[Federal Register Volume 71, Number 152 (Tuesday, August 8, 2006)]
[Notices]
[Pages 45066-45068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-12802]



[[Page 45066]]

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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No.FR-4922-N-19]


Privacy Act of 1974; Amendment to an existing System of Records, 
Enterprise Income Verification, HUD/PIH-5

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification of an amendment to an existing System of Records, 
Enterprise Income Verification (EIV), HUD/PIH-5.

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

SUMMARY: HUD is amending HUD/PIH-5 to reflect changes in the following 
section: Categories of Individuals Covered by the System, Categories of 
Records in the System, Authority for Maintenance of the System, Purpose 
of the System and the Routine Uses. These sections are revised to 
reflect the present status of the information contained in the system. 
A more detailed description of the present system is contained in the 
Supplemental Information section.

DATES: Effective Date: This proposal shall become effective without 
further notice September 7, 2006 unless comments are received during or 
before this period which would result in a contrary determination.
    Comments Due Date: September 7, 2006.

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, for the Office of Public and Indian 
Housing, contact Nicole Faison, Director of Public Housing and EIV 
Program Office Project Manager, telephone number (202) 708-0744. For 
the Office of Housing, contact Gail Williamson, Director of the Housing 
Assistance Policy Division, telephone number (202) 708-3000 extension 
2473. [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: Currently supporting public housing agencies 
(PHAs) that administer public housing and Section 8 tenant-based rental 
assistance programs, this system of records is being made available to 
private owners and management agents (O/As) who administer rental 
assistance programs for the Office of Housing (Housing) and contract 
administrators (CAs) under contract with HUD. EIV will contain income 
data for public housing, Section 8, and multifamily housing program 
participants, enabling program administrators to verify participant-
reported income and identify households that may have under reported 
their household's annual income.
    HUD developed the EIV 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 will contain personal identifying information from HUD's Public 
and Indian Housing Information Center (PIC) and Tenant Rental 
Assistance Certification System (TRACS), such as Head of Households and 
household members name, date of birth and Social Security Number (SSN), 
unit address, program information, and household income details as 
reported by the participant to the program administrator. These 
personal identifying data are extracted from PIC and TRACS 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, program administrators such 
as PHAs and O/As, and CAs under contract with HUD; thus, the data is 
protected accordingly.
    Vulnerabilities and corresponding security measures include: (1) 
only persons with Web Access Subsystem (WASS) User IDs and passwords 
may access EIV; (2) access to EIV is controlled using EIV's security 
module, which controls a user's access to particular modules based on 
the user's role and security access level; (3) User IDs are used to 
identify access to sensitive data by users; (4) data corruption/
destruction-PHA, O/A and CA 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: O/As enter management, building, unit, and family 
information into PIC and TRACS. Family information includes the 
families' names, SSNs, and dates of birth. When a PHA or O/A submits 
family data to PIC or TRACS, the EIV system will validate each 
household member's identity. HUD will only transmit to the Department 
of Health and Human Services (HHS) for computer matching those tenant 
personal identifiers (i.e., full name, SSN, and date of birth) that 
have been validated by the Social Security Administration (SSA). If a 
household member's identity cannot be validated, EIV will (1) flag the 
household member record; (2) provide an error message to the PHA or O/
A, informing the PHA or O/A to verify the household member's SSN, name, 
and/or date of birth; and (3) request the PHA or O/A to submit a 
corrected record (Form HUD-50058 or Form HUD-50059) into PIC or TRACS. 
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.
    EIV will receive (1) new hires (W-4), wage, and unemployment 
insurance claim data from HHS' National Directory of New Hires (NDNH) 
database, (2) wage and unemployment insurance claim data from State 
Wage Information Collection Agencies (SWICAs), and (3) Social Security 
(SS) and Supplemental Security Income (SSI) benefits data from the 
Social Security Administration (SSA). This will allow PHAs and O/As to 
verify the income of tenants at the time of mandatory annual and/or 
interim reexaminations.
    Pursuant to the Privacy Act of 1974 (5 U.S.C. 552a), as amended, 
notice is given that HUD proposes to amend an existing Privacy System 
of Records,

[[Page 45067]]

Enterprise Income Verification, HUD/PIH-5.
    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 Records About Individuals,'' July 25, 1994 (59 FR 37914).
    Accordingly, this notice amends HUD/PIH-5 system of records for the 
Office of Housing's Multifamily Housing Program administrators and 
accompanying routine uses to be submitted and accessed 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: August 1, 2006.
Lisa Schlosser,
Chief Information Officer.
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 O/As and State agencies and PHAs acting as CAs.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records consist of unit address (subsidized property address), 
family composition, and income data obtained from PHAs and O/As. The 
system of records contains--identification information such as names, 
dates of birth and SSNs for individuals; addresses; financial data such 
as tenant-reported income; data obtained from SWICAs on wages and 
unemployment claim information; data obtained from SSA on SS and SSI 
benefit information; data obtained from NDNH on new hire, wages and 
unemployment claim information; annual income discrepancies as a result 
of the comparison of tenant reported income to actual income as 
reported by third party sources such as SWICAs and Federal agencies.

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 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 NDNH 
database and disclose this information to PHAs for the purpose of 
verifying employment and income of rental housing program participants. 
HUD may disclose NDNH data to a private owner, management agent, and 
contract administrator under contract with HUD 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. Disclosure of NDNH data to 
O/As and CAs is only as needed for verifying the employment and income 
of multifamily housing program participants. The Housing and Community 
Development Act of 1987 authorizes HUD to require applicants for and 
participants in HUD-administered rental housing assistance programs to 
disclose to HUD their SSNs as a condition of initial or continued 
eligibility for participation in these HUD programs. The Omnibus Budget 
Reconciliation Act of 1993 (Budget Reconciliation Act) authorizes HUD 
to request from SSA 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 O/As 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 receive 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 O/As 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 SWICAs, NDNH, and SSA, (e) 
evaluating the effectiveness of income discrepancy resolution actions 
taken by O/As and 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 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., NDNH, SWICAs, SSA, etc.). Records in TRACS, 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

[[Page 45068]]

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;
    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 and O/As--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 PHAs, O/As, and CAs--to identify and resolve discrepancies in 
tenant data; and
    5. 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, SSN--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, PHAs', and O/A' access via the Internet to: 
(1) obtain SS and SSI 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 SSN 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 dates of birth and SSNs. 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 MANAGERS AND ADDRESSES:
    David Sandler, PIH Project Manager of the EIV system, U.S. 
Department of Housing and Urban Development, 550 12th Street SW., First 
Floor--Desk 1304, Washington, DC 20410. Lanier Hylton, Housing Project 
Manager of the EIV system, U.S. Department of Housing and Urban 
Development, 451 7th Street, SW., Room 6140, 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 Director of the Office of 
Public and Indian Housing, Office of Public Housing and Voucher 
Programs or the Director of the Office of Housing, Office of Housing 
Assistance Contract Administration Oversight, U.S. Department of 
Housing and Urban Development, 451 7th Street SW., Washington, DC 
20410. Written requests must include the full name, SSN, 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 and Housing may receive data from HUD field office staff, 
Federal Government agencies, State and local agencies, private data 
sources, owners and management agents, PHAs, and contract 
administrators. PHAs and O/As routinely collect personal and income 
data from participants in and applicants for HUD's public and assisted 
housing programs. The data collected by PHAs and O/As is entered into 
the PIC and TRACS system, respectively, on-line via the system itself, 
via PHA or O/A-owned software, or via HUD's Family Reporting Software 
(FRS). Data from PIC and TRACS is imported into EIV and used to create 
request files for computer matching programs.

EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:
    None.
 [FR Doc. E6-12802 Filed 8-7-06; 8:45 am]
BILLING CODE 4210-67-P