[Federal Register Volume 60, Number 84 (Tuesday, May 2, 1995)]
[Notices]
[Pages 21545-21548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10684]



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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