[Federal Register Volume 83, Number 248 (Friday, December 28, 2018)]
[Notices]
[Pages 67334-67337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28361]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7009-N-06]


Privacy Act of 1974; Matching Program

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner and Office of the Assistant Secretary for Public and 
Indian Housing, Department of Housing and Urban Development (HUD).

ACTION: Notice of a re-established matching program.

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SUMMARY: Pursuant to the Computer Matching and Privacy Protection Act 
of 1988, as amended, HUD is providing notice of its intent to execute a 
new computer matching agreement with the U.S. Department of Health and 
Human Services (HHS) for a recurring matching program with HUD's Office 
of Public and Indian Housing (PIH) and Office of Housing, involving 
comparisons of information provided by participants in any authorized 
HUD rental housing assistance program with the independent sources of 
income information available through the National Directory of New 
Hires (NDNH) maintained by HHS. HUD will obtain HHS data and make the 
results available to: (1) Program administrators such as public housing 
agencies (PHAs) and private owners and management agents (O/As) 
(collectively referred to as POAs) 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. The most recent renewal of the 
current matching agreement expired on October 24, 2018.

DATES: 
    Applicability Date: The applicability date of this matching program 
shall be January 11, 2019 or 30 days from the date that the Computer 
Matching Agreement, signed by HUD and HHS Date Integrity Boards, are 
sent to OMB and Congress, whichever is later, provided no comments that 
would cause a contrary determination are received. The matching program 
will continue for 18 months after the applicable date and may be 
extended for an additional 12 months, if the respective agency Data 
Integrity Boards (DIBs) determine that the conditions specified in 5 
U.S.C. 552a(o)(2)(D) have been met.
    Comment Due Date: January 28, 2019.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice electronically through the Federal eRulemaking Portal at 
www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically. Electronic submission of comments allows the 
commenter maximum time to prepare and submit a comment, ensures timely 
receipt by HUD, and enables HUD to make them immediately available to 
the public. Comments submitted electronically through the 
www.regulations.gov website can be viewed by other commenters and 
interested members of the public. Commenters should follow the 
instructions provided on that site to submit comments electronically. 
Comments may also be submitted to the Rules Docket Clerk, Office of 
General Counsel, Department of Housing and Urban Development, 451 
Seventh Street, Room 10110, SW, Washington, DC 20410. Communications 
should refer to the above docket number. A copy of each communication 
submitted will be available for public inspection and copying between 
8:00 a.m. and 5:00 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: John Bravacos, Senior Agency Official 
for Privacy, Department of Housing and Urban Development, 451 Seventh 
Street SW, Room 10139, Washington, DC 20410, telephone number (202) 
402-3053 (this is not a toll-free number). Hearing- or speech-impaired 
individuals may access this number via TTY by calling the toll-free 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: On March 11, 2009, Section 239 of HUD's 2009 
Appropriations Act modified Section 904 of the Stewart B. McKinney Act 
of 1988, as amended, to include the Disaster Housing Assistance Program 
(DHAP) as a ``program'' of HUD for the purpose of income verifications 
and

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computer matching. As such, pursuant to the Computer Matching and 
Privacy Protection Act (CMPPA) of 1988, as amended; OMB's guidance on 
this statute entitled, ``Final Guidance Interpreting the Provisions of 
Public Law 100-503''; OMB Circular No. A-108, ``Federal Agency 
Responsibilities for Review, Reporting, and Publication under the 
Privacy Act;'' and OMB Circular No. A-130, ``Managing Information as a 
Strategic Resource''; HUD is providing the public with notice of a new 
computer matching agreement with HHS (previous notice of a computer 
matching program between HUD and HHS was previously published at 81 FR 
13403 on March 14, 2016). The first HUD-HHS computer matching program 
was conducted in September 2005, with HUD's Office of Public and Indian 
Housing (PIH). The scope of the HUD-HHS computer matching program was 
extended to include HUD's Office of Housing in December 2007, and to 
HUD's Disaster Housing Assistance Program (DHAP) in January 2011.
    The matching program will be carried out only to the extent 
necessary to: (1) Verify the employment and income of participants in 
certain rental assistance programs to correctly determine the amount of 
their rent and assistance, (2) identify, prevent, and recover improper 
payments made on behalf of tenants, and (3) after removal of personal 
identifiers, to conduct analyses of the employment and income reporting 
of individuals participating in any HUD authorized rental housing 
assistance program.
    HUD will make the results of the computer matching program 
available to public housing agencies (PHAs), private housing owners and 
management agents (O/As) 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, and contract administrators (CAs) overseeing and monitoring 
O/A operations. This information also may be disclosed to the HUD 
Office of Inspector General (HUD/OIG) and the United States Attorney 
General in detecting and investigating potential cases of fraud, waste, 
and abuse within HUD rental assistance programs.
    In addition to the above noted information disclosures, limited 
redisclosure of reports containing NDNH information may be redisclosed 
to the following persons and/or entities: (1) Independent auditors for 
the sole purpose of performing an audit of whether these HUD authorized 
entities verified tenants' employment and/or income and calculated the 
subsidy and rent correctly; and (2) entities and/or individuals 
associated with grievance procedures and judicial proceedings (i.e. 
lawyers, court personnel, agency personnel, grievance hearing officers, 
etc.) relating to independently verified unreported income identified 
through this matching program.
    HUD and its third-party administrators (PHAs, O/As, and CAs) will 
use this matching authority to identify, reduce or eliminate improper 
payments in HUD's rental housing assistance programs, while continuing 
to ensure that HUD rental housing assistance programs serve and are 
accessible by its intended program beneficiaries.

I. Participating Agencies

    Department of Housing and Urban Development and the Department of 
Health and Human Services.

II. Authority for Conducting the Matching Program

    This matching program is being conducted pursuant to Section 217 of 
the Consolidated Appropriation Act of 2004 (Pub. L. 108-199, Approved 
January 23, 2004), which amended Section 453(j) of the Social Security 
Act (42 U.S.C. 653(j)), 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, as amended by Section 239 of HUD's 2009 Appropriations, effective 
March 11, 2009 (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 (as well as members of their 
household 6 years of age and older) in HUD-administered programs 
involving rental housing assistance to disclose to HUD their Social 
Security Numbers (SSNs) as a condition of initial or continuing 
eligibility for participation in the programs. Effective January 31, 
2010, all applicants and participants under the age of 6, are required 
to disclose their SSN to HUD, in accordance with regulatory revisions 
made to 24 CFR 5.216, as published at 74 FR 68924, on December 29, 
2009.
    Section 217 of the Consolidated Appropriations Act of 2004 (Pub. L. 
108-199, approved January 23, 2004) 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. 17151(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 Refinement of Income and Rent Determination Requirements in 
Public and Assisted Housing Programs: Implementation of the Enterprise 
Income Verification (EIV) System--Amendments; Final rule published at 
74 FR 68924 on December 29, 2009, requires program administrators to 
use HUD's EIV system to verify tenant employment and income information 
during mandatory re-examinations or recertifications of family 
composition and income and reduce administrative and subsidy payment 
errors in accordance with HUD administrative guidance (HUD regulation 
at 24 CFR 5.233).
    This matching program also assists HUD in complying with the 
following Federal laws, requirements, and guidance related to 
identifying and reducing improper payments:
    1. Improper Payments Elimination and Recovery Act of 2010 (IPERA) 
(Pub. L. 111-204) (July 22, 2010);
    2. Presidential Memorandum on Enhancing Payment Accuracy Through a 
``Do Not Pay List'' (June 18, 2010);
    3. Office of Management and Budget M-18-20, Transmittal of Appendix 
C to OMB Circular A-123, Requirements for Payment Integrity 
Improvement'' (June 26, 2018);
    4. Presidential Memorandum on Finding and Recapturing Improper 
Payments (March 10, 2010);
    5. Reducing Improper Payments and Eliminating Waste in Federal 
Programs (Executive Order 13520, November 2009);
    6. Improper Payments Information Act of 2002 (Pub. L. 107-300);
    7. Office of Management and Budget M-03-13, Improper Payments 
Information Act of 2002;

[[Page 67336]]

    8. Improper Payments Elimination and Recovery Improvement Act 
(IPERIA) of 2012, (Pub. L. 112-248) (January 10, 2013); and
    9. Office of Management and Budget M-13-20, Protecting Privacy 
while Reducing Improper Payments with the Do Not Pay Initiative (August 
16, 2013).
    This matching program is also authorized by subsections 
453(j)(7)(A), (C)(i), and (D)(i) of the Social Security Act (as amended 
and authorized by Section 217 of the Consolidated Appropriations Act of 
2004 (Pub. L. 108-199)). Specifically, the aforementioned law 
authorizes HHS to compare information provided by HUD with data 
contained in the NDNH and report the results of the data match to HUD. 
The Social Security Act gives HUD the authority to disclose this 
information to CAs, O/As, and PHAs 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 that individual, and 
HUD has the authority to require consent as a condition of 
participating in HUD rental housing assistance programs.
    The NDNH contains new hire, quarterly wage, and unemployment 
insurance information furnished by state and Federal agencies and is 
maintained by HHS' Office of Child Support Enforcement (OCSE) in its 
system of records ``OCSE National Directory of New Hires,'' No. 09-80-
0381, published in the Federal Register at 80 FR 17894 (specifically 
pages 17906-17909) on April 2, 2015. This system of records notice 
authorizes disclosure of NDNH information to HUD pursuant to Routine 
Use (12) ``for the purpose of verifying the employment and income of 
the individuals and, after removal of personal identifiers, for the 
purpose of conducting analyses of the employment and income reporting 
of such individuals.''
    The HUD records used in the information comparison are retrieved 
from the Tenant Rental Assistance Certification System (TRACS) covered 
under HUD's Tenant Rental Assistance Certification System (HSNG/
MF.HTS.02), published on August 22, 2016 (81 FR 56684); and the 
Inventory Management System (IMS), also known as the Public and Indian 
Housing (PIH) Information Center (PIC) (HUD/PIH.01), published on April 
13, 2012 (77 FR 22337). The results of the information comparison are 
maintained within, the HUD system of records, Enterprise Income 
Verification System (EIV), No. HUD/PIH-5, last published in the Federal 
Register at 71 FR 45066 on August 8, 2006, and updated on September 1, 
2009, at 74 FR 45235. ``Routine use'' (1) of the system of records 
authorizes disclosure of HUD records to HHS.

III. Purposes

    HUD's primary objective of the computer matching program is to 
verify the employment and income of participants in certain rental 
assistance programs to determine the appropriate level of rental 
assistance, and to detect, deter and correct fraud, waste, and abuse in 
rental housing assistance programs. In meeting these objectives, HUD 
also is carrying out a responsibility under 42 U.S.C. Sec. 1437f(K) to 
ensure that income data provided to PHAs, and O/As, by household 
members is complete and accurate. HUD's various rental housing 
assistance programs require that participants meet certain income and 
other criteria to be eligible for rental assistance. In addition, 
tenants generally are required to report and recertify the amounts and 
sources of their income at least annually. However, under the Quality 
Housing and Work Responsibility Act (QHWRA) of 1998, PHAs operating 
Public Housing programs may offer tenants the option to pay a flat 
rent, or an income-based rent. 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.

IV. Categories of Individuals

    This notice of computer matching program applies to individuals 
receiving services from the following rental assistance programs:
A. Disaster Housing Assistance Program (DHAP)
B. Public Housing
C. Section 8 Housing Choice Vouchers (HCV)
D. Project-Based Vouchers
E. Section 8 Moderate Rehabilitation
F. Project-Based Section 8
    1. New Construction
    2. State Agency Financed
    3. Substantial Rehabilitation
    4. Sections 202/8
    5. Rural Housing Services Section 515/8
    6. Loan Management Set-Aside (LMSA)
    7. Property Disposition Set-Aside (PDSA)
G. Section 101 Rent Supplement
H. Section 202/162 Project Assistance Contract (PAC)
I. Section 202 Project Rental Assistance Contract (PRAC)
J. Section 811 Project Rental Assistance Contract (PRAC)
K. Section 236 Rental Assistance Program
L. 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.

V. Categories of Records

    The following are the categories of record in this matching 
agreement:

A. HUD Input File

 First name
 Last name
 Date of birth
 Social Security number

B. New Hire File

 New hire processed date
 Employee name
 Employee address
 Employee date of hire
 Employee state of hire
 Federal Employer Identification Number
 State Employer Identification Number
 Department of Defense status code
 Employer name
 Employer address
 Transmitter agency code
 Transmitter state code
 Transmitter state or agency name

C. Quarterly Wage File

 Quarterly wage processed date
 Employee name
 Federal Employer Identification Number
 State Employer Identification Number
 Department of Defense code
 Employer name
 Employer address
 Employee wage amount
 Quarterly wage reporting period
 Transmitter agency code
 Transmitter state code
 Transmitter state or agency name

D. Unemployment Insurance File

 Unemployment insurance processed date
 Claimant name
 Claimant address
 Claimant benefit amount
 Unemployment insurance reporting period
 Transmitter state code
 Transmitter state or agency name

VI. System(s) of Records

    OCSE NDNH contains new hire, quarterly wage, and unemployment 
insurance information furnished by

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state and federal agencies and is maintained by OCSE in its system of 
records ``OCSE National Directory of New Hires,'' No. 09-80-0381, 
published in the Federal Register at 80 FR 17906 on April 2, 2015, and 
updated on February 14, 2018, at 83 FR 6591. The disclosure of NDNH 
information by OCSE to HUD constitutes a ``routine use,'' as defined by 
the Privacy Act. 5 U.S.C. 552a(b)(3). Routine use (12) of the system of 
records authorizes the disclosure of NDNH information to HUD. 80 FR 
17906, 17907 (April 2, 2015).
    The HUD records used in the information comparison are retrieved 
from, and the results of the information comparison are maintained 
within, the HUD system of records ``Enterprise Income Verification'' 
(EIV), No. HUD/PIH-5, last published in the Federal Register at 71 FR 
45066 on August 8, 2006, and updated on September 1, 2009, at 74 FR 
45235. ``Routine use'' (1) of the system of records authorizes 
disclosure of HUD records to OCSE.

    Dated: December 21, 2018.
John Bravacos,
Senior Agency Official for Privacy.
[FR Doc. 2018-28361 Filed 12-27-18; 8:45 am]
 BILLING CODE 4210-67-P