[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.

-----------------------------------------------------------------------

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.

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(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