[Federal Register Volume 70, Number 138 (Wednesday, July 20, 2005)]
[Notices]
[Pages 41780-41782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3846]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4922-N-10]


Privacy Act of 1974; Establishment of a New System of Records

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification of the establishment of a new system of records.

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

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 HUD developed the Enterprise Income Verification (EIV) 
system, which, heretofore, was known as the Upfront Income Verification 
(UIV) system used by the Office of Public and Indian Housing (PIH). 
This system of records currently supports the administration of 
programs for families receiving housing assistance from HUD by Public 
Housing Agencies (PHAs) that administer HUD's public housing and 
Section 8 tenant-based rental assistance programs. EIV contains income 
data of Public Housing and Section 8 program participants. EIV also 
enables PHAs to verify participant-reported income and identifies 
households that may have under reported their household's annual 
income. Eventually, EIV will be made available to administrators 
(owners and management agents) of the Office of Housing's (Housing) 
rental assistance programs.
    HUD developed the UIV system to reduce subsidy payment errors as a 
result of tenant under reporting of income to ensure that limited 
federal resources serve as many eligible families as possible. EIV will 
facilitate more timely and accurate verification of tenant-reported 
income at the time of mandatory annual and interim reexamination of 
household income.
    EIV contains personal identifying information from HUD's Public and 
Indian Housing Information Center (PIC), such as Head of Households and 
household members name, date of birth and Social Security Number, unit 
address, PHA program information, and household income details as 
reported by the participant to the program administrator. These 
personal identifying data are extracted from PIC and imported into EIV. 
The system also contains household member(s) income details as reported 
by state and federal agencies. HUD obtains income details through 
computer matching programs.
    System Security Measures: The integrity and availability of data in 
EIV is important. Much of the data needs to be protected from 
unanticipated or unintentional modification. HUD restricts the use of 
this information to HUD approved officials and PHAs; thus, the data is 
protected accordingly. Eventually, this restriction will be extended to 
owners and management agents.
    Vulnerabilities and corresponding security measures include: (1) 
Only persons with PIC User Ids and passwords may access EIV; (2) Access 
to EIV is controlled using EIV's security module. This module controls 
a user's access to particular modules based on the user's role and 
security access level; (3) User IDs are utilized to identify access to 
sensitive data by users; (4) Data corruption/destruction--PHA users do 
not have write access to databases. HUD user's write access is limited 
to user administration by authorized personnel. This will eliminate the 
risk of data destruction or corruption.
    Data Quality: PHAs enter management, building, unit, and family 
information into PIC. Family information includes the families' names, 
social security numbers (SSNs), and dates of birth. When a PHA submits 
family data to PIC, the EIV system will validate each household 
member's identity. If a household member's identity cannot be verified, 
EIV will (1) flag the household member record; (2) provide an error 
message to the PHA, informing the PHA to verify the household member's 
SSN, name, and/or date of birth; and (3) request the PHA to submit a 
corrected record (HUD Form 50058) into PIC. EIV will remove the 
unverified household member record from computer matching request 
files.
    This household member identity verification feature was established 
to help HUD maintain data quality and integrity and to support one of 
its strategic objectives to prevent fraud and abuse. This identity 
verification feature will (1) help confirm that those families entitled 
to benefits receive benefits, (2) assist in limiting the duplication of 
benefits, and (3) help prevent the false application for benefits, 
thereby ensuring data quality. In addition, EIV will receive income 
data from State Wage Information Collection Agencies (SWICAs), federal 
agencies, and one or more private vendors. This will allow PHAs and, 
eventually, owners and management agents to verify the income of newly 
admitted applicants and tenants at the time of mandatory annual and/or 
interim reexaminations.

DATES: Effective Date: This proposal shall become effective without 
further notice in 30 calendar days (August 19, 2005) unless comments 
are received during or before this period which would result in a 
contrary determination.
    Comments Due Date: August 19, 2005.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, 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: Jeanette Smith, Departmental Privacy 
Act Officer, telephone number (202) 708-2374. Regarding records 
maintained in Washington, DC, contact: Nicole Faison, Rental Housing 
Integrity Improvement Project (RHIIP) Manager in the Office of Public 
and Indian Housing and EIV Program Office Project Manager, telephone 
number (202) 708-0744. [The above are not toll free numbers.] A 
telecommunications device for hearing and speech-impaired persons (TTY) 
is available at 1-800-877-8339 (Federal Information Relay Services). 
(This is a toll-free number).

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974 (5 
U.S.C. 552a), as amended, notice is given that HUD proposes to 
establish a new system of records identified as the Enterprise Income 
Verification (EIV) system.
    Title 5 U.S.C 552a(e)(4) and (11) provide that the public be 
afforded a 30-day period in which to comment on the new record system. 
The new system report was submitted to the Office of Management and 
Budget (OMB), the Senate Committee on Governmental Affairs and the 
House Committee on Government Reform pursuant to paragraph 4c of 
Appendix l to OMB Circular No. A-130, ``Federal Responsibilities for 
Maintaining

[[Page 41781]]

Records About Individuals,'' July 25, 1994 (59 FR 37914).
    Accordingly, this notice establishes a new system of records and 
accompanying routine uses to be submitted and accessed initially in the 
management of rental assistance housing programs by the Office of 
Public and Indian Housing and eventually in the management of rental 
assistance housing programs by the Office of Housing.

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

    Dated: July 12, 2005.
Edward J. Dorris,
Deputy Chief Information Officer for Business Technology and 
Modernization.
HUD/PIH-5

SYSTEM NAME:
    Enterprise Income Verification (EIV).

SYSTEM LOCATIONS:
    The files will be maintained at the following location: U. S. 
Department of Housing and Urban Development, 451 7th Street, SW., 
Washington, DC 20410. Lockheed Martin Corporation, located at 4701 
Forbes Blvd., Lanham, MD 20706, will monitor access of any encrypted 
files containing social security and rent information (subject to the 
provisions of 26 U.S.C. 6103).

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Families receiving rental housing assistance via programs 
administered by the Department of Housing and Urban Development, 
Tribally Designated Housing Entities participating in the Section 8 
program, PHAs and/or owners and management agents, and State agencies.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records consist of unit address (subsidized property address), 
family composition, and income data obtained from PHAs. The system of 
records contains--identification information such as names, dates of 
birth and social security numbers for individuals; addresses; financial 
data such as tenant-reported income; data obtained from State Wage 
Information Collection Agencies on wages and unemployment claim 
information; data obtained from the Social Security Administration 
(SSA) on Social Security (SS) and Supplemental Security Income (SSI) 
benefit information; and data obtained from the National Directory of 
New Hires (NDNH) on new hire, wages and unemployment claim information; 
and annual income discrepancies as a result of the comparison of tenant 
reported income to actual income as reported by third party sources 
(SWICAs, Federal agencies, and/or private vendors).

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Pursuant to the Stewart B. McKinney Homeless Assistance Amendments 
Act of 1988 and Section 303(i) of the Social Security Act, HUD and HUD-
funded PHAs may request wage and claim data from State Wage Information 
Collection Agencies (SWICAs) responsible for administering state 
unemployment laws. On October 1, 1994, Section 542(a)(1) of HUD's 1998 
Appropriation Act, eliminated a 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 PHAs. On January 23, 2004, Section 453(j) of the Social Security 
Act (42 U.S.C. 653(j)) was amended to allow HUD to obtain income 
information from the National Directory of New Hires (NDNH) and 
disclose this information to PHAs for the purpose of verifying 
employment and income of rental housing program participants. The 
Housing and Community Development Act of 1987 authorizes HUD to require 
applicants for and participants in (as well as members of their 
households six years of age and older) HUD administered rental housing 
assistance programs to disclose to HUD their social security numbers as 
a condition of initial or continuing eligibility for participation in 
these HUD programs. The Omnibus Budget Reconciliation Act of 1993 
(Budget Reconciliation Act) authorizes HUD to request from the Social 
Security Administration federal tax data as prescribed in section 
6103(l)(7) of title 26 of the United States Code (Internal Revenue 
Code).

PURPOSES:
    The primary purpose of EIV is to allow PHAs and, eventually, owners 
and management agents, to verify tenant reported income, identify 
unreported income sources and/or amounts received by program 
participants, and identify substantial annual income discrepancies 
amongst households that received HUD-provided rental assistance through 
programs administered by PIH and Housing. The first release of EIV was 
successfully implemented on August 16, 2004. EIV is a simple, Internet-
based integrated system, which enables PHA users, HUD personnel and, 
eventually, owners and management agents to access a common database of 
tenant information via their web browser. EIV will aid HUD and entities 
that administer HUD's assisted housing programs in: (a) Increasing the 
effective distribution of rental assistance to individuals that meet 
the requirements of federal rental assistance programs, (b) detecting 
abuses in assisted housing programs, (c) taking administrative or legal 
actions to resolve past and current abuses of assisted housing 
programs, (d) deterring abuses by verifying the income of tenants at 
the time of annual and interim reexaminations via the use of electronic 
income data received from State Wage Information Collection Agencies 
(SWICAs), National Directory of New Hires (NDNH), and the Social 
Security Administration, (e) evaluating the effectiveness of income 
discrepancy resolution actions taken by PHAs for some of HUD's rental 
assistance programs, and (f) reducing administrative burden of 
obtaining written or oral third party verification (when the tenant 
does not dispute information provided by EIV). EIV is a management 
information system that contains tools to help: (1) Improve the income 
verification process, (2) monitor incidents of potential tenant under 
reporting of household income (3) produce management reports, and (4) 
conduct risk assessments.
    The Enterprise Income Verification (EIV) system serves as a 
repository for automated information used when comparing family income 
data reported by recipients of federal rental assistance to income data 
received from external sources (e.g., SWICAs, SSA, etc.). Records in 
PIC and EIV 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:
    In addition to the uses cited in the section of this document 
titled ``Purposes'', other routine uses may include:
    1. To Federal, State, and local agencies (e.g., state agencies 
administering the state's unemployment compensation laws, state welfare 
and food stamp agencies, U.S Office of Personnel Management, U.S. 
Postal Service, U.S. Department of Defense, U.S. Department of Health 
and Human Services, and U.S. Social Security Administration)--to verify 
the accuracy and completeness of the data provided, to verify 
eligibility or continued eligibility in HUD's rental assistance 
programs, and to aid in the identification of tenant errors, fraud, and 
abuse in assisted housing programs through HUD's tenant income computer 
matching program;

[[Page 41782]]

    2. To individuals under contract to HUD or under contract to 
another agency with funds provided by HUD--for the preparation of 
studies and statistical reports directly related to the management of 
HUD's rental assistance programs, to support quality control for tenant 
eligibility efforts requiring a random sampling of tenant files to 
determine the extent of administrative errors in making rent 
calculations, eligibility determinations, etc., and for processing 
certifications/re-certifications;
    3. To PHAs--to verify the accuracy and completeness of tenant data 
used in determining eligibility and continued eligibility and the 
amount of housing assistance received;
    4. To private owners and management agents of assisted housing--to 
verify the accuracy and completeness of applicant and tenant data used 
in determining eligibility and continued eligibility and the amount of 
housing assistance received;
    5. To PHAs, owners and management agents, and contract 
administrators--to identify and resolve discrepancies in tenant data; 
and
    6. To researchers affiliated with academic institutions, with not-
for-profit organizations, or with Federal, State or local governments, 
or to policy researchers--without individual identifiers--name, 
address, Social Security Number--for the performance of research and 
statistical activities on housing and community development issues.

POLICIES FOR STORING, RETRIEVING, AND DISPOSING OF SYSTEM RECORDS 
STORAGE:
    Records are stored manually in family case files and electronically 
in office automation equipment. Records are stored on HUD computer 
servers for field office and PHAs', and eventually, owners' and 
management agents' access via the Internet to: (1) Obtain social 
security and supplemental security income data that are not subject to 
provisions of 26 U.S.C. 6103; (2) obtain wage and unemployment 
compensation data; and (3) obtain household income discrepancies 
reports. Software in EIV precludes the transfer of any data subject to 
26 U.S.C. 6103 to unencrypted media.

RETRIEVABILITY:
    Records may be retrieved by computer search of indices by the Head 
of Household's name, date of birth, and/or Social Security Number of an 
existing HUD program participant.

SAFEGUARDS:
    Records are maintained at the U.S. Department of Housing and Urban 
Development in Washington, DC with limited access to those persons 
whose official duties require the use of such records. Computer files 
and printed listings are maintained in locked cabinets. Printed 
listings include masked date of births and social security numbers. 
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 SSN, income, and personal identifying 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 6/2000).

RETENTION AND DISPOSAL:
    Computerized family records are maintained in a password-protected 
environment. If information is needed for evidentiary purposes, 
documentation will be referred to the HUD Office of Inspector General 
(OIG) in Washington, DC or other appropriate Federal, State or local 
agencies charged with the responsibility of investigating or 
prosecuting violators of Federal law. Documents referred to HUD's OIG 
will become part of OIG's Investigative Files. Records will be retained 
and disposed of in accordance with the General Records Schedule 
included in HUD Handbook 2228.2, appendix 14, item 25.

SYSTEM MANAGER AND ADDRESS:
    David Sandler, Project Manager of Enterprise Income Verification 
(EIV) system, U.S. Department of Housing and Urban Development, 550 
12th Street SW., First Floor--Desk 1304, Washington, DC 20410.

NOTIFICATION AND RECORD ACCESS PROCEDURES:
    Individuals seeking to determine whether this system of records 
contains information about them, or those seeking access to such 
records, should address inquiries to the Project Manager of the Rental 
Housing Integrity Improvement Project (RHIIP) in the Office of Public 
and Indian Housing and/or EIV Program Office Project Manager, U.S. 
Department of Housing and Urban Development, 451 7th Street SW., Room 
4204, Washington, DC 20410. Written requests must include the full 
name, Social Security Number, date of birth, current address, and 
telephone number of the individual making the request.

CONTESTING RECORD PROCEDURES:
    Procedures for the amendment or correction of records, and for 
applicants wanting to appeal initial agency determinations based on 
data in EIV, appear in 24 CFR part 16.

RECORD SOURCE CATEGORIES:
    PIH may receive data from HUD field office staff, Federal 
Government agencies, State and local agencies, private data sources, 
owners and management agents, and PHAs. PHAs routinely collect personal 
and income data from participants in and applicants for HUD's public 
and assisted housing programs. The data collected by PHAs is entered 
into the PIC system on-line via the system itself, via PHA-owned 
software, or via HUD's Family Reporting Software (FRS). Data from PIC 
is imported into EIV and used to create request files for computer 
matching programs.

EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. E5-3846 Filed 7-19-05; 8:45 am]
BILLING CODE 4210-72-P