[Federal Register Volume 73, Number 204 (Tuesday, October 21, 2008)]
[Notices]
[Pages 62523-62525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-24939]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5130-N-33]


Privacy Act; Notification of the Establishment of a New Systems 
of Records, Nonprofit Data Management System

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Establishment of a new Privacy Act System of Records, Nonprofit 
Data Management System.

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SUMMARY: The Department of Housing and Urban Development (HUD) proposes 
to establish a new record system to add to its inventory of systems of 
records subject to the Privacy Act of 1974 (5 U.S.C. 552a), as amended. 
The proposed new system of record is the Single Family Nonprofit Data 
Management System (NPDMS) developed by the Office of Single Family 
Housing. NPDMS will be used as an automated we-based tool used to 
manage the Nonprofit program activities. The application will be used 
to improve the application, recertification, and reporting process for 
organizations that participate in HUD Federal Housing Administration 
(FHA) Nonprofit Program activities and will be used to assist HUD staff 
with the daily administration of these programs.

DATES: Effective Date: This action shall be effective without further 
notice on November 20, 2008 unless comments are received that would 
result in a contrary determination.
    Comments Due Date: November 20, 2008.

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. Communications should refer to the above 
docket number and title. 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: Donna Robinson-Staton, Departmental 
Privacy Act Officer, Department of Housing and Urban Development, 451 
Seventh St., SW., Room 4178, Washington, DC 20410, Telephone Number 
(202) 402-8073. (This is not a toll-free number.) A telecommunication 
device for hearing- and speech-impaired individuals (TTY) is available 
at 1-800-877-8339 (Federal Information Relay Service).

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 as identified as the NPDMS.
    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 system of 
records, and require published notice of the existence and character of 
the system of records.
    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 1 to OMB Circular No. A-130, ``Federal Agency Responsibilities 
for Maintaining

[[Page 62524]]

Records About Individuals,'' July 25, 1994; 59 FR 37914.

    Authority: 5 U.S.C. 552a 88 Stat. 1896; 342 U.S.C. 3535(d).

    Dated: October 10, 2008.
Lisa Schlosser,
Chief Information Officer.
HUD/HS-60

System Name:
    Nonprofit Data Management System.

System Location:
    The system is located on the UAI (contractor's server). UAI is 
located at 307 Wynn Drive, NW., Huntsville, Alabama 35805-1960.

Categories of Individuals Covered by the System:
    The system maintains information on Government Entities, Nonprofit 
Organizations, Nonprofit board members and key staff and homebuyers who 
purchase HUD (REO) homes from Nonprofits and Government Entities 
participating in the program.

Categories of Records in the System:
    Business Documentation (IRS Letters for Determination of Nonprofit 
Status, Articles of Organization; Mortgage Notes, W-9/SAMS-1111), 
Property Report Documentation ( HUD-9548 Sales Contract, HUD-1 
Settlement Statement-Purchase, HUD-1 Settlement Statement-Resale, and 
Median Income Certification) and limited information about the 
homebuyers; such as, their name, and address, SSN and race/ethnicity 
characteristics.

Authority for Maintenance of the System:
    Housing and Urban Development 24 CFR part 200.194 (Part 200--
Introduction to FHA Programs)--Placement of Nonprofit Organization on 
Nonprofit Organization Roster.

Purposes:
    NPDMS is an automated web-based program management tool designed to 
improve the application, recertification, and reporting process for 
organizations that participate in the Office of Single Family Housing 
(OSFH) activities and to assist HUD staff with the daily administration 
of FHA's Nonprofit Program activities. HUD maintains a roster of 
nonprofit organizations that are qualified to participate in certain 
specified FHA activities. In order to be recognized as a nonprofit 
organization for purposes of single family regulations in this chapter, 
an organization must: (1) Be included in the Roster; and (2) Comply 
with any requirements stated in a specific applicable provision of the 
single family regulations in this chapter. To be included in the 
Roster, a nonprofit organization must apply to HUD using an application 
(or materials) in a form prescribed by HUD (which may require an 
affordable housing program narrative for the activities the nonprofit 
organization proposes to carry out). The nonprofit organization must 
specify in its application the FHA activities it proposes to carry out. 
FHA, through its four Homeownership Centers (HOCs), receives 
application and recertification packages as well as annual reports from 
organizations that participate in OSFH activities such as purchasing 
HUD/Real Estate Owned (REO) homes at a discount, providing secondary 
financing in conjunction with FHA-insured mortgages, and securing FHA 
loans as the Mortgagor.
    In the past, participating organizations had to submit the required 
documents in paper form to FHA. To ease the burden of creating 
documents, printing them, and mailing them to the HOC, FHA has 
developed NPDMS. NPDMS will serve as a new means for industry clients 
to submit data required by FHA.
    NPDMS collects, stores and provides web-based access to 
participants' application and property activity data. This property 
data includes limited information on homebuyers that purchase HUD-REO 
properties. The system enhances FHA's ability to manage an 
organization's program activities from initial application/re-
certification through the entire life cycle of program activities. 
Additionally, NPDMS enables participating organizations to: (1) Submit 
required property reports on-line; and (2) access Geographic 
Information System (GIS) capability and data on HUD-REO properties that 
are eligible for purchase.
    The records maintained in the system are used by HUD staff to: (1) 
Verify an agency's eligibility to participate in the program; (2) to 
validate that no conflicts of interest exists amongst board members, 
employees, business partners, and homebuyers; (3) to validate that 
discounted HUD-REO homes were sold to eligible buyers; and (4) to 
determine that participating agencies have not exceeded profit limits 
on the re-sale of HUD-REO homes purchased through the discount program. 
However, because Government entities do not need approval to 
participate in the program they are not required to submit any business 
documentation or documentation on any governing boards or key staff. 
Government entities are required to submit property reports documenting 
the purchase and sell of REO discount properties.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    There are no external disclosures made from the system only adhoc 
reports are generated internal to HUD. These reports do not include any 
personal/sensitive information.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the systems:
Storage:
    Data is stored in NPDMS which is on UAI's server. Data is also 
backed up nightly with copies of data tapes stored in a secure location 
for disaster recovery.

Retrievability:
    Agency records can be retrieved by selecting an agency's name from 
the drop down list. Under the agency's file the viewer can see an 
agency's tax payer ID, board members and key staff names and partial 
social security numbers (the system maintains social security numbers 
but they are not fully visible); homebuyer information can be retrieved 
by selecting a REO case file number. The system maintains homebuyer's 
name, address, race and social security number.

Safeguards:
    UAI further secures the system as part of their normal best 
practices review of all services. Best practices for software include:
     Review of all security controls.
     Obtain and apply SSL Certificates.
     Review URLs to ensure use of HTTPS.
     Store passwords in non-human readable format.
     Inspect all SQL queries to prevent SQL injection attacks.
    Server systems are in a secured location with coded key entry for 
restricted access that has been inspected and approved by HUD. The 
Public HUD site hosted by UAI is in separate domain from non-profit 
data management service hosted by UAI. Data is backed up nightly with 
copies stored in a secure location for disaster recovery. Encryption 
and hashing techniques are applied to Public Housing information.

Retention and disposal:
    Records are maintained for 3 years after they are no longer active 
then they are sent to the Records Center to be archived and destroyed 
according departmental policy.

System manager(s) and address:
    Ruth Roman, Division Director of Program Support, Office of Single 
Family Housing , 451 7th Street, SW., Washington, DC 20410.

[[Page 62525]]

Notification Procedures:
    For information, assistance, or inquiry about the existence of 
records, contact the Privacy Act Officer at the Department of Housing 
and Urban Development, 451 7th Street, SW., Washington, DC. 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 determination, appear in 24 
CFR part 16. If additional information is needed, contact:
    (i) In relation to contesting contents of records, the Departmental 
Privacy Act Officer at HUD, 451 Seventh Street, SW., Room 2256, 
Washington, DC 20410; and
    (ii) In relation to appeals of initial denials, HUD, Departmental 
Privacy Appeals Officer, Office of General Counsel, 451 Seventh Street, 
SW., Washington, DC 20410.

Record source categories:
    Information is received from Nonprofit Organizations, Government 
Entities and homebuyers purchasing homes from participating agencies.

Exemptions from certain provisions of the Act:
    None.

[FR Doc. E8-24939 Filed 10-20-08; 8:45 am]
BILLING CODE 4210-67-P