[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Notices]
[Pages 62281-62284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-2806]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4922-N-03]


Privacy Act of 1974; Notice of Matching Program: Matching Tenant 
Data in Assisted Housing Programs

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice of a computer matching program between the Department of 
Housing and Urban Development (HUD) and the Office of Personnel 
Management (OPM).

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SUMMARY: Pursuant to the Computer Matching and Privacy Protection Act 
of 1988, as amended, and the Office of Management and Budget's (OMB) 
Guidance on the statute, HUD is updating its notice of a matching 
program involving comparisons between income data provided by 
applicants or participants in HUD's assisted housing programs and 
independent sources of income information. The matching program will be 
carried out to detect inappropriate (excessive or insufficient) housing 
assistance under the National Housing Act, the United States Housing 
Act of 1937, section 101 of the Housing and Community Development Act 
of 1965, the Native American Housing Assistance and Self-Determination 
Act of 1996, and the Quality Housing and Work Responsibility Act of 
1998. The program provides for the verification of the matching results 
and the initiation

[[Page 62282]]

of appropriate administrative or legal actions.
    This notice supplements the overview of computer matching for HUD's 
assisted housing programs published in the Federal Register on March 9, 
2004 (69 FR 11033). The March notice describes HUD's program for 
computer matching of its tenant data to: (a) The Social Security 
Administration's (SSA's) earned income and the Internal Revenue 
Service's (IRS's) unearned income data, (b) SSA's wage, social 
security, supplemental security income and special veterans benefits 
data, (c) State Wage Information Collection Agencies' (SWICAs') wage 
and unemployment benefit claim information. This notice describes HUD's 
program for computer matching of its tenant data to OPM's personnel 
data.

DATES: Effective Date: Computer matching is expected to begin November 
24, 2004 unless comments are received which will result in a contrary 
determination, or 40 days from the date a computer matching agreement 
is signed, whichever is later.
    Comments Due Date: November 24, 2004.

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. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at 
the above address.

FOR FURTHER INFORMATION CONTACT: For Privacy Act: Jeanette Smith, 
Departmental Privacy Act Officer, Room P8001, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410--
telephone number (202) 708-2374. A telecommunications device for 
hearing- and speech-impaired individuals (TTY) is available at 1-800-
877-8339 (Federal Information Relay Service).
    For further information from recipient agency: Bryan Saddler, 
Counsel to the Inspector General, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 8260, Washington, DC 20410-
4500, (202) 708-1613.

SUPPLEMENTARY INFORMATION: The Computer Matching and Privacy Protection 
Act (CMPPA) of 1988, an amendment to the Privacy Act of 1974 (5 U.S.C. 
552a), OMB's guidance on this statute entitled ``Final Guidance 
Interpreting the Provisions of Public Law 100-503, the CMPPA of 1988'' 
(OMB Guidance), and OMB Circular No. A-130 requires publication of 
notices of computer matching programs. Appendix I to OMB's Revision of 
Circular No. A-130, ``Transmittal Memorandum No. 4, Management of 
Federal Information Resources,'' prescribes federal agency 
responsibilities for maintaining records about individuals. In 
compliance with the CMPPA and Appendix I to OMB Circular No. A-130, 
copies of this notice are being provided to the Committee on Government 
Reform and Oversight of the House of Representatives, the Committee on 
Governmental Affairs of the Senate, and OMB's Office of Information and 
Regulatory Affairs.

I. Authority

    This matching program is being conducted pursuant to sections 3003 
and 13403 of the Omnibus Budget Reconciliation Act of 1993 (Pub. L. 
103-66, approved August 10, 1993); section 542(b) of the 1998 
Appropriations Act (Pub. L. 105-65); section 904 of the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544); 
section 165 of the Housing and Community Development Act of 1987 (42 
U.S.C. 3543); the National Housing Act (12 U.S.C. 1701-1750g); the 
United States Housing Act of 1937 (42 U.S.C. 1437-1437z); section 101 
of the Housing and Community Development Act of 1965 (12 U.S.C. 1701s); 
the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4101 et seq.); and the Quality Housing and Work 
Responsibility Act of 1998 (42 U.S.C. 1437a(f)); the Inspector General 
Act of 1978 (5 U.S.C. App. 3); and 65 FR 24732 and 64 FR 54930.
    The Omnibus Budget Reconciliation Act of 1993 (Budget 
Reconciliation Act) authorizes HUD to request from the SSA and the IRS 
federal tax information as prescribed in section 6103(l)(7) of title 26 
of the United States Code (Internal Revenue Code). Section 542(b) of 
HUD's 1998 Appropriation Act (Pub. L. 105-65; October 27, 1997) 
eliminated a September 30, 1998, sunset provision to 26 U.S.C. 
6103(l)(7)(D)(ix) of the Internal Revenue Code, effectively making 
permanent the authority for SSA and IRS disclosures of federal tax 
information to HUD.
    Section 3003 of the Budget Reconciliation Act authorizes HUD to 
require applicants and participants in assisted housing programs sign a 
consent form authorizing the Secretary of HUD to request that the 
Commissioner of Social Security and the Secretary of the Treasury 
release the federal tax information. The final rule regarding 
participants' consent to the release of information was published by 
HUD in the Federal Register on March 20, 1995 (61 FR 11112).
    The Stewart B. McKinney Homeless Assistance Amendments Act of 1988 
authorizes HUD and Public Housing Agencies (but not private owners/
management agents for subsidized multifamily projects (hereafter 
collectively referred to as ``POAs'')) to request wage and claim 
information from SWICAs responsible for administering state 
unemployment laws in order to undertake computer matching. This Act 
authorizes HUD to require applicants and participants to sign a consent 
form authorizing HUD or the POA to request wage and claim information 
from the SWICAs.
    The Housing and Community Development Act of 1987 authorizes HUD to 
require applicants and participants (as well as members of their 
household six years of age and older) in HUD-administered programs 
involving rental assistance to disclose to HUD their social security 
numbers (SSNs) as a condition of initial or continuing eligibility for 
participation in the programs.
    The Quality Housing and Work Responsibility Act of 1998 (QHWRA), 
section 508(d), 42 U.S.C. 1437a(f) authorizes the Secretary of HUD to 
require disclosure by the tenant to the public housing agency of income 
information received by the tenant from HUD as part of income 
verification procedures of HUD. The QHWRA was amended by Public Law 
106-74, which extended the disclosure requirements to participants in 
section 8, section 202, and section 811 assistance programs. The 
participants are required to disclose the HUD-provided income 
information to owners responsible for determining the participants' 
eligibility or level of benefits.
    The Inspector General Act authorizes the HUD Inspector General to 
undertake programs to detect and prevent fraud and abuse in all HUD 
programs.
    The OPM's disclosure of income data on current and retired federal 
employees is authorized by subsection (b)(3) of the Privacy Act of 
1974, 5 U.S.C. 552a(b)(3). The disclosures from the OPM/GOVT-1 system 
will be made pursuant to routine use ``hh'' and the disclosures from 
the OPM/Central-1 will be made pursuant to routine use ``s'' and 
``ff.'' See 65 FR 24732 and 64 FR 54930, respectively. The routine uses 
permit disclosure to agencies to help eliminate fraud and abuse in 
federal benefits programs.

[[Page 62283]]

II. Objectives To Be Met by the Matching Program

    HUD's primary objective in implementing the computer matching 
program is to increase the availability of rental assistance to 
individuals who meet the requirements of the rental assistance 
programs. Other objectives include determining the appropriate level of 
rental assistance, and deterring and correcting abuse in assisted 
housing programs. In meeting these objectives HUD also is carrying out 
a responsibility under 42 U.S.C. 1437f(K) to ensure that income data 
provided to POAs by household members is complete and accurate.
    HUD's various assisted housing programs, available through POAs, 
require that applicants meet certain income and other criteria to be 
eligible for rental assistance. In addition, tenants generally are 
required to report the amounts and sources of their income at least 
annually. However, under the QHWRA of 1998, public housing agencies may 
now offer tenants the option to pay a flat rent, or an income-based 
rent. Those tenants who select a flat rent will be required to 
recertify income at least every three years. In addition, the Changes 
to the Admissions and Occupancy Final Rule (March 29, 2000, 65 FR 
16692) specified that household composition must be recertified 
annually for tenants who select a flat rent or income-based rent.
    The matching program identifies tenants receiving inappropriate 
(excessive or insufficient) rental assistance resulting from under or 
over-reported household income. When excessive rental assistance 
amounts are identified, some tenants move out of assisted housing 
units; other tenants agree to repay excessive rental assistance. These 
actions may increase rental assistance or number of units available to 
serve other beneficiaries of HUD programs. When tenants continue to be 
eligible for rental assistance, but at a reduced level, the tenants 
will be required to increase their contributions toward rent.

III. Program Description

    This computer matching program, to the extent that it involves the 
use of SSA, IRS or SWICA data is fully described at 69 FR 11033. With 
respect to OPM data, the objectives of the matching program will be 
accomplished by comparing income data for individuals participating in 
HUD's assisted housing programs and subsidized multifamily housing 
programs with wage, unemployment, benefit, salary, and retirement data 
maintained by OPM in its systems of records known as the Central 
Personnel Data File (OPM/GOVT-1, General Personnel Records System), 
last published on April 27, 2000 (65 FR 24732); and the Annuity Roll 
Systems (OPM/Central-1, Civil Service Retirement and Insurance 
Records), last published as 64 FR 54930 (October 8, 1999), as amended 
on May 3, 2000 (65 FR 25775). Specifically, HUD will compare the OPM 
income data to tenant-reported income data included in HUD's systems of 
records known as the Tenant Assistance and Contract Verification Data 
(HUD/H-11) and the Public and Indian Housing Information Center (HUD/
PIH-4). The notices for these systems were published at 65 FR 52777 and 
67 FR 20986, respectively. The tenant income comparisons identify, 
based on criteria established by HUD, tenants whose incomes require 
further verification to determine if the tenants received appropriate 
levels of rental assistance.

A. Income Verification

    Any match (i.e., a ``hit'') will be further reviewed by HUD, the 
POA, or the HUD Office of Inspector General (OIG) to determine whether 
the income reported by tenants to the POA is correct and complies with 
HUD and POA requirements. Specifically, current or prior wage 
information and other data will be sought directly from employers.

B. Administrative or Legal Actions

    Regarding all the matching described in this notice, HUD 
anticipates that POAs will take appropriate action in consultation with 
tenants to: (1) Resolve income disparities between tenant-reported and 
independent income source data, and (2) use correct income amounts in 
determining housing rental assistance.
    POAs must compute the rent in full compliance with all applicable 
occupancy regulations. POAs must ensure that they use the correct 
income and correctly compute the rent.
    The POAs may not suspend, terminate, reduce, or make a final denial 
of any housing assistance to any tenant as the result of information 
produced by this matching program until: (a) The tenant has received 
notice from the POA of its findings and informing the tenant of the 
opportunity to contest such findings and (b) either the notice period 
provided in applicable regulations of the program, or 30 days, 
whichever is later, has expired. In most cases, POAs will resolve 
income discrepancies in consultation with tenants.
    Additionally, serious violations, which POAs, HUD Program staff, or 
HUD OIG verify, should be referred for full investigation and 
appropriate civil and/or criminal proceedings.

IV. Records To Be Matched

    This computer matching program, to the extent that it involves the 
use of SSA, IRS or SWICA data is fully described at 69 FR 11033. With 
respect to OPM data, the match will involve tenant records obtained 
directly from POAs and subsidized multifamily projects included in HUD/
H-11, Tenant Assistance and Contract Verification Data and HUD/PIH-4, 
Public and Indian Housing Information Center Files (HUD/PIH-4). These 
records contain information about individuals who are participants in 
the federal low income and Section 8 housing assistance programs. The 
OPM will provide HUD with extract files from the OPM/GOVT-1 and OPM/
Central-1 systems. The notice for these systems was published at 65 FR 
24732 and 64 FR 54930, respectively. The disclosure from OPM/GOVT-1 
will be made in accordance with routine use ``hh'' and the disclosure 
from OMP/Central-1 will be made in accordance with routine uses ``s'' 
and ``ff.'' HUD will match the tenant records to these OPM records on 
current and retired federal employees to compare tenant reported 
income.
    The tenant records (one record for each family member) includes 
these data elements: (1) SSNs for each family member; (2) family 
control number to identify each tenant with a particular family; (3) 
Head of Household Indicator; (4) Last Name, First Name, Middle Initial, 
and Address for household; (5) Sex; (6) Birth Date; (7) Reported Income 
by source, description and amount; (8) Program Code; and (9) 
Recertification Date. For matched employees SSNs (i.e., ``hits''), HUD 
will extract the following information from OPM/GOVT-1: SSN, Date of 
Birth, Name, Sex, Work schedule, Annual Salary, Location Code, Standard 
Metropolitan Statistical Area, Submitting Office Number (SON), Agency 
Code, and File Date. HUD will extract the following information from 
OPM/Central-1: File ID, SSN, Date of Birth, Sex, Last name, Annualized 
Salary, Annuity Commence Date, Pay Status, OPM Claim Number, Health 
Benefit Enrollment Code, Date of Death, Zip Code, Contact Address, and 
``As of'' Date of File. In addition, HUD will use the SON Master File 
to obtain the address of the agencies so that employer verification 
letters can be sent to such agencies. This information includes: SON, 
Agency Code and sub-element,

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SON name and address, zip code, and File Date.

V. Period of the Match

    The computer matching program will be conducted according to 
agreements between HUD and the SSA, IRS, OPM, and SWICA. The computer 
matching agreements for the planned matches will terminate either when 
the purpose of the computer matching program is accomplished, or 18 
months from the date the agreement is signed, whichever comes first.
    The agreements may be extended for one 12-month period, with the 
mutual agreement of all involved parties, if the following conditions 
are met:
    (1) Within 3 months of the expiration date, all Data Integrity 
Boards review the agreement, find that the program will be conducted 
without change, and find a continued favorable examination of benefit/
cost results; and
    (2) All parties certify that the program has been conducted in 
compliance with the agreement. The agreement may be terminated, prior 
to accomplishment of the computer matching purpose or 18 months from 
the date the agreement is signed (whichever comes first), by the mutual 
agreement of all involved parties within 30 days of written notice.

    Dated: October 6, 2004.
Carolyn Cockrell,
Acting Chief Technology Officer.
[FR Doc. E4-2806 Filed 10-22-04; 8:45 am]
BILLING CODE 4210-27-P