[Federal Register Volume 74, Number 46 (Wednesday, March 11, 2009)]
[Notices]
[Pages 10605-10608]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-5127]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5291-N-02]


Privacy Act of 1974; Notice of a Computer Matching Program 
Between the Department of Housing and Urban Development (HUD) and the 
Social Security Administration (SSA): Matching Tenant Data in Assisted 
Housing Programs

AGENCY: Office of the Chief Information Officer, HUD.

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ACTION: Notice of a computer matching program between HUD and 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 (5U.S.C. 552a, as amended), HUD is notifying 
the public of its intent to enter into a new computer matching program 
with SSA in May 2009. HUD will obtain SSA data and make the results 
available to (1) program administrators such as public housing agencies 
(PHAs) and private owners and management agents (O/As) to enable them 
to verify the accuracy of income reported by the tenants (participants) 
of HUD rental assistance programs and (2) contract administrators (CAs) 
overseeing and monitoring O/A operations as well as independent public 
auditors (IPAs) that audit both PHAs and O/As. SSA data will also be 
used to validate information provided by borrowers and co-borrowers 
applying for and obtaining insurance for Federal Housing Administration 
(FHA) mortgages.
    Administrators of HUD rental assistance programs rely upon the 
accuracy of tenant-reported income to determine participant eligibility 
for and level of, rental assistance. The computer matching program will 
provide indicators of potential under-reported tenant income that will 
require additional verification to identify inappropriate (excess or 
insufficient) rental assistance, and perhaps administrative or legal 
actions. The matching program will be carried out to detect 
inappropriate (excessive or insufficient) rental assistance under 
sections 221(3), 221(d)(5), and 236 of the National Housing Act, the 
United States Housing Act of 1937, section 101 of the Housing and 
Community Development Act of 1965, section 202 of the Housing Act of 
1959, section 811 of the Cranston-Gonzalez National Affordable Housing 
Act, the Native American Housing Assistance and Self-Determination Act 
of 1996, and the Quality Housing and Work Responsibility Act (QHWRA) of 
1998. The program will also provide for verification of Social Security 
numbers (SSNs) for tenants participating in covered rental assistance 
programs, and borrowers and co-borrowers applying for mortgage 
insurance for FHA loans through 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 death data, Social Security (SS) and 
Supplemental Security Income (SSI) benefits data.

DATES: Effective Date: Computer matching is expected to begin April 10, 
2009, 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: April 10, 2009.

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 inquires: Office of 
the Chief Information Officer, contact Donna Robinson-Staton, 
Departmental Privacy Act Officer, HUD, 451 Seventh Street, SW., Room 
2256, Washington, DC 20410, telephone number (202) 402-8073. For 
program information: Office of Public and Indian Housing, contact 
Nicole Faison, Director of the Office of Public Housing Programs, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 4226, Washington, DC 20410, telephone number (202) 708-0744; 
Office of Housing, contact Gail Williamson, 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) 402-2473. (These are not toll free telephone 
numbers). A telecommunications device for hearing- and speech-impaired 
individuals (TTY) is available at (800) 877-8339 (Federal Information 
Relay Service).

SUPPLEMENTARY INFORMATION: This Notice supersedes a similar notice 
published in the Federal Register (FR) on October 5, 2006 at 71 FR 
58871. 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 OMB's Office of Information and Regulatory 
Affairs.

I. Authority

    This matching program is being conducted pursuant to the Privacy 
Act of 1974 (5 U.S.C 552a); 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 Housing and 
Community Development Act of 1987 authorizes HUD to require 
participants (and applicants) in HUD-administered programs involving 
loan and rental assistance to disclose to HUD their social security 
numbers (SSNs) as a condition of continuing (or initial) 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 participant's eligibility or level of benefits.

II. Covered Programs

    This Notice of computer matching program applies to the following 
rental assistance programs:
    A. Public Housing.
    B. Section 8 Housing Choice Voucher (HCV).
    C. Project-based Section 8.
    1. New Construction.
    2. State Agency Financed.

[[Page 10607]]

    3. Substantial Rehabilitation.
    4. Section 202/8.
    5. Rural Housing Services Section 515/8.
    6. Loan Management Set-Aside (LMSA).
    7. Property Disposition Set-Aside (PDSA).
    D. Rent Supplement.
    E. Rental Assistance Payment (RAP).
    F. Section 202/162 Project Assistance Contract (PAC).
    G. Section 202 Project Rental Assistance Contract (PRAC).
    H. Section 811 PRAC.
    I. Section 236.
    J. Section 221(d)(3) Below Market Interest Rate (BMIR).

    Note: This Notice does not apply to the Low Income Housing Tax 
Credit (LIHTC) or the Rural Housing Services Section 515 without 
Section 8 programs.

III. Objectives To Be Met by the Matching Program

    HUD's primary objective in implementing the computer matching 
program is to verify the income of individuals participating in the 
rental assistance programs identified in paragraph II above to 
determine the appropriate level of rental assistance, and to detect, 
deter, reduce and correct fraud and abuse in rental assistance 
programs. In meeting this objective, 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, administered through POAs, require 
that applicants and participants 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, PHAs must offer public 
housing 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.
    Other objectives of this computer matching program include: (1) 
Increasing the availability of rental assistance to individuals who 
meet the requirements of the rental assistance programs; (2) after 
removal of personal identifiers, conducting analyses of the Social 
Security death data and benefit information, and income reporting of 
program participants; and (3) measure improper payments due to under-
reporting of income and/or overpayment of subsidy on behalf of deceased 
program participants (single member households).

III. Program Description

    In this computer matching program, tenant-provided information 
included in HUD's automated systems of records known as Tenant Rental 
Assistance Certification System (TRACS) (HUD/H-11) and the Inventory 
Management System (IMS), formerly known as the Public and Indian 
Housing Information Center (PIC) (HUD/PIH-4), will be compared to data 
from SSA databases. The notices for these systems were published at 62 
FR 11909 and 73 FR 58256, respectively. HUD will disclose to SSA only 
tenant personal identifiers, i.e., full name, Social Security number, 
and date of birth. SSA will match the HUD-provided personal identifiers 
to personal identifiers included in their various systems of records 
identified in Section IV of this notice. SSA will validate HUD-provided 
personal identifiers and provide income data to HUD only for 
individuals with matched personal identifiers. SSA will also provide 
the date of death or indication of death for any program participant 
whose HUD-supplied personal identifiers are successfully matched 
against SSA databases. For any individual whose personal identifiers do 
not match the personal identifiers in the SSA database, SSA will 
provide HUD with an error message, which will describe the reason(s) 
for no match (i.e. incorrect date of birth or surname, or invalid 
Social Security number).

A. Income Verification

    Any match (i.e., a ``hit'') will be further reviewed by HUD, the 
POAs, 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 SS and SSI benefit information and other 
data will be sought directly from tenants. For public housing and 
Section 8 tenant-based HCV programs, tenants will be required to 
provide PHAs with original SSA benefit verification letters dated 
within the last 60 days for comparison to computer matching results for 
accuracy. For multifamily housing programs, tenants must provide O/As 
with SSA benefit verification letters dated within the last 120 days. 
For SS and SSI benefit information for prior years, the tenant may be 
required to provide POAs with an original benefit history document from 
SSA if there is a dispute regarding historical income information 
obtained through the computer matching program.

B. Administrative or Legal Actions

    Regarding all the matching described in this notice, POAs will take 
appropriate action in consultation with tenants to: (1) Resolve income 
disparities between tenant-reported and SSA-reported data; and (2) Use 
correct income amounts in determining rental assistance.
    POAs must compute the rent in full compliance with all applicable 
statutes, regulations and administrator policies. POAs must ensure that 
they use the correct income and correctly compute the rent. In order to 
protect any individual whose records are used in this matching program, 
POAs may not suspend, terminate, reduce, or make a final denial of any 
rental assistance to any tenant, or take other adverse action against 
the tenant as a 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; (b) 
The POA has independently verified the information; and (c) either the 
notice period provided in applicable regulations of the program, or 30 
days, whichever is later, has expired. ``Independently verified'' in 
item (b) means the specific information relating to the tenant that is 
used as a basis for an adverse action has been investigated and 
confirmed by the POA. (5 U.S.C. 552a) As such, POAs must 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.
    With respect to SSA-provided error messages regarding HUD-provided 
tenant, and matched borrower or co-borrower personal identifiers, the 
POA and FHA administrator/agent will confirm its file and system 
documentation to confirm accuracy of data elements, and make any 
necessary corrections. If there is no error in the documentation, the 
POAs and FHA administrators/agents will notify the individual of the 
error and request that the individual contact the SSA to correct any 
SSA data errors. POAs and FHA administrators/agents cannot correct such 
errors.

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IV. Records To Be Matched

    SSA will conduct the matching of tenant SSNs and additional 
identifiers (surnames and dates of birth) to tenant data that HUD 
supplies from its systems of records known as the Tenant Rental 
Assistance Certification System (TRACS) (HUD/H-11) and the Inventory 
Management System (IMS), formerly known as the Public and Indian 
Housing Information Center (PIC) (HUD/PIH-4). Program administrators 
utilize the form HUD-50058 module within the PIC system and the form 
HUD-50059 module within the TRACS to provide HUD with the tenant data.
    SSA will match the tenant records included in HUD/H-11 and HUD/PIH-
4 to their systems of records known as SSA's Master Files of Social 
Security Number Holders, and SSN Applications (60-0058), Master 
Beneficiary Record (60-0090), and Supplemental Security Income Record 
(60-103). The notice for these systems was published at 71 FR 1795 on 
January 11, 2006. HUD will place the resulting matched data into its 
Enterprise Income Verification (EIV) system (HUD/PIH-5). The notice for 
this system was initially published at 70 FR 41780 on July 20, 2005, 
and amended on August 8, 2006 (71 FR 45066) to reflect changes in the 
following categories (sections): Individuals Covered by the System, 
Records in the System, Authority for Maintenance of the System, Purpose 
of the System and the Routine Uses. The tenant records (one record for 
each family member) include these data elements: full name, SSN, and 
date of birth.
    HUD data will also be matched to the SSA's Master Files of Social 
Security Number Holders, and SSN Applications (60-0058) for the purpose 
of validating SSNs of borrowers and co-borrowers of FHA mortgages and 
participants of HUD rental assistance programs to identify 
noncompliance with program eligibility requirements. The Computerized 
Homes Underwriting Management System (HUD/H-5), published at 57 FR 
62142 on December 29, 1997 is the HUD FHA system of records used to 
match data transferred from SSA's Master Files of Social Security 
Number Holder and SSN Applications (60-0058) to the HUD mainframe. 
Mortgagees enter SSN data and review the returning verification/failure 
data through the FHA Connection. HUD will compare tenant SSNs provided 
by POAs to reveal duplicate SSNs and potential duplicate rental 
assistance.

V. Period of the Match

    The computer matching program will be conducted according to the 
computer matching agreement between HUD and the SSA. The computer 
matching agreement 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 agreement 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: March 3, 2009.
Lynn Allen,
Acting Chief Information Officer.
 [FR Doc. E9-5127 Filed 3-10-09; 8:45 am]
BILLING CODE 4210-67-P