[Federal Register Volume 72, Number 172 (Thursday, September 6, 2007)]
[Notices]
[Pages 51239-51241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17589]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5130-N-10]


Privacy Act of 1974; Supplemental Information and Technical 
Correction to Notice of Computer Matching Program Between the 
Department of Housing and Urban Development (HUD) and the Department of 
Health and Human Services (HHS)--Matching Tenant Data in Assisted 
Housing Programs

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice of Supplementary Information and Technical Corrections.

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SUMMARY: This notice provides Supplementary Information and Technical 
Corrections to the Computer Matching Notice published in the Federal 
Register on August 8, 2006. This information changes the anticipated 
effective date of the computer matching program; removes the term 
``applicants'' cited in the prior notice since disclosure of applicant 
information is not authorized; provides date and pertinent information 
about HUD's statutorily required evaluation document and its Enterprise 
Income Verification (EIV) system; provides citations for HUD 
requirements described in the prior notice; and, clarifies the system 
of records in the program description and records to be matched. The 
authority, objectives, and the period of the match under the existing 
HUD and HHS computer matching program remain unchanged. A more detailed 
description about the current matching program is contained in the 
Supplemental Information section.

DATES: Effective Date: The effective date of the matching program shall 
be October 9, 2007, providing no comments are received which would 
result in a contrary determination or 40 days after notice of the 
matching program is provided to the Office of Management and Budget 
(OMB) and Congress, whichever is later.
    Comments Due Date: October 9, 2007.

FOR FURTHER INFORMATION CONTACT: The Departmental Privacy Act Officer, 
Department of Housing and Urban Development, 451 Seventh Street, SW, 
Room 4178, 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: Gail Williamson, Office of 
Housing, Director of the Housing Assistance Policy Division, Department 
of Housing and Urban Development, 451 Seventh Street, SW, Room 6138, 
Washington, DC 20410, telephone number (202) 708-3000, ext. 2473.

SUPPLEMENTARY INFORMATION: The matching program will be carried out 
only to the extent necessary to: (1) Verify the employment and income 
of individuals participating in the programs identified below to 
correctly determine the amount of their rent and level of rental 
assistance; and (2) after removal of personal identifiers, to conduct 
analyses of the employment and income reporting of individuals 
participating in HUD's rental assistance programs. Currently, HUD makes 
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 is also being disclosed to the HUD Inspector General

[[Page 51240]]

(HUD/IG), and the Attorney General in connection with the 
administration of the programs identified below.
    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 will 
disclose employment and income information of tenants to private 
housing owners and management agents (O/As) and contract administrators 
(CAs) that administer HUD rental assistance programs under agreements 
with HUD. The evaluation was conducted by HUD and signed by HUD and 
Office of Child Support Enforcement (OCSE) authorized officials on May 
11, 2007. HUD and its third party administrators will use this matching 
authority to reduce or eliminate improper assistance payments in the 
housing 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. 1715l 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 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,'' and OMB Circular No. A-130 require 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 Oversight 
and Government Reform of the House of Representatives, the Committee on 
Homeland Security and Governmental Affairs of the United States Senate, 
and OMB's Office of Information and Regulatory Affairs.

I. Authority

    This matching program is being conducted pursuant to section 
453(j)(7) of the Social Security Act; 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 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 continued eligibility for 
participation in the programs. Subsection 453(j) of the Social Security 
Act, as amended by 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. 1715ld 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 (NDNH) and report the 
results of the data match to HUD. The Act gives HUD the authority to 
disclose this information to PHAs, O/As, CAs under contract with HUD, 
the HUD/IG, and the Attorney General for the purpose of verifying the 
employment and income of individuals receiving benefits in the above 
programs. HUD shall not seek, use, or disclose information relating to 
an individual without the prior written consent of the individual, and 
HUD has the authority to require consent as a condition of 
participating in these programs.
    HHS' disclosure of data from the NDNH is authorized by subsection 
453(j) of the Social Security Act, as amended 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 HUD 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 multifamily housing programs identified in paragraph I 
above to determine the appropriate level of rental assistance, and to 
deter and correct abuse in rental assistance programs. In meeting these 
objectives, HUD is also carrying out a responsibility under 42 U.S.C. 
Sec. 1437f(k) to ensure that income data provided to O/As and CAs by 
household members is complete and accurate. HUD's various rental 
assistance programs require that applicants meet certain income and 
other criteria to be eligible for rental assistance. In addition, 
tenants participating in multifamily housing programs generally are 
required to report and recertify the amounts and sources of their 
income at least annually.

III. Program Description

    In this computer matching program, records from HUD's system of 
records, known as the EIV System, published at 71 FR 45066 on August 8, 
2006, will be compared to OCSE's database NDNH. The NDNH contains new 
hire, quarterly wage and unemployment insurance information and is 
maintained in OCSE's system of records, ``Location and Collection 
System'', No. 9-90-0074, last published at 70 FR 21200, April 25, 2005. 
HUD will only transmit to HHS for computer matching those tenant 
personal identifies (i.e., full name, SSN, and date of birth) that have 
been validated by the Social Security Administration (SSA). 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. HUD will 
place matching data into EIV, which

[[Page 51241]]

will receive: (1) New hires (W-4), wage, and unemployment insurance 
claim data from HHS' NDNH database; and (2) Social Security (SS) and 
Supplemental Security Income (SSI) benefits data from the SSA. This 
will allow PHAs and O/As to verify the income of tenants at the time of 
mandatory annual and/or interim recertifications.

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 discrepancies between 
tenant-reported and independent income source data; and (2) use correct 
income amounts in determining rental assistance, in accordance with 
Chapter 5, Sections 3 and 4 of the Occupancy Requirements of Subsidized 
Multifamily Housing Programs, 4350.3 REV-1. 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 rental assistance to any tenant as a result of 
information produced by this matching program until: (a) The tenant has 
received notice from the program administrator 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 appropriate civil and/or criminal 
proceedings.

IV. Records To Be Matched

    HHS will match HUD-provided tenant SSNs and personal identifiers 
(such as surnames and dates of birth) in HUD's system of records known 
as EIV, amended August 8, 2006, 71 FR 45066 to NDNH records contained 
in its ``Location and Collection System of Records'', No. 09-90-0074. 
HUD will place the resulting matched data into its EIV system. The 
tenant records (one record for each family member) include these data 
elements: Full name, SSN, and date of birth. Routine uses of records 
maintained in the system, including categories of users and purposes of 
such uses are identified in Federal Register Notice Privacy Act of 
1974; Amendment to an Existing System of Records, Enterprise Income 
Verification, HUD/PIH 5 (71 FR 45066).

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.

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

    Dated: August 17, 2007.
Bajinder Paul,
Acting, Chief Information Officer.
 [FR Doc. E7-17589 Filed 9-5-07; 8:45 am]
BILLING CODE 4210-67-P