[Federal Register Volume 59, Number 39 (Monday, February 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4482]


[Federal Register: February 28, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Secretary

24 CFR Part 16

[Docket No. R-94-1669; FR-3436-F-02]
RIN 2501-AB60


Exemption of System of Records Under Privacy Act of 1974

AGENCY: Office of the Secretary, HUD.

ACTION: Final rule.

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SUMMARY: This final rule exempts a new system of records entitled 
``Tenant Eligibility Verification Files'' from compliance with the 
applicable provisions of the Privacy Act. This additional exemption is 
necessary because on July 12, 1993, the Department created a new system 
of records entitled ``HUD/PIH-1. Tenant Eligibility Verification 
Files'' to add to the Privacy Act system of records.

EFFECTIVE DATE: March 30, 1994.

FOR FURTHER INFORMATION CONTACT: David L. Decker, Director, Computer 
Matching Activities Division, Office of the Public and Indian Housing 
Comptroller, Room 4122, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410, telephone (202) 708-
0099. Hearing or speech-impaired individuals may call HUD's TDD number 
(202) 708-0850. (These telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Background

    Except for the Office of Inspector General, the Department's 
implementation of the Privacy Act (5 U.S.C. 552a) is set forth in 24 
CFR part 16. (The implementation of the Privacy Act for the Office of 
Inspector General appears in 24 CFR part 2003). The implementation of 
the Privacy Act includes the publication of a system of records which 
are exempt from certain requirements of the Privacy Act, as determined 
by the Secretary under the specific exemption authority of the Act, 5 
U.S.C. 552a(k). The specific exemption provision of the Privacy Act 
authorizes exemption for systems of records from many of the notice and 
access requirements of the Privacy Act, but does not affect the 
applicability of the remaining Privacy Act requirements. The 
Department's specific exemptions appear at 24 CFR 16.15.
    The establishment of a new system of records on July 12, 1993 (58 
FR 37600), entitled ``HUD/PIH-1. Tenant Eligibility Verification 
Files,'' and this rule are necessary as a result of the recent transfer 
of computer matching/tenant eligibility verification functions from the 
Office of Inspector General to the Assistant Secretary for Public and 
Indian Housing. (The transfer affects only housing assistance programs 
administered by the Assistant Secretary for Public and Indian Housing.)
    The tenant records and other records referenced in the new ``Tenant 
Eligibility Verification Files'' system of records notice were 
previously included in the ``Investigative Files of the Office of the 
Inspector General'' (HUD/OIG-1, see 57 FR 25070). The Assistant 
Secretary for Public and Indian Housing will be adding records to the 
final new system based on computer matching results and verification of 
those results with tenant case files and records supplied by Federal 
agencies and private employers.
    This final rule also makes changes to Sec. 16.15 to clarify the 
scope of the exemptions applicable to the Assistant Secretary for 
Public and Indian Housing's system of records entitled ``Tenant 
Eligibility Verification Files,'' and provides reasons for the 
exemptions from particular subsections of the Privacy Act that are more 
detailed than those currently found at 24 CFR 16.15.

II. Discussion of Public Comments From Proposed Rule

    On July 12, 1993 (58 FR 37598), the Department published a proposed 
rule which would exempt the new system of records entitled ``Tenant 
Eligibility Verification Files'' from compliance with applicable 
provisions of the Privacy Act. The Department received one public 
comment from a public housing agency in response to this proposed rule. 
The commenter stressed the need to protect a tenant's privacy, and 
urged strenuous penalties to prevent misuse of the new system of 
records. The Department agrees that it is extremely important to 
prevent the misuse of confidential material concerning a tenant. 
However, the Department does not believe any changes to the final rule 
are necessary because both the Privacy Act and the Computer Matching 
and Privacy Protection Act of 1988 provide sufficient safeguards to 
protect against the unlawful disclosure of material concerning a tenant 
from this Privacy Act system of records.

III. 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(k) of the HUD regulations, 
the policies and procedures in this document are determined not to have 
the potential of having a significant impact on the quality of the 
human environment, and, therefore, are categorically excluded from the 
requirements of the National Environmental Policy Act of 1969. 
Accordingly, a Finding of No Significant Impact is not required.

B. Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)), has reviewed and approved this rule, and in so doing 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities because the rule only affects 
the way the Department implements the Privacy Act.

C. Executive Order 12612, Federalism

    The General Counsel, as the Designated Official under section 6(a) 
of Executive Order 12612, Federalism, has determined that the policies 
contained in this 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. As a result, 
the rule is not subject to review under the order. Specifically, the 
requirements of this rule are directed to the Department of Housing and 
Urban Development, and do not impinge upon the relationship between the 
Federal Government and State and local governments.

D. Executive Order 12606, The Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this final 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 rule, as those policies and programs 
relate to family concerns.

E. Regulatory Agenda

    This final rule was listed as item no. 1444 in the Department's 
Semiannual Agenda of Regulations published on October 25, 1993 (58 FR 
56402, 56410) in accordance with Executive Order 12291 and the 
Regulatory Flexibility Act.

List of Subjects in 24 CFR Part 16

    Privacy.

    Accordingly, 24 CFR part 16 is amended to read as follows:

PART 16--IMPLEMENTATION OF THE PRIVACY ACT OF 1974

    1. The authority citation for part 16 is revised to read as 
follows:

    Authority: 5 U.S.C. 552(a); 42 U.S.C. 3535(d).

    2. Section 16.15 is amended by adding new paragraphs (c) and (d) as 
follows:


Sec. 16.15  Specific exemptions.

* * * * *
    (c) The system of records entitled ``HUD/PIH-1. Tenant Eligibility 
Verification Files'' consists in part of investigatory material 
compiled for law enforcement purposes. Relevant records will be used by 
appropriate Federal, state or local agencies charged with the 
responsibility for investigating or prosecuting violations of law. 
Therefore, to the extent that information in the system falls within 
the coverage of subsection (k)(2) of the Privacy Act, 5 U.S.C. 
552a(k)(2), the system is exempt from the requirements of the following 
subsections of the Privacy Act, for the reasons stated below.
    (1) From subsection (c)(3) because release of an accounting of 
disclosures to an individual who may be the subject of an investigation 
could reveal the nature and scope of the investigation and could result 
in the altering or destruction of evidence, improper influencing of 
witnesses, and other evasive actions that could impede or compromise 
the investigation.
    (2) From subsection (d)(1) because release of the records to an 
individual who may become or has become the subject of an investigation 
could interfere with pending or prospective law enforcement 
proceedings, constitute an unwarranted invasion of the personal privacy 
of third parties, reveal the identity of confidential sources, or 
reveal sensitive investigative techniques and procedures.
    (3) From subsection (d)(2) because amendment or correction of the 
records could interfere with pending or prospective law enforcement 
proceedings, or could impose an impossible administrative and 
investigative burden by requiring the office that maintains the records 
to continuously retrograde its verifications of tenant eligibility 
attempting to resolve questions of accuracy, relevance, timeliness and 
completeness.
    (4) From subsection (e)(1) because it is often impossible to 
determine relevance or necessity of information in pre-investigative 
early stages. The value of such information is a question of judgment 
and timing; what appears relevant and necessary when collected may 
ultimately be evaluated and viewed as irrelevant and unnecessary to an 
investigation. In addition, the Assistant Secretary for Public and 
Indian Housing, or investigators, may obtain information concerning the 
violation of laws other than those within the scope of its 
jurisdiction. In the interest of effective law enforcement, the 
Assistant Secretary for Public and Indian Housing, or investigators, 
should retain this information because it may aid in establishing 
patterns of unlawful activity and provide leads for other law 
enforcement agencies. Further, in obtaining the evidence, information 
may be provided which relates to matters incidental to the main purpose 
of the inquiry or investigation but which may be pertinent to the 
investigative jurisdiction of another agency. Such information cannot 
readily be identified.
    (d) The system of records entitled ``HUD/PIH-1. Tenant Eligibility 
Verification Files'' consists in part of material that may be used for 
the purpose of determining suitability, eligibility, or qualifications 
for Federal civilian employment or Federal contracts, the release of 
which would reveal the identity of a source who furnished information 
to the Government under an express promise that the identity of the 
source would be held in confidence. Therefore, to the extent that 
information in this system 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 the following subsection of the Privacy Act, 
for the reasons stated below.
    (1) From subsection (d)(1) because release would reveal the 
identity of a source who furnished information to the Government under 
an express promise of confidentiality. Revealing the identity of a 
confidential source could impede future cooperation by sources, and 
could result in harassment or harm to such sources.

    Dated: February 15, 1994.
Henry G. Cisneros,
Secretary.
[FR Doc. 94-4482 Filed 2-25-94; 8:45 am]
BILLING CODE 4210-32-P