[Federal Register Volume 69, Number 228 (Monday, November 29, 2004)]
[Notices]
[Pages 69383-69385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E4-3343]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4922-N-05]


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 HUD and the 
Department of Health and Human Services (HHS).

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SUMMARY: Pursuant to the Computer Matching and Privacy Protection Act 
of 1988, as amended, HUD is providing notice of a matching program 
involving comparisons of information provided by applicants or 
participants in any HUD rental housing assistance program authorized 
under the following statutes and independent sources of income 
information available through the National Directory of New Hires 
(NDNH) maintained by HHS:
    i. The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
    ii. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
    iii. Section 221(d)(3), 221(d)(5), or 236 of the National Housing 
Act (12 U.S.C. 17151(d) and 1715z-1);
    iv. Section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013); or
    v. Section 101 of the Housing and Urban Development Act of 1965 (12 
U.S.C. 1701s).
    The matching program will be carried out only to the extent 
necessary to: (1) Verify the employment and income of individuals 
participating in the above identified programs to correctly determine 
the amount of their rent and assistance, and (2) after removal of 
personal identifiers, to conduct analyses of the employment and income 
reporting of individuals participating in HUD's rental housing 
assistance programs. HUD will make the results of the computer match 
available to public housing agencies (PHAs) administering HUD rental 
assistance programs to enable them to verify employment and income and 
correctly determine the rent and assistance levels for individuals 
participating in those programs This information also may be disclosed 
to the HUD Inspector General (HUD/IG), and the Attorney General in 
connection with the administration of the above named programs. 
Further, based on (1) an evaluation of the costs and benefits of 
disclosures made to PHAs, and (2) the adequacy of measures used to 
safeguard the security and confidentiality of information so disclosed, 
HUD may expand the use of this computer matching program to disclose 
employment and income information of tenants to private housing owners, 
management agents, and contract administrators that administer HUD 
rental assistance programs under agreements with HUD. HUD and its third 
party administrators will use this matching authority to reduce or 
eliminate improper assistance payments in the housing programs listed 
above.

DATES: Effective Date: Computer matching is expected to begin on 
December 29, 2004 unless comments are received which result in a 
contrary determination, or 40 days from the date a computer matching 
agreement is signed, whichever is later.
    Comments Due Date: December 29, 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 7:30 a.m. and 5:30 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 20410-3000, 
telephone number (202) 708-2374. A telecommunications device for 
hearing- and speech-impaired individuals (TTY) is available at 800-877-
8339 (Federal Information Relay Service). For program information: De 
W. Ritchie, Senior Advisor, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4228, Washington, DC 20410-
5000, telephone number (202) 708-0614 ext. 2481.

SUPPLEMENTARY INFORMATION: The Computer Matching and Privacy Protection 
Act (CMPPA) of 1988, an amendment to the Privacy Act of 1974 (5 U.S.C. 
Sec.  552a), OMB's guidance on this statute entitled ``Final Guidance 
Interpreting the Provisions of Public Law 100-503,'' 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 accordance 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

[[Page 69384]]

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 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 housing assistance to disclose to HUD their social 
security numbers (SSNs) as a condition of initial or continuing 
eligibility for participation in the programs.
    Section 217 of the Consolidated Appropriations Act of 2004 (Pub. L. 
108-199) authorizes HUD to provide to HHS information on persons 
participating in any programs authorized by:
    (i) The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
    (ii) Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
    (iii) Section 221(d)(3), 221(d)(5) or 236 of the National Housing 
Act (12 U.S.C. 17151(d) and 1715z-1);
    (iv) Section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013); or
    (v) Section 101 of the Housing and Urban Development Act of 1965 
(12 U.S.C. 1701s).
    HHS shall then compare this information provided by HUD with data 
contained in the National Directory of New Hires and report the results 
of the data match to HUD. The Act gives HUD the authority to disclose 
this information to PHAs, the HUD/IG, and the Attorney General for the 
purpose of verifying the employment and income of individuals receiving 
benefits in the above programs. Further, based on (1) an evaluation of 
the costs and benefits of disclosures made to PHAs, and (2) the 
adequacy of measures used to safeguard the security and confidentiality 
of information so disclosed, HUD may expand the use of the computer 
matching program to disclose employment and income information of 
participating tenants to private owners, management agents, and 
contract administrators that administer HUD rental assistance programs 
under agreements with HUD. HUD shall not seek, use or disclose 
information relating to an individual without the prior written consent 
of that individual, and HUD has the authority to require consent as a 
condition of participating in these programs.
    HHS's disclosure of data from the National Directory of New Hires 
is authorized by Section 217 of the Consolidated Appropriations Act of 
2004. The disclosures from the HHS system of records, ``Location and 
Collection System of Records,'' No. 09-90-0074, will be made pursuant 
to routine use (17) identified in the Federal Register on June 3, 2004 
(69 FR 31399). This routine use authorizes HHS to ``disclose to the 
Department of Housing and Urban Development information in the NDNH 
portion of this system for purposes of verifying employment and income 
of individuals participating in specified programs and, after removal 
of personal identifiers, to conduct analyses of the employment and 
income reporting of these individuals.''

II. Objectives To Be Met by the Matching Program

    HUD's primary objective in implementing the computer matching 
program is to verify the employment and income of individuals 
participating in the housing programs identified in paragraph I above 
to determine the appropriate level of rental assistance, and to deter 
and correct abuse in rental housing assistance programs. In meeting 
these objectives HUD also is carrying out a responsibility under 42 
U.S.C. Sec.  1437f(K) to ensure that income data provided to PHAs by 
household members is complete and accurate. HUD's various rental 
housing assistance programs require that applicants meet certain income 
and other criteria to be eligible for rental assistance. In addition, 
tenants generally are required to report and recertify the amounts and 
sources of their income at least annually. However, under the QHWRA of 
1998, PHAs operating Public Housing programs 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.
    Tribes and TDHEs set admission and eligibility requirements 
pursuant to the requirements contained in the Native American Housing 
Assistance and Self-Determination Act of 1996. They are not required to 
provide tenant data to the Department. Therefore, their participation 
in the computer match program is discretionary.

III. Program Description

    In this computer matching program, tenant-provided information 
included in HUD's automated systems of records known as Tenant Housing 
Assistance and Contract Verification Data (HUD/H-11) and Public and 
Indian Housing Information Center (HUD/PIH-4) will be compared to data 
from the NDNH database. The notices for these systems were published at 
65 FR 52777 and 67 FR 20986 respectively. HUD will disclose to HHS only 
tenant personal identifiers, i.e., full name, Social Security Number, 
and date of birth. HHS will match the HUD-provided personal identifiers 
to personal identifiers included in their systems of records known as 
``Location and Collection System of Records,'' No. 09-90-0074. HHS will 
provide income data to HUD only for individuals with matching personal 
identifiers.

A. Income Verification

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

B. Administrative or Legal Actions

    Regarding the matching described in this notice, HUD anticipates 
that program administrators 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.
    Program administrators must compute the rent in full compliance 
with all applicable occupancy regulations. Program administrators must 
ensure that they use the correct income and correctly compute the rent.
    The program administrator 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 program administrators 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, program administrators will resolve income 
discrepancies in consultation with tenants.
    Additionally, serious violations, which program administrators, HUD 
Program staff, or HUD/IG verify, should be referred for full 
investigation and

[[Page 69385]]

appropriate civil and/or criminal proceedings.

IV. Records To Be Matched

    HHS will conduct the matching of tenant SSNs and additional 
identifiers (such as surnames and dates of birth) to tenant data that 
HUD supplies from its Tenant Housing Assistance and Contract 
Verification Data (HUD/H-11) and Public and Indian Housing Information 
Center (HUD/PIH-4) Program administrators utilize the Form-50058 module 
within the PIC system and the Form 50059 module within the TRACS to 
provide HUD with the tenant data.
    HHS will match the tenant records included in HUD/H-11 and HUD/PIH-
4 to NDNH records contained in HHS's ``Location and Collection System 
of Records,'' No. 09-90-0074. HUD will place matching data into its 
system of records known as the Tenant Eligibility Verification Files 
(HUD/REAC-1).
    The tenant records (one record for each family member) include 
these data elements: full name, Social Security Number, and date of 
birth.

V. Period of the Match

    The computer matching program will be conducted according to 
agreements between HUD and HHS. The computer matching agreement for the 
planned match 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: November 10, 2004.
Carolyn H. Cockrell,
Acting Chief Technology Officer.
 [FR Doc. E4-3343 Filed 11-26-04; 8:45 am]
BILLING CODE 4210-72-P