[Federal Register Volume 81, Number 155 (Thursday, August 11, 2016)]
[Notices]
[Pages 53152-53155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19134]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5921-N-11]


The Privacy Act Of 1974, As Amended; Notice of New HUD Certified 
Housing Counselor and Client Certificate of Housing Counseling 
Database, System of Records

AGENCY: Office of the Assistance Secretary for Housing, HUD.

ACTION: New System of Records.

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

SUMMARY: The Department's Office of the Assistant Secretary for 
Housing, Federal Housing Commissioner is proposing to create a new 
system of records, the HUD Certified Housing Counselor and Client 
Certificate of Housing Counseling Database. The Office of the Assistant 
Secretary for Housing, Federal Housing Commissioner provides support to 
a nationwide network of housing counseling agencies that provide 
products and services to current and prospective homeowners, homeowners 
at risk of default, renters, and the homeless. Public Law 111-203 
(2010) amends section 106 of the Housing and Urban Development Act of 
1968 to improve the effectiveness of housing counseling services in HUD 
programs by, among other things, requiring that the entities and 
individual counselors be certified by HUD as competent to provide such 
services. The new HUD Certified Housing Counselor and Client 
Certificate of Housing Counseling Database will allow the Department to 
collect and track certification examination requirements and client 
housing counseling certificates issued by counselors participating in 
the Department's Housing Counseling Program. A detailed description of 
the new system and its functions are contained in the Purpose statement 
of this notice.

DATES: Effective Date: The notice will be effective September 12, 2016, 
unless comments are received that would result in a contrary 
determination.
    Comments Due Date: September 12, 2016.

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. Faxed comments are not accepted. 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: Frieda B. Edwards, Acting Chief 
Privacy Officer, 451 Seventh Street SW., Room 10139, Washington, DC 
20410, telephone number 202-402-6828 (this is not a toll-free number). 
Individuals who are hearing- and speech-impaired may access this number 
via TTY by calling the Federal Relay Service at 800-877-8339 (this is a 
toll-free number).

SUPPLEMENTARY INFORMATION: Publication of this notice allows the 
Department to satisfy its reporting requirement and keep an up-to-date 
accounting of its system of records publications. The new system of 
records incorporates Federal privacy requirements and HUD policy 
requirements. The Privacy Act places on Federal agencies principal 
responsibility for compliance with its provisions, by requiring Federal 
agencies to safeguard an individual's records against an invasion of 
personal privacy; protect records contained in an agency system of 
records from unauthorized disclosure; ensure that the records collected 
are relevant, necessary, current, and collected only for their intended 
use; and adequately safeguard the records to prevent misuse of such 
information. In addition, this notice demonstrates the Department's 
focus on following industry best practices to protect the personal 
privacy of the individuals covered by this system of records.
    The system of records states the name and location of the record 
system, the authority for and manner of its operations, the categories 
of individuals that it covers, the type of records that it contains, 
the sources of the information in the records, the routine uses made of 
the records, and the type of exemptions in place for the records. 
Further, this

[[Page 53153]]

notice includes the business addresses of the Department officials who 
will inform interested persons of the procedures whereby they may gain 
access to and/or request amendments to records pertaining to them.
    Pursuant to the Privacy Act and the Office of Management and Budget 
(OMB) guidelines, a report of this new system of records was submitted 
to OMB, the Senate Committee on Homeland Security and Governmental 
Affairs, and the House Committee on Oversight and Government Reform as 
instructed by paragraph 4c of Appendix l to OMB Circular No. A-130, 
``Federal Agencies Responsibilities for Maintaining Records About 
Individuals,'' July 25, 1994 November 28, 2000.

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

    Dated: July 22, 2016.
Patricia A. Hoban-Moore,
Senior Agency Official for Privacy.
SYSTEM OF RECORDS NO.: HSNG.SF/HC.01

SYSTEM NAME:
    HUD Certified Housing Counselor and Client Certificate of Housing 
Counseling Database. The systems impacted are the Housing Counseling 
System (F11), the Computerized Home Underwriting Management System (F-
17), the FHA Connection (F-17C), the Single Family Housing Enterprise 
Data Warehouse (D64A)), and the HUD Certified Housing Counselor and 
Client Certificate of Housing Counseling Database, which is a module of 
F11.

SYSTEM LOCATION:
    The database is physically located at the Department of Housing and 
Urban Development, 451 Seventh Street SW., Washington, DC 20410, and 
accessed by HUD field offices with authorized access. Records are 
maintained and transmitted to this database from the virtual 
environment of the service providers under contract with HUD.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who intend to access the examination or training 
materials offered by HUD in association with the certification 
requirements, whether or not they become certified; individuals seeking 
HUD certified housing counselor certification; or housing counseling 
clients receiving housing counseling from an agency participating in 
HUD's Housing Counseling Program.

CATEGORIES OF RECORDS IN THE SYSTEM:
    The categories of records collected by the HUD Certified Housing 
Counselor and Client Certificate of Housing Counseling Database are as 
follows:
    (1) Individuals registering to access HUD Certified Housing 
Counselor training: Legal first and last name, mailing address, 
telephone number, email address, and fax number (if applicable).
    (2) Individuals registering to access the HUD Housing Counselor 
Certification Examination: Legal first and last name, mailing address, 
telephone number, email address, fax number (if applicable), Social 
Security number (SSN), and employer's HUD Housing Counseling System 
(HCS) number (if registrant's employer is a housing counseling agency 
participating in HUD's Housing Counseling Program). Registrants have 
the option of providing demographic information: Race, ethnicity, 
gender and languages in which counseling services are offered. HUD is 
collecting information on languages to assess the number of examinees 
that might benefit from certification examination training materials 
being available in other languages. Information for fee payment will be 
collected by a third party vendor and will include credit card number, 
expiration date, and security code.
    (3) Individuals registering for HUD Certified Housing Counselor 
status or for Agency Application Coordinator for FHA Connection: Legal 
first and last name, mailing address, telephone number, email address, 
fax number (if applicable), Social Security number (SSN), HUD Housing 
Counselor Certification System ID number, mother's maiden name, and 
employer's HUD Housing Counseling System (HCS) ID number, and 
verification of employing agency's name.
    (4) Examination Information: Scores from housing counselor 
certification examination list of all test-takers who pass the 
certification examination.
    (5) Client Certificate of Housing Counseling: Legal first and last 
name and address of the housing counseling client receiving counseling 
services from an agency participating in HUD's Housing Counseling 
Program; legal first and last name and the Counselor ID number of the 
counselor completing the client certificate of housing counseling; 
name, address, telephone number, Employer Identification Number (EIN), 
and HCS ID number of the agency participating in HUD's Housing 
Counseling Program; date and type of counseling service received; fees 
collected or waived; and whether counseling or education occurred in-
person or remotely (telephone or Internet).

    Note: Certain records maintained by this database pertain to 
individuals in their role as a sole proprietorship under the 
Department's Housing Counseling Program. This information may 
reflect personal information; however, only the records that are 
personal, about the individual who is the subject of the record, are 
subject to the Privacy Act.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Subtitle D of title XIV of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Public Law 111-203, 124 Stat. 1376 (July 21, 
2010); section 106 of the Housing and Urban Development Act of 1968, 12 
U.S.C.Sec.  1701x; and the Housing and Community Development Act of 
1987, 42 U.S.C. 3543, which authorizes HUD to collect SSNs.

PURPOSE(S):
    The Dodd-Frank Wall Street Reform and Consumer Protection Act 
amended section 106 of the HUD Act of 1968 to require that all 
homeownership and rental housing counseling provided in connection with 
HUD programs be provided by a HUD Certified housing counselor. The 
proposed rule published on September 13, 2013, set a timeframe for 
completing the certification examination. The final rule is under 
review and will address the timeframe when published. HUD will announce 
the start date of the certification examination in a separate Federal 
Register notice. The certification examination requires that an 
individual demonstrate competency by passing a standardized written 
examination covering six major areas of housing counseling. These areas 
include: (1) Financial management; (2) property maintenance; (3) 
responsibilities of homeownership and tenancy; (4) fair housing laws 
and requirements; (5) housing affordability; and (6) avoidance of, and 
responses to, rental and mortgage delinquency and avoidance of eviction 
and mortgage default. In addition to passing the certification 
examination, individuals must work for a participating agency to become 
a HUD Certified Counselor. The new database will allow the Department 
to track housing counselor certifications that will be issued under the 
Department's Housing Counseling Program, including the initial 
application/issuance of the HUD certified housing counselor 
certificate, any reissuance due to changes in employment status, and 
any revocations of certification. This system may also be used to 
verify the participating agency's compliance with HUD's Housing 
Counseling Program requirements. Other statutory changes to improve the 
effectiveness of housing

[[Page 53154]]

counseling include increasing the breadth of counseling services so 
that they are comprehensive with respect to homeownership and rental 
counseling and issuing client Certificates of Housing Counseling to 
verify counseling requirements for FHA and other Federal, State, and 
local programs, as applicable. HUD's Housing Counseling Program 
currently provides comprehensive homeownership and rental counseling. 
As noted in the proposed rule published on September 13, 2013, an 
individual counselor, in contrast to multiple counseling agencies, will 
have to show competency (through passage of an examination) in 
identifying and understanding the breadth of homeownership and rental 
counseling services. Currently, a potential homebuyer or homeowner is 
likely to seek a housing counseling agency that specializes in a 
specific area and receive comprehensive counseling by a counselor in 
that specific area. As a result of increasing the breadth of counseling 
service knowledge, a housing counselor providing counseling on a 
specific area requested by the client would also be trained to identify 
cross-cutting issues that a client may not have identified when seeking 
out a specific counselor or during the intake process by the housing 
counseling agency. In addition, certifying individual counselors may 
further enhance the high regard of agencies and counselors 
participating in HUD's Housing Counseling Program.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, all or a portion of the records or 
information contained in this system may be disclosed outside HUD as a 
routine use pursuant to 5 U.S.C. 552a(b)(3), as follows:
    (1) To appropriate agencies, entities, and persons to the extent 
that such disclosures are compatible with the purpose for which the 
records in this system were collected, as set forth by Appendix I \1\--
HUD's Routine Uses Inventory Notice, published in the Federal Register.
---------------------------------------------------------------------------

    \1\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
---------------------------------------------------------------------------

    (2) To appropriate agencies, entities, and persons when:
    (a) HUD suspects or has confirmed that the security or 
confidentiality of information in a system of records has been 
compromised;
    (b) HUD has determined that, as a result of the suspected or 
confirmed compromise, there is a risk of harm to economic or property 
interests, identity theft or fraud, or harm to the security or 
integrity of systems or programs (whether maintained by HUD or another 
agency or entity) that rely upon the compromised information; and
    (c) HUD determines that the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist in connection 
with HUD's efforts to respond to the suspected or confirmed compromise 
and prevent, minimize, or remedy such harm for purposes of facilitating 
responses and remediation efforts in the event of a data breach.
    (3) To third party fee collection service for payment of 
examination fees.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
    Storage: Records in this system are stored electronically. The 
records may be stored on magnetic disc, tape, and digital media. There 
are no hardcopy records produced that require additional storage.

SAFEGUARDS:
    Access to electronic systems is by password and code identification 
card and is limited to authorized users. There are no hardcopy records 
produced that require an additional safeguard.

RETRIEVABILITY:
    Electronic records are retrieved by name (first and last), agency 
HCS number, employer, and system ID number. There are no hardcopy 
records produced that require additional retrieval.

RETENTION AND DISPOSAL:
    The records that reside in the system will be kept for 10 years 
after the final action is taken on the file, document, and/or 
transaction. Longer retention is authorized if required for business 
use (Reference: GRS 1.2 DAA-GRS-2013-0008-0001). After the record 
retention requirements have been met (a minimum of 10 years), the data 
and records can be purged or deleted from the system. If paper records 
are generated from the system, they can be archived at the local 
Federal Records Center after the final action or transaction has taken 
place. Accordingly, paper records will be destroyed by burning of 
shredding, and electronic records will be destroyed according to NIST 
Special Publication 800-88, ``Guidelines for Media Sanitization.''

SYSTEM MANAGER(S) AND ADDRESS:
    Danberry Carmon, Associate Deputy Assistant Secretary, Office of 
Housing Counseling, 451 Seventh Street SW., Room 9224, Washington, DC 
20410.

NOTIFICATION AND RECORD ACCESS PROCEDURES:
    For Information, assistance, or inquiries about the existence of 
records contact, Frieda B. Edwards, Acting Chief Privacy Officer, 451 
Seventh Street SW., Room 10139, Washington, DC 20410, telephone number 
202-402-6828. When seeking records about yourself from this system of 
records or any other HUD system of records, your request must conform 
with the Privacy Act regulations set forth in 24 CFR part 16. You must 
first verify your identity by providing your full name, current 
address, and date and place of birth. You must sign your request, and 
your signature must either be notarized or submitted under 28 U.S.C. 
1746, a law that permits statements to be made under penalty of perjury 
as a substitute for notarization. In addition, your request should:
    (1) Explain why you believe HUD would have information on you.
    (2) Identify which office of HUD you believe has the records about 
you.
    (3) Specify when you believe the records would have been created.
    (4) Provide any other information that will help the Freedom of 
Information Act (FOIA) staff determine which HUD office may have 
responsive records.
    If your request is seeking records pertaining to another living 
individual, you must obtain a statement from that individual certifying 
their agreement for you to access their records. Without the above 
information, HUD may not be able to conduct an effective search, and 
your request may be denied due to lack of specificity or lack of 
compliance with applicable regulations.

CONTESTING RECORD PROCEDURES:
    The Department's rules for contesting contents of records and 
appealing initial denials appear in 24 CFR part 16.3, ``Procedures for 
Inquiries.'' Additional assistance may be obtained by contacting Frieda 
B. Edwards, Acting Chief Privacy Officer, 451 Seventh Street SW., Room 
10139, Washington, DC 20410, or the HUD Departmental Privacy Appeals 
Officer, Office of General Counsel, Department of Housing and Urban 
Development, 451 Seventh Street SW., Room 10110, Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    (1) Data is provided by State and tribal entities, or others who 
provide

[[Page 53155]]

Federal certification data upon which the housing counseling 
certification is based.
    (2) Data is provided by the requesting applicant at the time of 
their request for housing counseling certification. This data is 
generated in the processing of the homeownership and rental housing 
counseling certification process.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 2016-19134 Filed 8-10-16; 8:45 am]
BILLING CODE 4210-67-P