Privacy Act; Proposed Amendment to a System of Records

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. 4456-N-01]

Privacy Act; Proposed Amendment to a System of Records

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

ACTION: Notification of a proposed amendment to 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 60 FR 53633;

October 16, 1995. The amended notice cites two additional locations

where records are maintained: HUD's Income Verification Centers in

Chicago, Illinois and Seattle, Washington. HUD established the Income

Verifications Centers in calendar year 1998 to facilitate expanded use

of techniques to verify income of tenants who receive rental

assistance. In addition, the amended notice expands routine use 10 to

include evaluations of: (a) Legal and regulatory compliance with rental

assistance program requirements, (b) program policies, and (c) actions

taken by entities that administer HUD's rental assistance programs, to

resolve income discrepancies identified through computer matching. The

Authority for Maintenance of the System section of the system of

records notice cites provisions in HUD's 1998 Appropriation Act

eliminating sunset provisions in two statutes, and references the

Native American Housing Assistance and Self-Determination Act of 1996.

The system of records notice below supersedes the system of records

notice published at 60 FR 53633; October 16, 1995. The prior published

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

1974 continue to apply to HUD/PIH-1, as amended.

HUD/PIH-1 contains computer matching and tenant eligibility

verification records necessary to support the identification of tenants

who have been or may be obtaining excessive rental 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, Indian Tribes and Tribally Designated

Housing Entities participating in the Section 8 Program, owners of

subsidized multifamily projects, and management agents) and to law

enforcement agencies for possible administrative or legal actions, as

appropriate.

DATES: Effective Date: This proposal shall become effective without

further notice in 30 calendar days (March 11, 1999) unless comments are

received during or before this period which would result in a contrary

determination.

Comments Due By: March 11, 1999.

ADDRESSEES: 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. Regarding records maintained in Washington, DC; Chicago,

Illinois; and Seattle, Washington contact the following, respectively:

David L. Decker, Director, Computer Matching, Office of the Public and

Indian Housing, Telephone Number (202) 708-0099, Turhan Brown, Acting

Director, Chicago Income Verification Center, Telephone Number (312)

353-6236; and Gordon Brandhagen, Acting Director, Seattle Income

Verification Center, Telephone Number (206) 220-5312. (These are not

toll free numbers.) A telecommunications device for hearing-and speech-

impaired individuals (TTY) is available at 1-800-877-8339 (Federal

Information Relay Service).

SUPPLEMENTARY INFORMATION: A notice of the HUD/SSA/IRS computer

matching program concerning earned and unearned income, social security

and supplemental security income is published at 63 FR 68129; December

9, 1998.

A report of the Department'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; 342 U.S.C. 3535(d),

Dated: January 28, 1999.

Gloria R. Parker,

Chief Information Officer.

HUD/PIH-1

System Name:

Tenant Eligibility Verification Files.

System Locations:

The files will be maintained at the following locations: (1) U.S.

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

Washington,

[[Page 6372]]

DC 20410; (2) Chicago Income Verification Center, U.S. Department of

Housing & Urban Development, Ralph H. Metcalfe Federal Building, 77

West Jackson Boulevard, Chicago, Illinois 60604; (3) Seattle Income

Verification Center, U.S. Department of Housing & Urban Development,

Seattle Federal Building, 901 First Avenue, Seattle, Washington 98104.

* * * * *

Categories of Records in the System:

* * * * *

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

Tenants receiving rental 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, Indian Tribes and Tribally Designated

Housing Entities participating in the Section 8 Program, owners, and

management agents.

CATEGORIES OF RECORDS IN THE SYSTEM:

Records consist of: (1) Automated tenant data obtained from HUD/H-

11, Tenant Housing Assistance and Contract Verification Data, published

at 62 FR 11909; March 13, 1997, (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, Indian

Tribes and Tribally Designated Housing Entities participating in the

Section 8 Program, owners or management agents (generally these records

are available in HUD/H-11); (3) information obtained from computer

matching with automated earned income data that the Social Security

Administration (SSA) provides under 26 U.S.C. 6103(l)(7)(A) from the

Earnings Recording and Self-Employment Income System (HHS/SSA/OSR, 09-

60-0059) (Earnings Record) and Master Beneficiary Record (HHS/SSA/OSR,

09-60-0090; (4) information obtained from computer matching with

automated unearned income data that the Internal Revenue Service (IRS)

provides to HUD under 26 U.S.C. 6103(l)(7)(B) from Treasury/IRS 22.061,

Wage and Information Returns Processing (IRP) File Treasury/IRS; (5)

information obtained from computer matching with automated Title II

(social security) and Title XVI (supplemental security income) data

that the SSA provides to HUD under a routine use from the Supplemental

Security Income Record, HHS/SSA/OSR 90-60-0103; (6) information

obtained from computer matching with wage and unemployment compensation

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

obtained from computer matching with automated data from the Office of

Personnel Management's General Personnel Records (OPM/GOVT-1), and the

Civil Service Retirement and Insurance Records System (OPM/Central-1)

pursuant to a routine use; (8) information obtained from computer

matching with automated data from the Department of Defense's Defense

Manpower Data Center Data Base (S322.10.DMDC) pursuant to a routine

use; (9) information obtained from computer matching with automated

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

known as the Enumeration Verification System--(HHS/SSA/OSR, 09-60-0058)

pursuant to a routine use; (10) applications for rental assistance and

other related documentation obtained from tenant case files maintained

by housing agencies, Indian Tribes and Tribally Designated Housing

Entities participating in the Section 8 Program, owners, and management

agents; (11) data received from employers confirming income or

deductions supporting determinations of eligibility for, and the amount

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

other Federal agencies under the investigative exclusion of the

Computer Matching and Privacy Protection Act of 1988; and (13)

automated records provided by housing agencies, Indian Tribes and

Tribally Designated Housing Entities participating in the Section 8

Program, owners and management agents regarding actions taken on

computer matching results.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

Subparagraph (D) of section 6103(l)(7) of the Internal Revenue Code

26 U.S.C. 6103(l)(7)(D), permits 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 rental assistance. Section 6103(l)(7)(D)

precludes HUD from redisclosing that information to entities that

administer HUD programs (i.e. housing agencies, Indian Tribes and

Tribally Designated Housing Entities participating in the Section 8

Program, owners and management agents). Section 542(b) of HUD's 1998

Appropriations Act (Pub. L. 105-65; October 27, 1997) eliminated a

September 30, 1998 sunset provision to 26 U.S.C. 6103(l)(7)(D),

effectively making permanent the authority for SSA and IRS disclosures

of Federal tax return information to HUD.

The Stewart B. McKinney Homeless Assistance Amendments Act of 1988,

42 U.S.C. 3544, as amended, 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 or the IRS. The

McKinney Amendments of 1988 also authorized HUD to request, under

Section 303(i) of the Social Security Act, wage and claim information

from state agencies responsible for the administration of state

unemployment law. Section 542(a)(1) of HUD's 1998 Appropriation Act,

referenced above, eliminated an October 1, 1994 sunset provision to

Section 303(i) of the Social Security Act, effectively making permanent

the authority requiring state agencies to disclose wage and claim

information to HUD and public housing agencies.

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

Pub. L. 100-242; authorizes HUD to require applicants and participants

in HUD-administered programs involving rental assistance to disclose to

HUD their social security numbers as a condition of initial or

continuing eligibility for participation. Subpart T of 24 CFR part 200

applies this requirement to member of households six (6) years of age

and older.

Applicable laws concerning HUD's assisted housing programs include:

the United States Housing Act of 1937, 42 U.S.C. 1437 note; and section

101 of the Housing and Urban Development Act of 1965, 12 U.S.C. 1701s,

and the Native American Housing Assistance and Self-Determination Act

of 1996, 25 U.S.C. 4101, et seq.

PURPOSE(S):

The primary purposes of HUD/PIH-1 are to aid HUD and entities that

administer HUD's assisted housing programs in: (a) Increasing the

availability of rental assistance to individuals who meet the

requirements of Federal rental assistance programs, (b) detecting

abuses in assisted housing programs, (c) taking administrative or legal

actions to resolve past abuses of assisted housing programs and (d)

deterring abuses. HUD/PIH-1 serves as a repository for automated

information used in and resulting from computer matching tenant data

for recipients of Federal rental assistance to other data sources; HUD/

PIH also contains non-automated information used in and resulting from

verifying computer matching results and in accomplishing the purposes

previously cited. Records

[[Page 6373]]

in this system are subject to use in authorized and approved computer

matching programs regulated under the Privacy Act of 1974, as amended.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND PURPOSES OF SUCH USES:

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

computer matching with Federal and State agencies 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, Indian Tribes

and Tribally Designated Housing Entities participating in the Section 8

Program, owners and management agents in order to assist them in

determining tenants' eligibility for rental 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 housing agencies, Indian Tribes

and Tribally Designated Housing Entities participating in the Section 8

Program, owner or management agent are 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 rental 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 rental 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 to

Congress and the Office of Management and Budget for use in evaluating:

The effectiveness of computer matching and income verification

programs; program policies; and actions taken by entities that

administer HUD's rental assistance programs to resolve income

discrepancies identified through computer matching.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

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.

RETRIEVABILITY:

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

the name, social security number, housing agency, Indian Tribe and

Tribally Designated Housing Entity participating in the Section 8

Program, owner or management agent.

SAFEGUARDS:

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. 6103(l)(7)(A) and (B) in

accordance with 26 U.S.C. 6103(p)(4) and the IRS' ``Tax Information

Security Guidelines for Federal, State and Local Agencies,''

Publication 1075 (REV. 1-98).

RETENTION AND DISPOSAL:

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.

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, Indian Tribes and

Tribally Designated Housing Entities participating in the Section 8

Program, 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.

SYSTEM MANAGER(s) AND ADDRESS:

Director, Computer Matching, Office of the Public and Indian

Housing, U.S. Department of Housing and Urban Development, 451 Seventh

Street, SW, Room 5156, Washington, DC 20410.

NOTIFICATION AND RECORD ACCESS PROCEDURES:

Individuals seeking to determine whether this system of records

contains information about themselves, or seeking access to such

records, should address inquiries to the Director, Computer Matching,

Office of the Public

[[Page 6374]]

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

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

Written requests should contain the full name, Social Security

Number, date of birth, current address and telephone number of the

individual.

For personal visits, the individual must be able to provide some

acceptable identification, such as a driver's license or other

identification card.

CONTESTING RECORD PROCEDURES:

The procedures for amendment or correction of records, and for

appealing initial agency determinations, appear in 24 CFR part 16.

RECORD SOURCE CATEGORIES:

The Assistant Secretary for Public and Indian Housing and the

Assistant Secretary for Housing-Federal Housing Commissioner collect

information from a variety of sources, including: housing agencies,

Indian Tribes and Tribally Designated Housing Entities participating in

the Section 8 Program, owners and management agents, state wage

information collection agencies, other Federal and state agencies, law

enforcement agencies, program participants, complainants, and other

nongovernmental sources.

EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:

To the extent that information in this system of records falls

within the coverage of subsection (k)(2) of the Privacy Act, 5 U.S.C.

552(k)(2), the system is exempt from the requirements of subsections

(c)(3), (d)(1), (d)(2) and (e)(1) of the Privacy Act. To the extent

that information in this system of records falls within the coverage of

subsection (k)(5) of the Privacy Act, 5 U.S.C. 552a(k)(5), the system

is exempt from the requirements of subsection (d)(1) of the Privacy

Act. See 24 CFR 16.15 (c) and (d).

[FR Doc. 99-3080 Filed 2-8-99; 8:45 am]

BILLING CODE 4210-01-P