,

and management; (11) data received from employers confirming income or

deductions supporting determinations of eligibility for, and the amount

of, housing assistance benefits; (12) automated records provided by

other Federal agencies for matching to tenant [[Page 21547]] data that

may affect determinations of eligibility for, or the amount of, HUD or

other Federal benefits that tenants receive; (13) automated records

provided by other Federal agencies under the investigative exclusion of

the Computer Matching and Privacy Protection Act of 1988; and (14)

automated records provided by housing agencies, owners and management

agents regarding actions taken on computer matching results.

The records will be obtained to detect excessive assisted housing

that tenants receive using income information as provided under

sections 3003 and 13403 of the Omnibus Budget Reconciliation Act of

1993, Public Law, 103-66; and section 904 of the Stewart B. McKinney

Homeless Assistance Amendments Act of 1988, Public Law 100-628.

The Omnibus Budget Reconciliation Act of 1993, Public Law 103-66,

permitted HUD to request from the Commissioner of the SSA and the

Secretary of the Treasury, SSA and IRS earned and unearned income

information, respectively, needed to verify the incomes of tenants who

receive housing assistance. However, the Act precludes HUD from

redisclosing that information to entities that administer HUD programs

(i.e., housing agencies, owners and management agents). But the Act

allows HUD to notify those entities that disparities exist between the

tenant-reported incomes and income obtained from independent income

sources, i.e., the SSA, the IRS or State wage data. HUD plans to

identify disparities between tenant-reported and independent income

source information, to notify tenants of disparities, and to request

that the tenants disclose independent income source data to entities

administering HUD programs.

The McKinney Amendments of 1988 authorized HUD to request wage and

claim information from State agencies responsible for the

administration of State unemployment law, to permit computer matching

in HUD's rental assistance programs.

Section 165 of the Housing and Community Development Act of 1987,

Public Law 100-242; the National Housing Act, 12 U.S.C. 1701-1750g

authorizes HUD to require applicants and participants (including all

members of their household six (6) years of age and older) in HUD-

administered programs involving housing assistance to disclose to HUD

their social security numbers as a condition of initial or continuing

eligibility for participation.

Applicable laws concerning HUD's assisted housing programs include:

The United States Housing Act of 1937, 42 U.S.C. 1437-1437o; and

section 101 of the Housing and Urban Development Act of 1965, 12 U.S.C.

1701s.

1. Records included in the system may be used in conducting

computer matching to aid in the identification of tenants who have

received excessive rental housing assistance.

2. Records that HUD obtains from the SSA and the IRS under the

authority of 26 U.S.C. 6103(l)(7), may be disclosed only to the tenant/

taxpayer, to HUD employees responsible for investigating or prosecuting

such violation or enforcing or implementing a statute, rule or

regulation, or as otherwise permitted under 26 U.S.C. 6103.

3. Records that indicate a potential violation of law, whether

criminal, civil or regulatory in nature, except for records obtained

from the SSA and the IRS under 26 U.S.C. 6103(l)(7), may be disclosed

to the appropriate Federal, State or local agency charged with the

responsibility for investigating or prosecuting such violation or

enforcing or implementing a statute, rule or regulation.

4. Records, except for those obtained from the SSA or IRS under the

authority of 26 U.S.C. 6103(l)(7), may be disclosed to a congressional

office in response to an inquiry from that congressional office made at

the request of the individual who is the subject of the records.

5. Records, with the exception of those obtained pursuant to 26

U.S.C. 6103(l)(7), may be disclosed to housing agencies, owners and

management agents in order to assist them in determining tenants'

eligibility for housing assistance, and the amount of that assistance

and to facilitate recovery of money or property or other administrative

actions, i.e., eviction, necessary to promote the integrity of

programs.

6. Records, except for those obtained from the SSA and the IRS

under 26 U.S.C. 6103(l)(7), may be disclosed during the course of an

administrative proceeding where HUD or a housing agency, owner or

management agent is a party to the litigation and disclosure is

relevant and reasonably necessary to adjudicate the matter.

7. Records, except for those obtained from the SSA and the IRS

under 26 U.S.C. 6103(l)(7), may be disclosed to a Federal agency, in

response to its request, in connection with the hiring or retention of

an employee, the issuance of a security clearance, the reporting of an

investigation of an employee, the letting of a contract, or the

issuance of a license, grant or other benefit by the requesting agency,

to the extent that the record is relevant and necessary to the

requesting agency's decision on the matter.

8. Records, except for those obtained from the SSA and the IRS

under 26 U.S.C. 6103(l)(7), may be disclosed to a Federal agency to

initiate Federal salary or annuity offsets as necessary to collect

excessive housing assistance received by the tenant.

9. Records, except for those obtained from the SSA and the IRS

under 26 U.S.C. 6103(l)(7), concerning an individual's receipt of

excessive housing assistance, including the individual's actions to

repay the same, may be disclosed to the Federal agency that employs

such individual, for the purpose of notifying the employer of potential

violation of the Standards of Ethical Conduct for Employees of the

Executive Branch.

10. Records may be used to provide statistical information for use

in evaluating the effectiveness of computer matching, income

verification and related administrative or legal actions taken.

Records are stored manually in tenant case files and electronically

in office automation equipment. Records, except for those obtained from

the SSA and the IRS under 26 U.S.C. 6103(l)(7)(A) and (B), may also be

stored on mainframe computer facilities.

Records may be retrieved by manual or computer search of indices by

the name, social security number, housing agency, owner or management

agent.

Records are maintained in locked file cabinets or in metal file

cabinets in secured rooms or premises with access limited to those

persons whose official duties require access. Computer files and

printed listings are maintained in locked cabinets. Computer terminals

are secured in controlled areas which are locked when unoccupied.

Access to automated records is limited to authorized personnel who must

use a password system to gain access. HUD will safeguard the SSA and

the IRS records obtained pursuant to 26 U.S.C.

[[Page 21548]] 6103(l)(7)(A) and (B) in accordance with 26 U.S.C.

6103(p)(4) and the IRS's ``Tax Information Security Guidelines for

Federal, State and Local Agencies.''

Only those computer files and printouts created from the computer

matching that meet predetermined criteria are maintained. These records

will be destroyed as soon as they have served the matching program's

purpose. All other records will be destroyed as soon as possible within

1 year. Paper listings containing personal identifiers will be

shredded. Computer source files provided by other organizations will be

returned to those organizations or destroyed in accordance with

computer matching agreements.

Except for tax return information that HUD may not redisclose to

housing agencies, owners or agents, the information may be referred to

housing agencies, owners or agents for administrative actions, i.e.,

recoupment of excessive housing assistance. Information obtained

through computer matching and tenant case file reviews will be

destroyed as soon as follow-up processing of this information is

completed, unless the information is required for evidentiary reasons

or needed by housing agencies, owners and agents for use in program

eligibility determinations. When needed for evidentiary documentation,

the information will be referred to the HUD Office of Inspector General

(OIG) or other appropriate Federal, State or local agencies charged

with the responsibility for investigating or prosecuting such

violations. When referred to the HUD OIG the information then becomes a

part of the Investigative Files of the Office of Inspector General,

HUD/OIG-1.

Director, Computer Matching Activities, Office of the Public and

Indian Housing Comptroller, U.S. Department of Housing and Urban

Development, 451 Seventh Street, SW., Room 5156, Washington, DC. 20410.

Records are generally exempt from Privacy Act access. However, the

System Manager will give consideration to a request from an individual

for notification of whether the system contains records pertaining to

that individual.

Records are generally exempt from Privacy Act access. However, the

System Manager will give consideration to a request from an individual

for access to records pertaining to that individual. The procedures for

requesting access to records appear in 24 CFR part 16.

Records are generally exempt from Privacy Act amendment or

correction. However, the System Manager will give consideration to a

request from an individual for amendment or correction of records

pertaining to that individual. The procedures for amendment or

correction of records appear in 24 CFR part 16.

The Assistant Secretary for Public and Indian Housing collects

information from a variety of sources, including: Housing agencies, the

Assistant Secretary for Housing-Federal Housing Commissioner (tenant

information provided by owners and agents), State wage information

collection agencies, other Federal and State agencies, law enforcement

agencies, program participants, complainants, and other nongovernmental

sources.

This system of records is exempt from the requirements of:

subsections (c)(3), (d)(1), (d)(2) and (e)(1) of the Privacy Act

pursuant to 5 U.S.C. 552a(k)(2); and from the requirements of

subsection (d)(1) of the Privacy Act pursuant to 5 U.S.C. 552a(k)(5).

[FR Doc. 95-10684 Filed 5-1-95; 8:45 am]

BILLING CODE 4210-01-P