[Federal Register Volume 65, Number 169 (Wednesday, August 30, 2000)]
[Notices]
[Pages 52777-52780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22182]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4456--N-11]


Privacy Act of 1974--Proposed Amendment to a System of Records

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification of the re-designation of an existing system of 
records and proposed amendments to the system of records.

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SUMMARY: Pursuant to the provision of the Privacy Act of 1974, as 
amended (5 U.S.C. 552a), the Department of Housing and Urban 
Development is re-designating HUD/PIH-1, ``Tenant Eligibility 
Verification Files,'' previously published on February 9, 1999 (64 FR 
6371); to the new designation HUD/REAC-1, ``Tenant Eligibility 
Verification Files.'' The system of records notice below supersedes the 
system of records notice published on, February 9, 1999 (64 FR 6371). 
HUD/REAC-1 contains the same provisions as HUD/PIH-1 except for the 
following substantive changes: (1) The re-designation of the system of 
records to HUD/REAC-1 recognizes the transfer of responsibilities for 
the computer matching program from the Office of Public and Indian 
Housing to the Real Estate Assessment Center (REAC); and (2) HUD/REAC-1 
expands the type of files to include: (a) Automated records used by 
housing agencies, owners and agents when providing HUD with information 
on actions taken to resolve income differences noted by computer 
matching, and (b) encrypted read-only files REAC employees may use 
while at housing agency, owner or agent sites containing SSA and IRS 
information subject to the disclosure provisions of 26 U.S.C. 6103. 
Aggregated statistics on the initial computer matching results and 
actions taken to resolve income differences may be made available to 
internal HUD Program Offices and HUD-contracted Contract 
Administrators.
    HUD/REAC-1 contains computer matching and other tenant eligibility 
verification records necessary to support the identification of tenants 
who have been or may be obtaining inappropriate (excessive or 
insufficient) rental assistance. The system of records also supports 
disclosure of information, other than Federal tax return information, 
concerning those tenants to entities that administer HUD rental 
assistance programs and to law enforcement agencies for possible 
administrative or legal actions, as appropriate. Entities that 
administer HUD rental assistance programs are: housing agencies, Indian 
Tribes and Tribally Designated Housing Entities participating in the 
Section 8 Program, owners of subsidized multifamily projects, and 
management agents (hereinafter referred to collectively as ``POAs''); 
under certain limited circumstances, such as when HUD declares a Public 
Housing Authority in breach of an annual contributions contract, HUD 
itself may act as a POA. Additionally, HUD/REAC-1 provides information 
needed to evaluate actions taken to resolve income discrepancies 
affecting rental assistance.

DATES: Effective Date: This proposal shall become effective without 
further notice on September 29, 2000 unless comments are received 
during or before this period which would result in a contrary 
determination.
    Comments Due By: September 29, 2000.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, Room 
10276, Department of Housing and Urban Development, 451 Seventh Street, 
SW, Washington, DC 20410-0500. Communications should refer to the above 
docket number and title. An original and four copies of comments should 
be submitted. Facsimile (FAX) comments are not acceptable. A copy of 
each communication submitted will be available for public inspection 
and copying between 7:30 a.m. and 5:30 p.m. weekdays at the above 
address.

FOR FURTHER INFORMATION CONTACT: Jeanette Smith, Departmental Privacy 
Act Officer, Telephone Number (202) 708-2374, concerning Privacy Act 
matters. Regarding records maintained in Washington, DC; Chicago, 
Illinois; and Seattle, Washington contact the following, respectively: 
David L. Decker, Project Manager, Tenant Assessment Sub-System, REAC, 
Telephone Number (202) 708-4932, extension 3214; William Siska, 
Director, Chicago Technical Assistance Center, Telephone Number (312) 
353-6236, extension 2084; and Gordon Brandhagen, Director, Seattle 
Technical Assistance Center, Telephone Number (206) 220-5312. (These 
are not toll free numbers.)

SUPPLEMENTARY INFORMATION: HUD published a notice on September 14, 1999 
(64 FR 49817) of its plan for large-scale implementation of its 
existing computer matching program concerning tenant data in assisted 
housing programs. During the second and third quarter of Fiscal Year 
2000 HUD began sending letters containing SSA and IRS return 
information to tenants, and notices of potential income discrepancies 
to housing agencies, owners and agents based on its large-scale 
matching initiative.
    A report of the Department's intention to establish the system has 
been submitted to the Office of Management and Budget (OMB), the Senate 
Committee on Governmental Affairs, and the House Committee on 
Government Operations pursuant to paragraph 4c of Appendix I to OMB 
Circular No. A-130, ``Federal Agency Responsibilities for Maintaining 
Records About Individuals,'' July 25, 1994; 59 FR 37914.

    Authority: 5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d).

    Dated: August 22, 2000.
Gloria R. Parker,
Chief Information Officer.
HUD/REAC-1

System Name:
    Tenant Eligibility Verification Files.

System Locations:
    The files will be maintained at the following locations: (1) U. S. 
Department of Housing and Urban Development, Real Estate Assessment 
Center, 1280 Maryland Avenue, SW, Suite 800, Washington, DC 20024-2635; 
(2) Chicago Technical Assistance Center, U.S. Department of Housing & 
Urban Development, Ralph H. Metcalfe Federal Building, 77 West Jackson 
Boulevard, Chicago, Illinois 60604; (3) Seattle Technical Assistance 
Center, U.S. Department of Housing & Urban Development, Seattle Federal 
Building, 909 First Avenue, Seattle, Washington 98104. Controls will be 
established at 1280 Maryland Avenue, SW, for any encrypted files 
containing SSA and IRS return information (subject to the

[[Page 52778]]

provisions of 26 U.S.C. 6103) that are created and used by REAC 
employees who will travel to the sites of housing agencies, owners and 
management agents.
* * * * *

Categories of Records in the System:
* * * * *

Categories of Individuals Covered by the System:
    Tenants receiving rental assistance provided by programs 
administered by the Department of Housing and Urban Development, state 
agencies, and POAs.

Categories of Records in the System:
    Records consist of: (1) Automated tenant data obtained from HUD/H-
11, Tenant Housing Assistance and Contract Verification Data, published 
at 62 FR 11909; March 13, 1997, [two HUD automated systems--the 
Multifamily Tenant Certification System and the Tenant Rental 
Assistance Certification System--are the primary components of HUD/H-
11]; (2) automated tenant data provided by POAs [generally these 
records are available in HUD/H-11]; (3) information obtained from 
computer matching with automated earned income data that the Social 
Security Administration (SSA) provides under 26 U.S.C. 6103(l)(7)(A) 
from the Earnings Recording and Self-Employment Income System (HHS/SSA/
OSR, 09-60-0059) (Earnings Record) and Master Beneficiary Record (HHS/
SSA/OSR, 09-60-0090); (4) information obtained from computer matching 
with automated unearned income data that the Internal Revenue Service 
(IRS) provides to HUD under 26 U.S.C. 6103(l)(7)(B) from Treasury/IRS 
22.061, Wage and Information Returns Processing (IRP) File Treasury/
IRS; (5) information obtained from computer matching with automated 
Title II (social security) and Title XVI (supplemental security income) 
data that the SSA provides to HUD under a routine use from the 
Supplemental Security Income Record, HHS/SSA/OSR 90-60-0103; (6) 
information obtained from computer matching with wage and unemployment 
compensation data from State wage information collection agencies; (7) 
information obtained from computer matching with automated data from 
the Office of Personnel Management's General Personnel Records (OPM/
GOVT-1), and the Civil Service Retirement and Insurance Records System 
(OPM/Central-1) pursuant to a routine use; (8) information obtained 
from computer matching with automated data from the Department of 
Defense's Defense Manpower Data Center Data Base (S322.10.DMDC) 
pursuant to a routine use; (9) information obtained from computer 
matching with automated records from the SSA's Master Files of Social 
Security Number Holders, known as the Enumeration Verification System 
(HHS/SSA/OSR, 09-60-0058) pursuant to a routine use; (10) applications 
for rental assistance and other related documentation obtained from 
tenant case files maintained by POAs; (11) data received from employers 
confirming income or deductions supporting determinations of 
eligibility for, and the amount of, rental assistance benefits; (12) 
automated records provided by other Federal agencies under the 
investigative exclusion of the Computer Matching and Privacy Protection 
Act of 1988; (13) automated records provided by POAs regarding actions 
taken on computer matching results; (14) automated records created by 
the REAC for use by POAs in recording the actions taken to resolve 
income differences noted by the computer matching and (15) 
correspondence or other documents received from tenants concerning 
potential income discrepancies.

Authority for Maintenance of the System:
    Subparagraph (D) of section 6103(l)(7) of the Internal Revenue Code 
26 U.S.C. 6103(l)(7)(D), permits HUD to request from the Commissioner 
of the SSA and the Secretary of the Treasury, SSA and IRS earned and 
unearned income information, respectively, needed to verify the incomes 
of tenants who receive rental assistance. Section 6103(l)(7)(D) 
precludes HUD from redisclosing that information to entities that 
administer HUD programs (i.e. POAs). Section 542(b) of HUD's 1998 
Appropriations Act (Pub. L. 105-65; October 27, 1997) eliminated a 
September 30, 1998 sunset provision to 26 U.S.C. 6103(l)(7)(D), 
effectively making permanent the authority for SSA and IRS disclosures 
of return information to HUD.
    The Stewart B. McKinney Homeless Assistance Amendments Act of 1988, 
42 U.S.C. 3544, as amended, allows HUD to notify POAs that 
discrepancies exist between the tenant-reported incomes and income 
obtained from independent income sources, i.e., the SSA or the IRS. The 
McKinney Amendments of 1988 also authorized HUD to request, under 
section 303(i) of the Social Security Act, wage and claim information 
from state agencies responsible for the administration of state 
unemployment law. Section 542(a)(1) of HUD's 1998 Appropriation Act, 
referenced above, eliminated an October 1, 1994, sunset provision to 
section 303(i) of the Social Security Act, effectively making permanent 
the authority requiring state agencies to disclose wage and claim 
information to HUD and public housing agencies.
    Section 165 of the Housing and Community Development Act of 1987, 
Public Law 100-242; authorizes HUD to require applicants and 
participants in HUD-administered programs involving rental assistance 
to disclose to HUD their social security numbers as a condition of 
initial or continuing eligibility for participation. Subpart T of 24 
CFR part 200 applies this requirement to member of households six (6) 
years of age and older.
    Applicable laws concerning HUD's assisted housing programs include: 
the United States Housing Act of 1937, 42 U.S.C. 1437 note; and section 
101 of the Housing and Urban Development Act of 1965, 12 U.S.C. 1701s, 
and the Native American Housing Assistance and Self-Determination Act 
of 1996, 25 U.S.C. 4101, et seq.

Purpose(s):
    The primary purposes of HUD/REAC-1 are to aid HUD and entities that 
administer HUD's assisted housing programs in: (a) Increasing the 
availability of rental assistance to individuals who meet the 
requirements of Federal rental assistance programs, (b) detecting 
abuses in assisted housing programs, (c) taking administrative or legal 
actions to resolve past abuses of assisted housing programs, (d) 
deterring abuses, and (e) evaluating the effectiveness of income 
discrepancy resolution actions taken by public housing agencies, owners 
and agents for HUD's rental assistance programs. HUD/REAC-1 serves as a 
repository for automated information used in and resulting from 
computer matching of tenant data for recipients of Federal rental 
assistance to other data sources; HUD/REAC-1 also contains non-
automated information used in and resulting from verifying computer 
matching results and in accomplishing the purposes previously cited. 
Records in this system are subject to use in authorized and approved 
computer matching programs regulated under the Privacy Act of 1974, as 
amended.

Routine Uses of Records Maintained in the System, Including Categories 
of Users and Purposes of Such Uses:
    For all routine uses, return information obtained from the Internal 
Revenue Service under 26 U.S.C. 6103(l)(7) may only be disclosed as 
provided by 26 U.S.C. 6103.

[[Page 52779]]

    1. Records included in the system may be used in conducting 
computer matching with Federal and State agencies to aid in the 
identification of tenants who have received inappropriate (excessive or 
insufficient) rental housing assistance.
    2. Records that HUD obtains from the SSA and the IRS under the 
authority of 26 U.S.C. 6103(l)(7), may be disclosed only as permitted 
under 26 U.S.C. 6103, which limits disclosure to the tenant/taxpayer, 
and to HUD employees whose duties require access for the purpose for 
which the disclosure to HUD was made.
    3. Records other than return information obtained from the SSA and 
IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed to 
the appropriate Federal, state or local agency charged with the 
responsibility for investigating or prosecuting a violation of law, 
whether criminal, civil or regulatory in nature, or enforcing or 
implementing a statute, rule or regulation.
    4. Records other than return information obtained from the SSA and 
IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed to a 
congressional office in response to an inquiry from that congressional 
office made at the request of the individual who is the subject of the 
records.
    5. Records other than return information obtained from the SSA and 
IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed to 
POAs in order to assist them in determining tenants' eligibility for 
rental assistance, and the amount of that assistance and to facilitate 
recovery of money or property or other administrative actions (e.g., 
eviction), necessary to promote the integrity of programs.
    6. Records other than return information obtained from the SSA and 
the IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed 
during the course of an administrative proceeding where HUD or POAs are 
a party to the litigation and disclosure is relevant and reasonably 
necessary to adjudicate the matter.
    7. Records other than return information obtained from the SSA and 
the IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed 
to a Federal agency, in response to its request, in connection with the 
hiring or retention of an employee, the issuance of a security 
clearance, the reporting of an investigation of an employee, the 
letting of a contract, or the issuance of a license, grant or other 
benefit by the requesting agency, to the extent that the record is 
relevant and necessary to the requesting agency's decision on the 
matter.
    8. Records other than return information obtained from the SSA and 
the IRS under the authority of 26 U.S.C. 6103(l)(7), may be disclosed 
to a Federal agency to initiate Federal salary or annuity offsets as 
necessary to collect excessive rental assistance received by the 
tenant.
    9. Records other than return information obtained from the SSA and 
the IRS under the authority of 26 U.S.C. 6103(l)(7), concerning an 
individual's receipt of excessive rental assistance, including the 
individual's actions to repay the same, may be disclosed to the Federal 
agency that employs such individual, for the purpose of notifying the 
employer of potential violation of the Standards of Ethical Conduct for 
Employees of the Executive Branch.
    10. Records other than return information obtained from the SSA and 
IRS under the authority of 26 U.S.C. 6103(l)(7), may be used to provide 
aggregate information on POAs' resolution efforts to Contract 
Administrators and internal HUD Offices for use in their mandated 
oversight responsibilities to ensure that POAs are providing 
appropriate rental assistance to eligible families and are resolving 
discrepancies identified by HUD.
    11. Records may be used to provide statistical information to 
Congress and the Office of Management and Budget for use in evaluating: 
the effectiveness of computer matching and income verification 
programs; program policies; and actions taken by entities that 
administer HUD's rental assistance programs to resolve income 
discrepancies identified through computer matching.

Policies and Practices for Storing, Retrieving, Accessing, Retaining 
and Disposing of Records in the System:
Storage:
    Records are stored manually in tenant case files and electronically 
in office automation equipment. Records other than return information 
obtained from the SSA and the IRS under the authority of 26 U.S.C. 
6103(l)(7), may also be stored on mainframe computer facilities or 
computer servers for public housing agencies', owners' and agents' 
access via the Internet to: (1) Obtain social security and supplemental 
security income data that is not subject to provisions of 26 U.S.C. 
6103, and (2) update actions taken in resolving income discrepancies. 
Records containing data subject to provisions of 26 U.S.C. 6103 may be 
stored in encrypted form on laptop computers that are taken to the 
sites of public housing agencies, owners and agents that administer 
HUD's rental assistance programs. Software precludes the transfer of 
any data subject to 26 U.S.C. 6103 to unencrypted media.

Retrievability:
    Records may be retrieved by manual or computer search of indices by 
the name, social security number, or POA.

Safeguards:
    Records are maintained in locked file cabinets or in metal file 
cabinets in secured rooms or premises with access limited to those 
persons whose official duties require access. Computer files and 
printed listings are maintained in locked cabinets. Computer terminals 
are secured in controlled areas which are locked when unoccupied. 
Access to automated records is limited to authorized personnel who must 
use a password system to gain access. HUD will safeguard the SSA and 
the IRS return information obtained pursuant to 26 U.S.C. 6103(l)(7)(A) 
and (B) in accordance with 26 U.S.C. 6103(p)(4) and the IRS's ``Tax 
Information Security Guidelines for Federal, State and Local 
Agencies,'' Publication 1075 (REV. 3/99).

Retention and Disposal:
    Only those computer files and printouts created from the computer 
matching that meet predetermined criteria are maintained. These records 
will be destroyed as soon as they have served the matching program's 
purpose. All other records will be destroyed as soon as possible within 
1 year. Paper listings containing personal identifiers will be 
shredded. Computer source files provided by other organizations will be 
returned to those organizations or destroyed in accordance with 
computer matching agreements.
    Information obtained through computer matching and tenant case file 
reviews will be destroyed as soon as follow-up processing of this 
information is completed, unless the information is required for 
evidentiary reasons or needed by POAs for use in program eligibility 
determinations. When needed for evidentiary documentation, the 
information will be referred to the HUD Office of Inspector General 
(OIG) or other appropriate Federal, state or local agencies charged 
with the responsibility for investigating or prosecuting such 
violations. When referred to the HUD OIG the information then becomes a 
part of the Investigative Files of the Office of Inspector General, 
HUD/OIG-1.

[[Page 52780]]

System Manager(s) and Address:
    Project Manager, Technical Assessment Sub-System, Real Estate 
Assessment Center, U.S. Department of Housing and Urban Development, 
1280 Maryland Avenue, SW, Suite 800, Washington, DC 20024-2135.

Notification and Record Access Procedures:
    Individuals seeking to determine whether this system of records 
contains information about themselves, or seeking access to such 
records, should address inquiries to the Project Manager, Technical 
Assessment Sub-System, Real Estate Assessment Center, U.S. Department 
of Housing and Urban Development, 1280 Maryland Avenue, SW, Suite 800, 
Washington, DC 20024-2635.
    Written requests should contain the full name, Social Security 
Number, date of birth, current address and telephone number of the 
individual.
    For personal visits, the individual must be able to provide some 
acceptable identification, such as a driver's license or other 
identification card.

CONTESTING RECORD PROCEDURES:
    The procedures for amendment or correction of records, and for 
appealing initial agency determinations, appear in 24 CFR part 16.

Record Source Categories:
    The REAC receives automated tenant data from the Assistant 
Secretary for Public and Indian Housing and the Assistant Secretary for 
Housing. The Assistant Secretaries collect information from a variety 
of sources, including POAs. The REAC receives data from POAs concerning 
actions taken to resolve income differences noted by HUD. Additionally, 
the REAC also receives data from other Federal and state agencies, law 
enforcement agencies, program participants, complainants, and other 
non-governmental sources.

Exemptions From Certain Provisions of the Act:
    To the extent that information in this system of records falls 
within the coverage of subsection (k)(2) of the Privacy Act, 5 U.S.C. 
552a(k)(2), the system is exempt from the requirements of subsections 
(c)(3), (d)(1), (d)(2) and (e)(1) of the Privacy Act. To the extent 
that information in this system of records falls within the coverage of 
subsection (k)(5) of the Privacy Act, 5 U.S.C. 552a(k)(5), the system 
is exempt from the requirements of subsection (d)(1) of the Privacy 
Act. See 24 CFR 16.15 (c) and (d).

[FR Doc. 00-22182 Filed 8-29-00; 8:45 am]
BILLING CODE 4210-01-P