[Federal Register Volume 59, Number 193 (Thursday, October 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24626]


[[Page Unknown]]

[Federal Register: October 6, 1994]


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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.

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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