[Federal Register Volume 71, Number 193 (Thursday, October 5, 2006)]
[Notices]
[Pages 58871-58873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16435]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4922-N-23]


Privacy Act of 1974; Notice of a Computer Matching Program 
between HUD and the Social Security Administration: 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 Social Security 
Administration (SSA).

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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 
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 (QHWRA) of 1998. 
The program provides for the verification of the matching results and 
the initiation of appropriate administrative or legal actions, 
primarily through public housing agencies (PHAs) and owners and agents 
(all collectively referred to as POAs). Indian tribes and tribally 
designated housing entities (TDHEs) are not a mandatory component of 
the computer matching program. Participation by Indian tribes and TDHEs 
is discretionary; however, they may receive and use social security 
(SS) and supplemental security income (SSI) matching information 
provided by HUD.
    This notice provides an overview of computer matching for HUD's 
rental assistance programs. Specifically, the notice describes HUD's 
program for computer matching of its tenant data to SSA's SS and SSI 
income benefits data.

DATES: Effective Date: Computer matching is expected to begin 30 days 
after publication of this notice in the Federal Register, 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 6, 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. Comments sent by facsimile 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, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 4176, Washington, DC 20410, 
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 all other 
information: Myra Newbill, Project Manager, Tenant Assessment Sub-
System, Real Estate Assessment Center, Department of Housing and Urban 
Development, 550 12th Street, SW., Suite 100, Washington, DC 20410, 
telephone number (202) 475-8988.

SUPPLEMENTARY INFORMATION: This notice supersedes a similar notice 
published in the Federal Register on March 9, 2004 (69 FR 11033). Since 
that time, the matching program has continued to be implemented on a 
large scale. In previous years, the computer matching was carried out 
for random samples of households receiving rental assistance or for 
selected POAs. During calendar year 1999, HUD used the matching program 
for a large-scale computer matching project involving over 2 million 
households. HUD announced plans for the large-scale implementation of 
the program on September 14, 1999 (64 FR 49817). 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 of 
Homeland Security and Governmental Affairs of the Senate, and

[[Page 58872]]

OMB's Office of Information and Regulatory Affairs.

I. Authority

    This matching program is being conducted pursuant to 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 QHWRA Act 
of 1998 (42 U.S.C. 1437a(f)). The Stewart B. McKinney Homeless 
Assistance Amendments Act of 1988 authorizes HUD and PHAs (but not 
private owners/agents for subsidized multifamily projects) to request 
wage and claim information from State Wage Information Collection 
Agencies (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 PHA to request wage and claim information from the SWICAs. 
The Housing and Community Development Act of 1987 authorizes HUD to 
require applicants and participants 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 QHWRA of 1998, section 508(d), 42 
U.S.C. 1437a(f) authorizes the Secretary of HUD to require disclosure 
by the tenant to the PHA of income information received by the tenant 
from HUD as part of the 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.

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 rental 
assistance housing programs. In meeting these objectives, HUD also is 
carrying out its 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, PHA must offer tenants the 
option to pay a flat rent, or an income-based rent annually. 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 units making more units available to 
assist eligible families, while other tenants agree to repay excessive 
rental assistance, which increases subsidy payments to HUD. 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. 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 is discretionary.

III. Program Description

    In this computer matching program, tenant-provided information 
included in HUD's automated files will be compared to data from the SSA 
on a quarterly basis. HUD will request SSA matching of SS and SSI 
benefits information monthly for residents due to be recertified in 
four months and each three months thereafter. New tenants will be 
processed in the next monthly SSA cycle. No tenant records will be 
forwarded to HHS for matching against NDNH until SSA has verified their 
ID. Indian Tribes and Tribally Designated Housing Entities may receive 
and use SS and SSI matching information provided by HUD. HUD may also 
request SWICA matching to supplement SSA matching and income 
verification. PHAs, but not owners and agents, may also request SWICA 
matching. For matching purposes, HUD will disclose to SSA and SWICA 
only tenant personal identifiers such as SSNs, surnames, and dates of 
birth. The SSA and SWICAs will conduct the matching of the HUD-provided 
personal identifiers to personal identifiers included in their 
automated files. Those agencies will provide income data to HUD only 
for those individuals with matching personal identifiers. HUD will then 
compare income data obtained from the sources cited above to tenant-
reported income data included in HUD's system of records known as the 
Tenant Eligibility Verification Files (HUD/REAC-1) published on August 
30, 2000 (65 FR 52777). HUD/REAC-1 receives tenant data from the Tenant 
Housing Assistance and Contract Verification Data (HUD/H-11), published 
on March 13, 1997 (62 FR 11909). The tenant income comparisons identify 
tenants whose incomes require further verification to determine if the 
tenants received appropriate levels of rental assistance.

A. Income Verification

    HUD will normally request that POAs verify matching results as 
described below. However, under certain circumstances, HUD Program 
staff or the HUD Office of Inspector General (OIG) may verify tenant 
incomes with independent income sources. For example, such 
circumstances may include: (a) When HUD declares a PHA in breach of an 
annual contributions contract; or (b) when tenants fail to disclose SSA 
data, or tenants commit other serious violations, and HUD's analysis of 
the data could support legal actions.
    (1) Verification of SS and SSI Benefits Data. SSA's SS and SSI 
benefits data may be disclosed to POAs. (The Foster Care Independence 
Act of 1999; Public Law 106-169 provided a new Title VIII of the Social 
Security Act, which authorized special benefits for certain World War 
II veterans.) Therefore, after receiving this data from the SSA and 
comparing it to tenant-reported income, HUD will disclose SS and SSI 
benefits data to POAs. These disclosures will include information on 
monthly SS and SSI benefits data and, where applicable, income 
discrepancy information between tenant-reported data, as reported by 
POAs, and the income amounts provided by the SSA. POAs will use this 
information in periodic

[[Page 58873]]

verifications of tenant incomes that are required to determine program 
eligibility and rental assistance amounts. HUD has implemented secure 
electronic facilities for transmitting SS and SSI benefits data to all 
POAs.
    (2) Verification of SWICA Data. HUD may disclose matching results 
for SWICAs wage and unemployment claim data directly to PHAs. The 
comparison of SWICA data and the tenant-reported data will reveal 
whether income verification is necessary. If tenant contests the 
accuracy of the SWICA reported information, the PHA must then obtain 
wage information directly from the tenant's employers, including 
information from prior years, when appropriate. The SWICA unemployment 
claim data must be verified with the tenant. Verification of the income 
data with employers would only be required when the tenant disputes the 
SWICA data.

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. POAs may not suspend, 
terminate, reduce, or make a final denial of any rental 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 has been informed 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 the HUD OIG verify, should be referred for 
full investigation and appropriate civil and/or criminal proceedings.

IV. Records To Be Matched

    SSA 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 system of records known as the Tenant Housing 
Assistance and Contract Verification Data (HUD/H-11). Within HUD, this 
system of records includes two automated systems known as the 
Multifamily Tenant Characteristics System (a system for programs under 
the Office of the Assistant Secretary for Public and Indian Housing) 
and the Tenant Rental Assistance Certification System (a system for 
programs under the Office of the Assistant Secretary for Housing--
Federal Housing Commissioner). POAs provide HUD with the tenant data 
that is included in HUD/H-11. The SSA will match the HUD/H-11 records 
to the SSA's Earnings Recording and Self-Employment Income System (HHS/
SSA/OSR, 09-60-0059) (Earnings Record); Master Beneficiary Record (HHS/
SSA/OSR, 09-60-0090) (MBR); and Supplemental Security Income Record 
(HHS/SSA/OSR, 09-60-0103) (SSR). HUD will place matching data into its 
system of records known as the Tenant Eligibility Verification Files 
(HUD/REAC-1). The HUD/REAC-1 records are specifically exempt from 
certain provisions of the Privacy Act, as described in notices 
published on February 28, 1994 (59 FR 9406) and March 30, 1994 (59 FR 
14869). HUD may also coordinate SWICA income computer matches for its 
rental assistance programs using tenant SSNs and surnames. SWICAs will 
match tenant records to machine-readable files of quarterly wage data 
and unemployment insurance benefit data. Results from this matching 
will be provided to HUD or PHAs, which will then determine whether 
tenants have unreported or underreported income. The matching will be 
done in accordance with a written agreement between the SWICA and HUD. 
Tenant data may be matched to the SSA's Master Files of Social Security 
Number Holders (HHS/SSA/OSR, 09-60-0058) and Death Master Files for the 
purpose of validating SSNs contained in tenant records. These records 
will also be used to validate SSNs for all applicants, tenants, and 
household members who are six (6) years of age and over to identify 
noncompliance with program eligibility requirements. HUD will compare 
tenant SSNs provided by POAs to reveal duplicate SSNs and potential 
duplicate housing assistance.

V. Period of the Match

    The computer matching program will be conducted according to 
agreements between HUD and the SSA 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 three 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: September 29, 2006.
Lisa Schlosser,
Chief Information Officer.
 [FR Doc. E6-16435 Filed 10-4-06; 8:45 am]
BILLING CODE 4210-67-P