[Federal Register Volume 61, Number 53 (Monday, March 18, 1996)]
[Rules and Regulations]
[Pages 11112-11119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6215]
[[Page 11111]]
_______________________________________________________________________
Part V
Department of Housing and Urban Development
_______________________________________________________________________
24 CFR Part 5, et al.
Disclosure and Verification of Social Security Numbers and Employer
Identification Numbers, and Procedures for Obtaining Income
Information; Final Rule
Federal Register / Vol. 61, No. 53 / Monday, March 18, 1996 / Rules
and Regulations
[[Page 11112]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Office of the Secretary
24 CFR Parts 5, 200, 247, 572, 750, 760, 882, 886, 887, 913, 950,
960, 982, and 983
[Docket No. FR-3992-F-01]
RIN 2501-AC13
Disclosure and Verification of Social Security Numbers and
Employer Identification Numbers, and Procedures for Obtaining Income
Information; Streamlining Final Rule
AGENCY: Office of the Secretary, HUD.
ACTION: Final rule.
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SUMMARY: This final rule amends HUD's regulations for the disclosure
and verification of social security numbers and employer identification
numbers, and procedures for obtaining income information. In an effort
to comply with the President's regulatory reform initiatives, this rule
will streamline these regulations as they exist in several parts by
eliminating provisions that are redundant and are otherwise
unnecessary. In addition, this final rule consolidates these
regulations into 24 CFR part 5 and updates the rule with new statutory
references.
EFFECTIVE DATE: April 17, 1996.
FOR FURTHER INFORMATION CONTACT: Camille Acevedo, Assistant General
Counsel for Regulations, Room 10276, Department of Housing and Urban
Development, 451 Seventh Street, SW, Washington, DC 20410, telephone
number (202) 708-2084 (this is not a toll-free number). For hearing- or
speech-impaired persons, this number may be accessed via TDD by calling
the Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION: On March 4, 1995, President Clinton issued a
memorandum to all Federal departments and agencies regarding regulatory
reinvention. In response to this memorandum, HUD conducted a page-by-
page review of its regulations to determine which can be eliminated,
consolidated, or otherwise improved. HUD has determined that the
regulations for the disclosure and verification of social security
numbers and employer identification numbers and the procedures for
obtaining income information can be improved and streamlined by
eliminating unnecessary provisions.
Several provisions in the regulations apply to more than one
program, and therefore HUD repeated these provisions in different
subparts. This repetition is unnecessary, and updating these scattered
provisions is cumbersome and often creates confusion. Therefore, this
final rule will consolidate these duplicative provisions, maintaining
appropriate cross-references for the reader's convenience. In
accomplishing this consolidation, this final rule also updates cross-
references to applicable program regulations, some of which have
changed as a result of other rules that have reinvented HUD's
regulations.
Several provisions also repeated statutory language from section
165 of the Housing and Community Development Act of 1987 (42 U.S.C.
3543) and section 904 of the Stewart B, McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544). It is unnecessary to maintain
statutory requirements in the Code of Federal Regulations (CFR), since
those requirements are otherwise fully accessible and binding.
Furthermore, if regulations contain statutory language, HUD must amend
the regulations whenever Congress amends the statute. Therefore, this
final rule will remove repetitious statutory language and replace it
with a citation to the specific statutory section for easy reference.
Finally, this rule includes updated references to income
information obtained pursuant to statutory authority through computer
matches with other Federal agencies. These references merely reflect
existing authority and responsibilities that were not otherwise
acknowledged in the regulations.
Justification for Final Rulemaking
HUD generally publishes a rule for public comment before issuing a
rule for effect, in accordance with its own regulations on rulemaking
in 24 CFR part 10. However, part 10 provides for exceptions to the
general rule if the agency finds good cause to omit advance notice and
public participation. The good cause requirement is satisfied when
prior public procedure is ``impracticable, unnecessary, or contrary to
the public interest'' (24 CFR 10.1). HUD finds that good cause exists
to publish this rule for effect without first soliciting public
comment. This rule merely removes unnecessary regulatory provisions and
reflects existing authority and responsibilities; the rule does not
establish or affect substantive policy. Therefore, prior public comment
is unnecessary.
Other Matters
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 605(b)), has reviewed and approved this final rule, and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. This rule merely
streamlines regulations by removing unnecessary provisions. The rule
will have no adverse or disproportionate economic impact on small
businesses.
Environmental Impact
This rulemaking does not have an environmental impact. This
rulemaking simply amends existing regulations by consolidating and
streamlining provisions and does not alter the environmental effect of
the regulations being amended. Findings of No Significant Impact with
respect to the environment were made in accordance with HUD regulations
in 24 CFR part 50 that implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332) at the time of
development of regulations implementing the statutory requirements (see
Docket Nos. FR-2501; FR-2588; FR-2854; and FR-2974). Those findings
remain applicable to this rule, and are available for public inspection
between 7:30 a.m. and 5:30 p.m. weekdays in the Office of the Rules
Docket Clerk, Office of General Counsel, Room 10276, Department of
Housing and Urban Development, 451 Seventh Street, SW, Washington, DC.
Executive Order 12612, Federalism
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that 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. No programmatic or policy changes
will result from this rule that would affect the relationship between
the Federal Government and State and local governments.
Executive Order 12606, The Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this rule will not have
the potential for significant impact on family formation, maintenance,
or 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.
[[Page 11113]]
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Drug abuse,
Drug traffic control, Grant programs--housing and community
development, Grant programs--Indians, Grant programs--low and moderate
income housing, Indians, Individuals with disabilities,
Intergovernmental relations, Loan programs--housing and community
development, Low and moderate income housing, Mortgage insurance,
Penalties, Pets, Public housing, Rent subsidies, Reporting and
recordkeeping requirements, Social security, Unemployment compensation,
Wages.
24 CFR Part 200
Administrative practice and procedure, Claims, Equal employment
opportunity, Fair housing, Home improvement, Housing standards,
Incorporation by reference, Lead poisoning, Loan programs--housing and
community development, Minimum property standards, Mortgage insurance,
Organization and functions (Government agencies), Penalties, Reporting
and recordkeeping requirements, Social security, Unemployment
compensation, Wages.
24 CFR Part 247
Grant programs--housing and community development, Loan programs--
housing and community development, Low and moderate income housing,
Rent subsidies.
24 CFR Part 572
Condominiums, Cooperatives, Fair housing, Government property,
Grant programs--housing and community development, Low and moderate
income housing, Nonprofit organizations, Reporting and recordkeeping
requirements.
24 CFR Part 750
Grant programs--housing and community development, Indians,
Intergovernmental relations, Loan programs--housing and community
development, Public housing, Rent subsidies, Reporting and
recordkeeping requirements, Social security.
24 CFR Part 760
Grant programs--housing and community development, Income
verification procedures, Indians, Intergovernmental relations, Loan
programs--housing and community development, Penalties, Public housing,
Rent subsidies, Reporting and recordkeeping requirements, Wages.
24 CFR Part 882
Grant programs--housing and community development, Homeless, Lead
poisoning, Manufactured homes, Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 886
Grant programs--housing and community development, Lead poisoning,
Rent subsidies, Reporting and recordkeeping requirements.
24 CFR Part 887
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
24 CFR Part 913
Grant programs--housing and community development, Public housing,
Reporting and recordkeeping requirements.
24 CFR Part 950
Aged, Grant programs--housing and community development, Grant
programs--Indians, Indians, Individuals with disabilities, Low and
moderate income housing, Public housing, Reporting and recordkeeping
requirements.
24 CFR Part 960
Aged, Grant programs--housing and community development,
Individuals with disabilities, Public housing.
24 CFR Part 982
Grant programs--housing and community development, Housing, Rent
subsidies, Reporting and recordkeeping requirements.
24 CFR Part 983
Grant programs--housing and community development, Rent subsidies,
Reporting and recordkeeping requirements.
For the reasons set out in the preamble, under the authority of 42
U.S.C. 3535(d), title 24 of the Code of Federal Regulations is amended
by amending parts 5, 200, 247, 572, 882, 886, 887, 913, 950, 960, 982,
and 983, and by removing parts 750 and 760, as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
1. The authority citation for part 5 is revised to read as follows:
Authority: 12 U.S.C. 101r-1; 42 U.S.C. 3535(d), 3543, 3544, and
11901 et seq.
2. A new subpart B is added to read as follows:
Subpart B--Disclosure and Verification of Social Security Numbers and
Employer Identification Numbers; Procedures for Obtaining Income
Information
Sec.
5.210 Purpose, applicability, and Federal preemption.
5.212 Compliance with the Privacy Act and other requirements.
5.214 Definitions.
Disclosure and Verification of Social Security Numbers and Employer
Identification Numbers for Applicants and Participants in Certain HUD
Programs
5.216 Disclosure and verification of Social Security and Employer
Identification Numbers.
5.218 Penalties for failing to disclose and verify Social Security
and Employer Identification Numbers.
Procedures for Obtaining Income Information About Applicants and
Participants
5.230 Consent by assistance applicants and participants.
5.232 Penalties for failing to sign consent forms.
5.234 Requests for information from SWICAs and Federal agencies;
restrictions on use.
5.236 Procedures for termination, denial, suspension, or reduction
of assistance based on information obtained from a SWICA or Federal
agency.
5.238 Criminal and civil penalties.
Subpart B--Disclosure and Verification of Social Security Numbers
and Employer Identification Numbers; Procedures for Obtaining
Income Information
Sec. 5.210 Purpose, applicability, and Federal preemption.
(a) Purpose. This subpart B requires applicants for and
participants in covered HUD programs to disclose, and submit
documentation to verify, their Social Security Numbers (SSNs). This
subpart B also enables HUD and HAs to obtain income information about
applicants and participants in the covered programs through computer
matches with State Wage Information Collection Agencies (SWICAs) and
Federal agencies, in order to verify an applicant's or participant's
eligibility for or level of assistance. The purpose of this subpart B
is to enable HUD to decrease the incidence of fraud, waste, and abuse
in the covered programs.
(b) Applicability. (1) This subpart B applies to mortgage and loan
insurance and coinsurance and housing assistance programs contained in
chapter II, subchapter B, and chapters VIII and IX of this title.
(2) The information covered by consent forms described in this
subpart involves income information from SWICAs, and wages, net
earnings from
[[Page 11114]]
self-employment, payments of retirement income, and unearned income as
referenced at 26 U.S.C. 6103. In addition, consent forms may authorize
the collection of other information from applicants and participants to
determine eligibility or level of benefits, as provided in parts 813
and 913 of this title.
(c) Federal preemption. This subpart B preempts any State law,
including restrictions and penalties, that governs the collection and
use of income information to the extent State law is inconsistent with
this subpart.
Sec. 5.212 Compliance with the Privacy Act and other requirements.
(a) Compliance with the Privacy Act. The collection, maintenance,
use, and dissemination of SSNs, EINs, any information derived from SSNs
and Employer Identification Numbers (EINs), and income information
under this subpart shall be conducted, to the extent applicable, in
compliance with the Privacy Act (5 U.S.C. 552a) and all other
provisions of Federal, State, and local law.
(b) Privacy Act notice. All assistance applicants shall be provided
with a Privacy Act notice at the time of application. All participants
shall be provided with a Privacy Act notice at each annual income
recertification.
Sec. 5.214 Definitions.
In addition to the definitions in Sec. 5.100, the following
definitions apply to this subpart B:
Assistance applicant. Except as excluded pursuant to 42 U.S.C.
3543(b) and 3544(a)(2), this term means the following:
(1) For any program under 24 CFR parts 215, 221, 236, 290, 880,
882, 886, 887, 891: A family or individual that seeks rental assistance
under the program.
(2) For any program under 24 CFR parts 904, 950, and 960: A
prospective tenant or homebuyer seeking the benefit of the program.
(3) For any program under 24 CFR part 235: A homeowner or
cooperative member seeking homeownership assistance (including where
the individual seeks to assume an existing mortgage).
Computer match means the automated comparison of data bases
containing records about individuals.
Computer matching agreement means the agreement that describes the
responsibilities and obligations of the parties participating in a
computer match.
Consent form means any consent form approved by HUD to be signed by
assistance applicants and participants for the purpose of obtaining
income information from employers and SWICAs; return information from
the Social Security Administration (including wages, net earnings from
self-employment, and payments of retirement income), as referenced at
26 U.S.C. 6103(l)(7)(A); and return information for unearned income
from the Internal Revenue Service, as referenced at 26 U.S.C.
6103(l)(7)(B). The consent forms expire after a certain time and may
authorize the collection of other information from assistance
applicants or participants to determine eligibility or level of
benefits as provided in Secs. 813.109, 913.109, and 950.315 of this
title.
Employer Identification Number (EIN) means the nine-digit taxpayer
identifying number that is assigned to an individual, trust, estate,
partnership, association, company, or corporation pursuant to sections
6011(b), or corresponding provisions of prior law, or 6109 of the
Internal Revenue Code.
Entity applicant. (1) Except as excluded pursuant to 42 U.S.C.
3543(b), 3544(a)(2), and paragraph (2) of this definition, this term
means a partnership, corporation, or any other association or entity,
other than an individual owner applicant, that seeks to participate as
a private owner in any of the following:
(i) The project-based assistance programs in 24 CFR parts 880, 882,
886, or 891;
(ii) The programs in 24 CFR parts 215, 221, or 236; or
(iii) The other mortgage and loan insurance programs in 24 CFR
parts 201 through 267, except that the term ``entity applicant'' does
not include a mortgagee or lender.
(2) The term does not include a public entity, such as a PHA, IHA,
or State Housing Finance Agency.
Federal agency means a department of the executive branch of the
Federal Government.
HA is the collective term for PHAs and IHAs.
Income information means information relating to an individual's
income, including:
(1) All employment income information known to current or previous
employers or other income sources that HUD or the processing entity
determines is necessary for purposes of determining an assistance
applicant's or participant's eligibility for, or level of assistance
in, a covered program;
(2) All information about wages, as defined in the State's
unemployment compensation law, including any Social Security Number;
name of the employee; quarterly wages of the employee; and the name,
full address, telephone number, and, when known, Employer
Identification Number of an employer reporting wages under a State
unemployment compensation law;
(3) With respect to unemployment compensation:
(i) Whether an individual is receiving, has received, or has
applied for unemployment compensation;
(ii) The amount of unemployment compensation the individual is
receiving or is entitled to receive; and
(iii) The period with respect to which the individual actually
received such compensation;
(4) Unearned IRS income and self-employment, wages and retirement
income as described in the Internal Revenue Code, 26 U.S.C. 6103(l)(7);
and
(5) Wage, social security (Title II), and supplemental security
income (Title XVI) data obtaied from the Social Security
Administration.
Individual owner applicant. Except as excluded pursuant to 42
U.S.C. 3543(b), 3544(a)(2), or paragraph (2) of this definition, this
term means:
(1) An individual who seeks to participate as a private owner in
any of:
(i) The project-based assistance programs in 24 CFR parts 880, 882,
886, 887, or 891; or
(ii) The programs in 24 CFR parts 215, 221, 235 (without
homeownership assistance), or 236, including where the individual seeks
to assume an existing mortgage; or
(2) An individual who:
(i) Either: (A) Applies for a mortgage or loan insured or coinsured
under any of the programs referred to in paragraph (1)(iii) of the
definition of ``entity applicant'' in this section; or
(B) Seeks to assume an existing mortgage or loan; and
(ii) Intends to hold the mortgaged property in his or her
individual right.
IRS means the Internal Revenue Service.
Owner means the person or entity (or employee of an owner) that
leases an assisted dwelling unit to an eligible family and includes,
when applicable, a mortgagee.
Participant. Except as excluded pursuant to 42 U.S.C. 3543(b) and
3544(a)(2), this term has the following meaning:
(1) For 24 CFR parts 880, 882, 886, 887, and 891: A family
receiving rental assistance under the program;
(2) For 24 CFR parts 904, 950, 960: A tenant or homebuyer under the
program;
(3) For 24 CFR parts 215, 221, 236, and 290: A tenant or qualified
tenant under any of the programs; and
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(4) For 24 CFR part 235: A homeowner or a cooperative member
receiving homeownership assistance.
Processing entity means the person or entity that, under any of the
programs covered under this subpart B, is responsible for making
eligibility and related determinations and any income reexamination.
Social Security Number (SSN) means the nine-digit number that is
assigned to a person by the Social Security Administration and that
identifies the record of the person's earnings reported to the Social
Security Administration. The term does not include a number with a
letter as a suffix that is used to identify an auxiliary beneficiary.
SSA means the Social Security Administration.
State Wage Information Collection Agency (SWICA) means the State
agency, including any Indian tribal agency, receiving quarterly wage
reports from employers in the State, or an alternative system that has
been determined by the Secretary of Labor to be as effective and timely
in providing employment-related income and eligibility information.
Disclosure and Verification of Social Security Numbers and Employer
Identification Numbers for Applicants and Participants in Certain HUD
Programs
Sec. 5.216 Disclosure and verification of Social Security and Employer
Identification Numbers.
(a) Disclosure: assistance applicants. Each assistance applicant
must submit the following information to the processing entity when the
assistant applicant's eligibility under the program involved is being
determined:
(1)(i) The complete and accurate SSN assigned to the assistant
applicant and to each member of the assistant applicant's household who
is at least six years of age; and
(ii) The documentation referred to in paragraph (f)(1) of this
section to verify each such SSN; or
(2) If the assistance applicant or any member of the assistance
applicant's household who is at least six years of age has not been
assigned an SSN, a certification executed by the individual involved
that meets the requirements of paragraph (j) of this section.
(b) Disclosure: individual owner applicants. Each individual owner
applicant must submit the following information to the processing
entity when the individual owner applicant's eligibility under the
program involved is being determined:
(1)(i) The complete and accurate SSNs assigned to the individual
owner applicant and to each member of the individual owner applicant's
household who will be obligated to pay the debt evidenced by the
mortgage or loan documents; and
(ii) The documentation referred to in paragraph (f)(1) of this
section to verify the SSNs; or
(2) If any person referred to in paragraph (b)(1)(i) of this
section has not been assigned an SSN, a certification executed by the
individual involved that meets the requirements of paragraph (j) of
this section.
(c) Disclosure: certain officials of entity applicants. As
explained more fully in HUD administrative instructions, each officer,
director, principal stockholder, or other official of an entity
applicant must submit the following information to the processing
entity when the entity applicant's eligibility under the program
involved is being determined:
(1) The complete and accurate SSN assigned to each such individual;
and
(2) The documentation referred to in paragraph (f)(1) of this
section to verify each SSN.
(d) Disclosure: participants. (1) Initial disclosure. Each
participant whose initial determination of eligibility under the
program involved was begun before November 6, 1989, must submit the
following information to the processing entity at the next regularly
scheduled income reexamination for the program involved:
(i)(A) The complete and accurate SSN assigned to the participant
and to each member of the participant's family who is at least six
years of age; and
(B) The documentation referred to in paragraph (f)(1) of this
section to verify each such SSN; or
(ii) If the participant or any member of the participant's
household who is at least six years of age has not been assigned an
SSN, a certification executed by the individual(s) involved that meets
the requirements of paragraph (j) of this section.
(2) Subsequent disclosure. Once a participant has disclosed and
verified every SSN, or submitted any certification that an SSN has not
been assigned, as provided by paragraph (a) of this section (for an
assistance applicant) or paragraph (d)(1) (for a preexisting
participant) of this section, the following rules apply:
(i) If the participant's household adds a new member who is at
least six years of age, the participant must submit to the processing
entity, at the next interim or regularly scheduled income reexamination
that includes the new members:
(A) The complete and accurate SSNs assigned to each new member and
the documentation referred to in paragraph (f)(1) of this section to
verify the SSNs for each new member; or
(B) If the new member has not been assigned an SSN, a certification
executed by the individual involved that meets the requirements of
paragraph (j) of this section.
(ii) If the participant or any member of the participant's
household who is at least six years of age obtains a previously
undisclosed SSN, or has been assigned a new SSN, the participant must
submit the following to the processing entity at the next regularly
scheduled income reexamination:
(A) The complete and accurate SSN assigned to the participant or
household member involved; and
(B) The documentation referred to in paragraph (f)(1) of this
section to verify the SSN of each such individual.
(iii) Additional SSN disclosure and verification requirements,
including the nature of the disclosure and the verification required
and the time and manner for making the disclosure and verification, may
be specified in administrative instructions by:
(A) HUD; and
(B) In the case of the public housing program or the programs under
parts 882 and 887 of this title, the HA.
(e) Disclosure: entity applicants. Each entity applicant must
submit the following information to the processing entity when the
entity applicant's eligibility under the program involved is being
determined:
(1) Any complete and accurate EIN assigned to the entity applicant;
and
(2) The documentation referred to in paragraph (f)(2) of this
section to verify the EIN.
(f) Required documentation. (1) Social Security Numbers. The
documentation necessary to verify the SSN of an individual who is
required to disclose his or her SSN under paragraphs (a) through (d) of
this section is a valid SSN card issued by the SSA, or such other
evidence of the SSN as HUD and, where applicable, the HA may prescribe
in administrative instructions.
(2) Employer Identification Numbers. The documentation necessary to
verify any EIN of an entity applicant that is required to disclose its
EIN under paragraph (e) of this section is the official, written
communication from the IRS assigning the EIN to the entity applicant,
or such other evidence of the EIN as HUD may prescribe in
administrative instructions.
(g) Special documentation rules for assistance applicants and
participants.
[[Page 11116]]
(1) Certification of inability to meet documentation requirements. If
an individual who is required to disclose his or her SSN under
paragraph (a) (assistance applicants) of this section or paragraph (d)
(participants) of this section is able to disclose the SSN, but cannot
meet the documentation requirements of paragraph (f)(1) of this
section, the assistance applicant or participant must submit to the
processing entity the individual's SSN and a certification executed by
the individual that the SSN submitted has been assigned to the
individual, but that acceptable documentation to verify the SSN cannot
be provided.
(2) Acceptance or certification by processing entity. Except as
provided by paragraph (h) of this section, the processing entity must
accept the certification referred to in paragraph (g)(1) of this
section and continue to process the assistant applicant's or
participant's eligibility to participate in the program involved.
(3) Effect on assistance applicants. If the processing entity
determines that the assistance applicant is otherwise eligible to
participate in the program, the assistance applicant may not become a
participant in the program, unless it submits to the processing entity
the documentation required under paragraph (f)(1) of this section
within the time period specified in paragraph (g)(5) of this section.
During such period, the assistance applicant will retain the position
that it occupied in the program at the time the determination of
eligibility was made, including its place on any waiting list
maintained for the program, if applicable.
(4) Effect on participants. If the processing entity determines
that the participant otherwise continues to be eligible to participate
in the program, participation will continue, provided that the
participant submits to the processing entity the documentation required
under paragraph (f)(1) of this section within the time period specified
in paragraph (g)(5) of this section.
(5) Time for submitting documentation. The time period referred to
in paragraphs (g)(4) and (5) of this section is 60 calendar days from
the date on which the certification referred to in paragraph (g)(1) of
this section is executed, except that the processing entity may, in its
discretion, extend this period for up to an additional 60 days if the
individual is at least 62 years of age and is unable to submit the
required documentation within the initial 60-day period.
(h) Rejection of documentation or certification. The processing
entity may reject documentation referred to in paragraph (f) of this
section, or a certification provided under paragraphs (a)(2), (b)(2),
(d), or (g)(1) of this section, only for such reasons as HUD and the HA
may prescribe in applicable administrative instructions.
(i) Information on SSNs and EINs. (1) Information regarding SSNs
and SSN cards may be obtained by contacting the local SSA Office or
consulting the SSA regulations at 20 CFR chapter III (see,
particularly, part 422).
(2) Information regarding EINs may be obtained by contacting the
local office of the IRS or consulting the appropriate regulations for
the IRS.
(j) Form and manner of certifications. The certifications referred
to in paragraphs (a)(2), (b)(2), (d), and (g)(1) of this section must
be in the form and manner that HUD and the HA prescribe in applicable
administrative instructions. If an individual who is required to
execute a certification is less than 18 years of age, the certification
must be executed by his or her parent or guardian or, in accordance
with administrative instructions, by the individual or another person.
(Approved by the Office of Management and Budget under control
number 2502-0204.)
Sec. 5.218 Penalties for failing to disclose and verify Social
Security and Employer Identification Numbers.
(a) Denial of eligibility: assistance applicants and individual
owner applicants. The processing entity must deny the eligibility of an
assistance applicant or individual owner applicant in accordance with
the provisions governing the program involved, if the assistance or
individual owner applicant does not meet the applicable SSN disclosure,
documentation and verification, and certification requirements
specified in Sec. 5.216.
(b) Denial of eligibility: entity applicants. The processing entity
must deny the eligibility of an entity applicant in accordance with the
provisions governing the program involved; if:
(1) The entity applicant does not meet the applicable EIN
disclosure and verification requirements specified in Sec. 5.216; or
(2) Any of the officials of the entity applicant referred to in
Sec. 5.216(c) does not meet the applicable SSN disclosure, and
documentation and verification requirements specified in Sec. 5.216.
(c) Termination of assistance or tenancy: participants. The
processing entity must terminate the assistance or tenancy, or both, of
a participant, in accordance with the provisions governing the program
involved, if the participant does not meet the applicable SSN
disclosure, documentation and verification, and certification
requirements specified in Sec. 5.216.
(d) Cross reference. Individuals should consult the regulations and
administrative instructions for the programs covered under this subpart
B for further information on the use of SSNs and EINs in determinations
regarding eligibility.
Procedures for Obtaining Income Information About Applicants and
Participants
Sec. 5.230 Consent by assistance applicants and participants.
(a) Required consent by assistance applicants and participants.
Each member of the family of an assistance applicant or participant who
is at least 18 years of age, and each family head and spouse regardless
of age, shall sign one or more consent forms.
(b) Consent authorization. (1) To whom and when. The assistance
applicant shall submit the signed consent forms to the processing
entity when eligibility under a covered program is being determined. A
participant shall sign and submit consent forms at the next regularly
scheduled income reexamination. Assistance applicants and participants
shall be responsible for the signing and submitting of consent forms by
each applicable family member.
(2) Subsequent consent forms--special cases. Participants are
required to sign and submit consent forms at the next interim or
regularly scheduled income reexamination under the following
circumstances:
(i) When any person 18 years or older becomes a member of the
family;
(ii) When a member of the family turns 18 years of age; and
(iii) As required by HUD or the HA in administrative instructions.
(c) Consent form--contents. The consent form required by this
section shall contain, at a minimum, the following:
(1) A provision authorizing HUD and HAs to obtain from SWICAs any
information or materials necessary to complete or verify the
application for participation and to maintain continued assistance
under a covered program; and
(2) A provision authorizing HUD, HAs, or the owner responsible for
determining eligibility for or the level of assistance to verify with
previous or current employers income information pertinent to the
assistance applicant's or participant's eligibility for or level of
assistance under a covered program;
(3) A provision authorizing HUD to request income return
information from
[[Page 11117]]
the IRS and the SSA for the sole purpose of verifying income
information pertinent to the assistance applicant's or participant's
eligibility or level of benefits; and
(4) A statement that the authorization to release the information
requested by the consent form expires 15 months after the date the
consent form is signed.
Sec. 5.232 Penalties for failing to sign consent forms.
(a) Denial or termination of benefits. In accordance with the
provisions governing the program involved, if the assistance applicant
or participant, or any member of the assistance applicant's or
participant's family, does not sign and submit the consent form as
required in Sec. 5.230, then:
(1) The processing entity shall deny assistance to and admission of
an assistance applicant;
(2) Assistance to, and the tenancy of, a participant may be
terminated.
(b) Cross references. Individuals should consult the regulations
and administrative instructions for the programs covered under this
subpart B for further information on the use of income information in
determinations regarding eligibility.
Sec. 5.234 Requests for information from SWICAs and Federal agencies;
restrictions on use.
(a) Information available from SWICAs and Federal agencies--to whom
and what. Income information will generally be obtained through
computer matching agreements between HUD and a SWICA or Federal agency,
or between a HA and a SWICA, as described in paragraph (c) of this
section. Certification that the applicable assistance applicants and
participants have signed appropriate consent forms and have received
the necessary Privacy Act notice is required, as follows:
(1) When HUD requests the computer match, the processing entity
shall certify to HUD; and
(2) When the HA requests the computer match, the HA shall certify
to the SWICA.
(b) Restrictions on use of information. The restrictions of 42
U.S.C. 3544(c)(2)(A) apply to the use by HUD or a HA of income
information obtained from a SWICA. The restrictions of 42 U.S.C.
3544(c)(2)(A) and of 26 U.S.C. 6103(l)(7) apply to the use by HUD or a
HA of income information obtained from the IRS or SSA.
(c) Computer matching agreements. Computer matching agreements
shall specify the purpose and the legal authority for the match, and
shall include a description of the records to be matched, a statement
regarding disposition of information generated through the match, a
description of the administrative and technical safeguards to be used
in protecting the information obtained through the match, a description
of the use of records, the restrictions on duplication and
redisclosure, a certification, and the amount that will be charged for
processing a request.
(Approved by the Office of Management and Budget under control
number 2508-0008.)
Sec. 5.236 Procedures for termination, denial, suspension, or
reduction of assistance based on information obtained from a SWICA or
Federal agency.
(a) Termination, denial, suspension, or reduction of assistance.
The provisions of 42 U.S.C. 3544(c)(2)(B) and (C) shall govern the
termination, denial, suspension, or reduction of benefits for an
assistance applicant or participant based on income information
obtained from a SWICA or a Federal agency. Procedures necessary to
comply with these provisions are provided in paragraph (b) of this
section.
(b) Procedures for independent verification. (1) Any determination
or redetermination of family income made on the basis of information
verified in accordance with paragraph (b) of this section shall be
carried out in accordance with the requirements and procedures
applicable to the individual covered program. Independent verification
of information obtained from a SWICA or a Federal agency may be:
(i) By HUD; and
(ii) By a HA, when the benefit to be provided to the assistance
applicant or participant is under a program in parts 880, 882, 886,
887, 891, 904, 950, or 960 of this title, including when the HA is the
contract administrator for the owner.
(2) Upon receiving income information from a SWICA or a Federal
agency, HUD or, when applicable, the HA shall compare the information
with the information about a family's income that was:
(i) Provided by the assistance applicant or participant to the HA;
or
(ii) Obtained by the owner (or mortgagee, as applicable) from the
assistance applicant or participant or from his or her employer.
(3) When the income information reveals an employer or other income
source that was not disclosed by the assistance applicant or
participant, or when the income information differs substantially from
the information received from the assistance applicant or participant
or from his or her employer:
(i) HUD or, as applicable or directed by HUD, the HA shall request
the undisclosed employer or other income source to furnish any
information necessary to establish an assistance applicant's or
participant's eligibility for or level of assistance in a covered
program. This information shall be furnished in writing, as directed
to:
(A) HUD, with respect to programs under parts 215, 221, 235, 236,
or 290 of this title;
(B) The HA, with respect to programs under parts 880, 882, 886,
887, 891, 904, 950, or 960 of this title for which the HA is
responsible for determining eligibility or level of benefits; or
(C) The owner (or mortgagee, as applicable), with respect to
programs under parts 215, 221, 235, 236, or 290 of this title, or when
the owner is responsible under parts 880, 882, 886, 887, 891, 904, 950,
or 960 of this title for determining eligibility or the level of
assistance; or
(ii) HUD or the HA may verify the income information directly with
an assistance applicant or participant. Such verification procedures
shall not include any disclosure of income information prohibited under
paragraph (b)(6) of this section.
(4) HUD and the HA shall not be required to pursue these
verification procedures when the sums of money at issue are too small
to raise an inference of fraud or justify the expense of independent
verification and the procedures related to termination, denial,
suspension, or reduction of assistance.
(5) Based on the income information received from a SWICA or
Federal agency, HUD or the HA, as appropriate, may inform an owner (or
mortgagee) that an assistance applicant's or participant's eligibility
for or level of assistance is uncertain and needs to be verified. The
owner (or mortgagee) shall then confirm the assistance applicant's or
participant's income information by checking the accuracy of the
information with the employer or other income source, or directly with
the family.
(6) Nondisclosure of Income information. Neither HUD nor the HA may
disclose income information obtained from a SWICA directly to an owner
(unless a HA is the owner). Disclosure of income information obtained
from the SSA or IRS is restricted under 26 U.S.C. Sec. 6103(l)(7) and
42 U.S.C. 3544.
(c) Opportunity to contest. HUD, the HA, or the owner (or
mortgagee, as applicable) shall promptly notify any
[[Page 11118]]
assistance applicant or participant in writing of any adverse findings
made on the basis of the information verified in accordance with
paragraph (b) of this section. The assistance applicant or participant
may contest the findings in the same manner as applies to other
information and findings relating to eligibility factors under the
applicable program. Termination, denial, suspension, or reduction of
assistance shall be carried out in accordance with requirements and
procedures applicable to the individual covered program, and shall not
occur until the expiration of any notice period provided by the statute
or regulations governing the program.
Sec. 5.238 Criminal and civil penalties.
Persons who violate the provisions of 42 U.S.C. 3544 or 26 U.S.C.
6103(l)(7) with respect to the use and disclosure of income information
may be subject to civil or criminal penalties under 42 U.S.C.
3544(c)(3), 26 U.S.C. 7213(a), or 18 U.S.C. 1905.
PART 200 --INTRODUCTION
3. The authority citation for part 200 continues to read as
follows:
Authority: 12 U.S.C. 1701-1715z-18; 42 U.S.C. 1436a and 3535(d).
4. Part 200 is amended by revising subparts T, U, and V to read as
follows:
PART 200--INTRODUCTION
* * * * *
Subpart T--Social Security Numbers and Employer Identification
Numbers; Assistance Applicants and Participants
Sec. 200.1001 Cross-reference.
The provisions in subpart B of part 5 of this title apply to Social
Security Numbers and Employer Identification Numbers for assistance
applicants and participants.
Subpart U--Social Security Numbers and Employer Identification
Numbers; Applicants in Unassisted Programs
Sec. 200.1101 Cross-reference.
The provisions in subpart B of part 5 of this title apply to Social
Security Numbers and Employer Identification Numbers for applicants in
unassisted programs.
Subpart V--Income Information; Assistance Applicants and
Participants
Sec. 200.1201 Cross-reference.
The provisions in subpart B of part 5 of this title apply to income
information for assistance applicants and participants.
PART 247--EVICTIONS FROM CERTAIN SUBSIDIZED AND HUD-OWNED PROJECTS
5. The authority citation for part 247 continues to read as
follows:
Authority: 12 U.S.C. 1701q, 1701s, 1715b, 1715l, 1715z-1; 42
U.S.C. 1437a, 1437c, 1437f, 3535(d).
6. Section 247.3 is amended by revising paragraph (c)(3), to read
as follows:
Sec. 247.3 Entitlement of tenants to occupancy.
* * * * *
(c) * * *
(3) If the tenant:
(i) Fails to supply on time all required information on the income
and composition, or eligibility factors, of the tenant household, as
provided in part 200, subpart G, of this chapter and part 5, subpart B,
of this title; or
(ii) Knowingly provides incomplete or inaccurate information as
required under these provisions; and
* * * * *
PART 572--HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM
(HOPE 3)
7. The authority citation for part 572 continues to read as
follows:
Authority: 42 U.S.C. 3535(d) and 12891.
Subpart B--Homeownership Program Requirements--Implementation
Grants
Sec. 572.110 [Amended]
8. In Sec. 572.110, paragraphs (d) (1) and (2) are amended by
removing the references to ``24 CFR part 750'' and ``24 CFR part 760'',
and by adding in their places, ``part 5, subpart B, of this title'',
respectively.
PART 750--[REMOVED]
8a. Part 750 is removed.
PART 760--[REMOVED]
8b. Part 760 is removed.
PART 882--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--EXISTING
HOUSING
9. The authority citation for part 882 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d).
Subpart A--Applicability, Scope and Basic Policies
Sec. 882.118 [Amended]
10. In Sec. 882.118, paragraph (a)(1) is amended by removing the
references ``24 CFR part 750'' and ``24 CFR part 760'', and by adding
in their places, ``part 5, subpart B, of this title'', respectively.
Subpart B--Project Development and Operation
Sec. 882.212 [Amended]
11. Section 882.212 is amended:
a. In paragraph (a) by removing the parenthetical reference ``(see
24 CFR parts 750, 760, and 813)'', and by adding in its place the
parenthetical reference ``(see parts 5, subpart B, and 813 of this
title)'';
b. In paragraph (b) by removing the references ``24 CFR
750.10(d)(2)(i)'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title''; and
c. In paragraph (c) by removing the references ``24 CFR part 750''
and ``24 CFR part 760'', and by adding in their places the reference
``part 5, subpart B, of this title'', respectively.
Subpart E--Special Procedures for Moderate Rehabilitation--Program
Development and Operation
Sec. 882.515 [Amended]
12. Section 882.515 is amended:
a. In paragraph (a) by removing the reference ``24 CFR part 760'',
and by adding in its place the reference ``part 5, subpart B, of this
title'';
b. In paragraph (b) by removing the references ``24 CFR
750.10(d)(2)(i)'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively; and
c. In paragraph (c) by removing the references ``24 CFR part 750''
and ``24 CFR part 760'', and by adding in their places the reference
``part 5, subpart B, of this title'', respectively.
PART 886--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM-- SPECIAL
ALLOCATIONS
13. The authority citation for part 886 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 3535(d), and 13611-
13619.
Subpart A--Additional Assistance Program for Projects With HUD-
Insured and HUD-Held Mortgages
Sec. 886.105 [Amended]
14. Section 886.105 is amended in the undesignated paragraph
following
[[Page 11119]]
paragraph (f) by removing the reference ``24 CFR part 750'', and by
adding in its place the reference ``part 5, subpart B, of this title''.
Sec. 886.119 [Amended]
15. In Sec. 886.119, paragraphs (a) (3) and (7) are amended by
removing the references ``24 CFR part 750'' and ``24 CFR part 760'',
and by adding in their places the reference ``part 5, subpart B, of
this title'', respectively.
Sec. 886.124 [Amended]
16. Section 886.124 is amended:
a. In paragraph (a) by removing the reference ``24 CFR part 760'',
and by adding in its place the reference ``part 5, subpart B, of this
title'';
b. In paragraph (b) by removing the references ``24 CFR
750.10(d)(2)(i)'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively; and
c. In paragraph (c) by removing the references ``24 CFR part 750''
and ``24 CFR part 760'', and by adding in their places the reference
``part 5, subpart B, of this title'', respectively.
Subpart C--Section 8 Housing Assistance Program for the Disposition
of HUD-Owned Projects
Sec. 886.305 [Amended]
17. Section 886.305 is amended by removing the reference ``24 CFR
part 750'', and by adding in its place the reference ``part 5, subpart
B, of this title''.
Sec. 886.318 [Amended]
18. In Sec. 886.318, paragraphs (a) (3) and (6) are amended by
removing the references ``24 CFR part 750'' and ``24 CFR part 760'',
and by adding in their places the reference ``part 5, subpart B, of
this title'', respectively.
Sec. 886.324 [Amended]
19. Section 886.324 is amended:
a. In paragraphs (a) and (c) by removing the references ``24 CFR
part 750'' and ``24 CFR part 760'', and by adding in their places the
reference ``part 5, subpart B, of this title'', respectively; and
b. In paragraph (b) by removing the references ``24 CFR
750.10(d)(2)(i)'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively.
PART 887--HOUSING VOUCHERS
20. The authority citation for part 887 continues to read as
follows:
Authority: 42 U.S.C. 1437f(o) and 3535(d).
Subpart H--Payment Standard and Housing Assistance Payment
Sec. 887.355 [Amended]
21. Section 887.355(a) is amended by removing the references ``24
CFR part 750'' and ``24 CFR part 760'', and by adding in their places
the reference ``part 5, subpart B, of this title'', respectively.
PART 913--DEFINITION OF INCOME, INCOME LIMITS, RENT AND
REEXAMINATION OF FAMILY INCOME FOR THE PUBLIC HOUSING PROGRAM
22. The authority citation for part 913 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437d, 1437n and 3535(d).
Sec. 913.109 [Amended]
23. In Sec. 913.109, paragraphs (a) and (b) are amended by removing
the references ``24 CFR part 750'' and ``24 CFR part 760'', and by
adding in their places the reference ``part 5, subpart B, of this
title'', respectively.
PART 950--INDIAN HOUSING PROGRAMS
24. The authority citation for part 950 is revised to read as
follows:
Authority: 25 U.S.C. 450e(b); 42 U.S.C. 1437aa-1437ee, and
3535(d).
Subpart D--Operation
Sec. 950.301 [Amended]
25. In Sec. 950.301, paragraphs (a)(3)(v) and (vi) are amended by
removing the references ``24 CFR part 750'' and ``24 CFR part 760'',
and by adding in their places the reference ``part 5, subpart B, of
this title'', respectively.
Sec. 950.315 [Amended]
26. In Sec. 950.315, paragraph (b) is amended by removing the
references ``24 CFR part 760'' and ``24 CFR part 750'', and by adding
the reference ``part 5, subpart B, of this title'', respectively.
Subpart E--Mutual Help Homeownership Opportunity Program
Sec. 950.416 [Amended]
27. In Sec. 950.416, paragraph (d) is amended by removing the
reference ``24 CFR part 750'', and by adding in its place the reference
``part 5, subpart B, of this title''.
PART 960--ADMISSION TO, AND OCCUPANCY OF, PUBLIC HOUSING
28. The authority citation for part 960 continues to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437n, and 3535(d).
Subpart B--Admission, Rent and Reexamination
Sec. 960.209 [Amended]
29. Section 960.209 is amended:
a. In paragraph (a) by removing the references ``24 CFR part 750''
and ``24 CFR part 760'', and by adding in its place the reference
``part 5, subpart B, of this title''; and
b. In paragraph (b) by removing the references ``24 CFR
750.10(d)(2)(i)'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively.
PART 982--SECTION 8 TENANT-BASED ASSISTANCE: UNIFIED RULE FOR
TENANT-BASED ASSISTANCE UNDER THE SECTION 8 RENTAL CERTIFICATE
PROGRAM AND THE SECTION 8 RENTAL VOUCHER PROGRAM
30. The authority citation for part 982 is revised to read as
follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, and 3535(d).
Subpart L--Family Obligations; Denial and Termination of Assistance
Sec. 982.551 [Amended]
31. Section 982.551(b)(3) is amended by removing the references
``24 CFR part 750'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively.
PART 983--SECTION 8 PROJECT-BASED CERTIFICATE PROGRAM
32. The authority citation for part 983 continues to read as
follows:
Authority: 42 U.S.C. 1437f and 3535(d).
Subpart E--Management
Sec. 983.205 [Amended]
33. Section 983.205(b)(3) is amended by removing the references
``24 CFR part 750'' and ``24 CFR part 760'', and by adding in their
places the reference ``part 5, subpart B, of this title'',
respectively.
Dated: March 6, 1996.
Henry G. Cisneros,
Secretary.
[FR Doc. 96-6215 Filed 3-15-96; 8:45 am]
BILLING CODE 4210-32-P