[Federal Register Volume 60, Number 41 (Thursday, March 2, 1995)]
[Rules and Regulations]
[Pages 11626-11629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5047]
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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-95-1747; FR-3730-F-03]
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: Final rule.
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SUMMARY: This 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 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 was
issued with respect to multifamily subsidized projects administered
under programs subject to the oversight of the Assistant Secretary for
Housing-Federal Housing Commissioner (58 FR 61017), which was codified
at 24 CFR part 208.
EFFECTIVE DATE: April 3, 1995.
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 Public
Housing program information--Edward C. Whipple, Director, Occupancy
Division, Office of Public and Indian Housing, Room 4206, telephone
(202) 708-0744. For Native American program information--Ed Fagan,
Office of Native American Programs, Room B-133, telephone (202) 755-
0088. These people may be reached at the 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 rule have
been reviewed by the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) and assigned
approval number 2577-0083, which expires on August 31, 1997.
II. Background
On Thursday, October 6, 1994, the Department published a proposed
rule that would require all housing agencies (HAs) to submit certain
data electronically to HUD in a HUD prescribed format.
Housing agencies have been submitting data forms to HUD for each
family assisted under the public housing, Indian housing, and Section 8
Rental Certificate, Rental Voucher and Moderate Rehabilitation
Programs. Approximately 85 percent of reporting agencies (3,655 HAs)
have been 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, HUD issued the proposed rule to require
that this information be submitted electronically. The change is
expected to contribute significant savings to the Department, in a time
when budget constraints demand such savings. The time spent by HAs in
initiating electronic collection and 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.
The proposed rule requires 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. For HAs that are
not already automated or who determine that automation is not cost
effective, the rule would permit transmission of the data through the
use of a service bureau.
In recognition of the difficulty some HAs may have in conversion to
electronic submission of data, the proposed rule permits HUD Field
Offices to grant extensions of time beyond the stated implementation
date for commencement of electronic submission under certain
circumstances.
This final rule adopts the proposed rule, as published, in its
entirety, with the addition of a reference to Indian housing programs
in Sec. 908.108(a).
III. Response to Public Comments
The Department received 16 comments on the proposed rule. The
commentors consisted of HAs and two professional housing associations.
Most respondents expressed general support for HUD's implementation of
the rule. The following are major concerns expressed by the commentors:
The most frequent category of concern was raised by small HAs (100
units or less in management), requesting that they be excluded from the
requirement [[Page 11627]] to submit family data electronically. They
stated that their size and limited staff and financial resources made
compliance burdensome, and they suggested two solutions. The first was
to discontinue the submission of data completely; the second was to
continue submission of paper reports as is currently the practice.
While the Department is aware of the unique constraints faced by
small HAs in reporting family data, they should be aware that they
constitute a sizeable portion of the HA universe and have valuable
resident family information that should be shared. HUD's position in
this matter is that small HAs unable to automate their reporting
systems should seek out, and contract with, organizations that provide
data processing services (Service Bureaus). Service costs should be
manageable, since small HAs are only required to report on a quarterly
basis. A service bureau need not be physically located in the city
where the housing agency is located, since paper records may be mailed
to a service bureau, which may then transmit the records electronically
to HUD.
Several HAs suggested that if HUD provides the software for
automating family data reporting, the requirement would be reasonable.
Along these lines, other HAs and a housing organization indicated a
willingness to send data electronically only if HUD provides equipment
and software or pays for contracting with service bureaus.
The Department is aware that there are vendors available that can
assist HAs in automating the collection and reporting of family data.
These vendors also can help HAs to achieve this automation in the
context of HA automation of other functions. The Department strongly
encourages HAs to investigate these options. HUD also is considering
development of a software package that is directed primarily for the
smaller HAs. This package would automate only the collection and
reporting of family data, not the other HA functions. This software
package would be provided free of charge. The Department will notify
HAs by letter if this software package becomes available.
The cost of automation hardware is an eligible operating expense
and can be included in the operating budget. Automating this management
function also is an allowable expense under the Comprehensive
Improvement Assistance Program and the Comprehensive Grant Program.
Another organization suggested that the Section 8 Program
Administrative Fee be increased to cover the cost of automation. In the
Section 8 Program, automation may be paid from ongoing Administrative
Fees or the Operating Reserve. The Department, however, has no plans to
increase Administrative Fees for the sole purpose of automation.
Several HAs recommended that HUD provide training and technical
assistance in the formatting and transmission of family data to the
Department's central processing facility. Plans are underway to develop
a video tape and expanded training materials specifically for this
purpose.
One organization recommended that this automation effort be more
closely coordinated with the HUD automated database program TRACS--the
data collection system used for programs administered by the Assistant
Secretary for Housing--Federal Housing Commissioner. Unfortunately, the
electronic data formats for the Forms HUD-50058 and HUD-50058-FSS,
which are used for the programs that are covered by this rule, and for
the Form HUD-50059, which are the subject of TRACS, are unique and will
not accommodate a one-for-one correspondence. While similar automation
hardware may be used to process a variety of management information
reports, software specifically designed for the above forms is
required.
A number of HAs recommended that the time periods required for the
implementation of the rule be extended in the following manner:
Automated agencies (converting to telephonic electronic
transmission) from 120 days after publication of the final rule to 12
months.
Non-automated agencies (planning to automate) from 365 days after
publication of the final rule to 24 months.
While HUD understands the obstacles and concerns facing agencies in
this automation effort, the intent of the rule is to decrease the
reporting burden for HAs while at the same time, reduce costs to the
Department in a time when budget constraints demand such savings. HUD
is of the opinion that the time frames originally set in the rule are
realistic. Special situations may be directed to the HUD Field Office
for consideration.
One HA located in a remote area of Alaska requested approval of
transmission via tape or diskette, since telephonic service was
undependable. In these instances HAs may utilize a Service Bureau or,
upon prior approval from HUD, transmit via tape or diskette.
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 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 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 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 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 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.
D. 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 this 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 rule is not expected to have a
significant economic impact.
[[Page 11628]]
E. Regulatory Agenda
This rule was not listed in the Department's Semiannual Agenda of
Regulations published on November 14, 1994 (59 FR 57632) under
Executive Order 12866 and the Regulatory Flexibility Act.
F. Catalog
The Catalog of Federal Domestic Assistance numbers for the programs
covered by this rule are 14.850, 14.855, 14.856, and 14.857.
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, Indians, Homeownership,
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 are amended by amending parts 813, 905, and 913, and by
adding a new part 908, consisting of Secs. 908.101 through 908.112, 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 continues 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) is 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 continues 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 (3) are redesignated as
paragraphs (b) and (c), and a new paragraph (d) is 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, is
added 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 June 30, 1995.
(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 March 2, 1996.
(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.
[Approved by the Office of Management and Budget under control
number 2577-0083]
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 [[Page 11629]] centralizing the
electronic transmission function, shall be considered Section 8
Administrative expenses, or eligible public and Indian housing
operating expenses that can be included in the public and Indian
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 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437d, 1437n, and 3535(d).
7. In Sec. 913.109, a new paragraph (c) is 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: February 21, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-5047 Filed 3-1-95; 8:45 am]
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