[Federal Register: June 27, 2006 (Volume 71, Number 123)]
[Notices]               
[Page 36540-36542]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn06-50]                         

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4922-N-18]

 
Privacy Act of 1974; Notice of Matching Program: Matching Tenant 
Data in Assisted Housing Programs

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notice of a computer matching program between the Department of 
Housing and Urban Development (HUD) and the Department of Homeland 
Security, Federal Emergency Management Agency (FEMA).

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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, HUD is announcing a new matching program 
involving comparisons between income data provided by applicants or 
participants in HUD's assisted housing programs and applicants for FEMA 
disaster assistance. The matching program will be carried out to detect 
inappropriate (excessive or insufficient) housing assistance under the 
National Housing Act, the United States Housing Act of 1937, section 
101 of the Housing and Community Development Act of 1965, the Native 
American Housing Assistance and Self-Determination Act of 1996, and the 
Quality Housing and Work Responsibility Act of 1998.
    The matching program will be accomplished by comparing income, 
family size, family address, family identity, and benefit data for 
individuals participating in HUD's assisted housing programs and 
subsidized multifamily housing programs with disaster emergency 
assistance data maintained by FEMA in its systems of records known as 
Disaster Assistance Recovery Files (FEMA/REG-2), last published at 69 
FR 65615 (November 15, 2004). Specifically, HUD will compare the FEMA 
identity, income, family size, and benefit data to tenant-reported data 
included in HUD's system of records known as: (1) the Tenant Housing 
Assistance and Contract Verification Data (HUD/H-11), last published at 
62 FR 11909 (March 13, 1997); and (2) the Public and Indian Housing 
Information Center (HUD/PIH-4), last published at 67 FR 20986 (April 
29, 2002). The tenant comparisons will identify, based on criteria 
established by HUD, tenants whose incomes, family size, address, or 
benefit levels, etc. that require further verification to determine if 
the tenants received appropriate levels of rental assistance. The 
program also provides for the verification of the matching results and 
the initiation of appropriate administrative or legal actions.

DATES: Effective Date: Computer matching is expected to begin July 27, 
2006 unless comments are received which will result in a contrary 
determination, or 40 days after a copy of the underlying matching 
agreement is signed, approved by HUD and FEMA Data Integrity Boards, 
and sent to both Houses of Congress, whichever is later.
    Comments Due Date: July 27, 2006.

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 20410-0500. Communications should refer to the 
above docket number and title. Facsimile (FAX) comments are not 
acceptable. A copy of each communication submitted will be available 
for public inspection and copying between 7:30 a.m. and 5:30 p.m. 
weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: For Privacy Act: Jeanette Smith, 
Departmental Privacy Act Officer, Room P8001, Department of Housing and 
Urban Development, 451 Seventh Street, SW., Washington, DC 20410, 
telephone number (202) 708-2374. A telecommunications device for 
hearing- and speech-impaired individuals (TTY) is available at 1-800-
877-8339 (Federal Information Relay Service).
    For further information from recipient agency: Bryan Saddler, 
Counsel to the Inspector General, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 8260, Washington, DC 20410, 
(202) 708-1613.

SUPPLEMENTARY INFORMATION: 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 of the House of Representatives, the Committee on Governmental 
Affairs of the Senate, and

[[Page 36541]]

OMB's Office of Information and Regulatory Affairs.

I. Authority

    This matching program is being conducted pursuant to the Emergency 
Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico 
and Pandemic Influenza, 2006 (Pub. L. 109-148); section 3003 of the 
Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-66); 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.); the Quality Housing 
and Work Responsibility Act of 1998 (42 U.S.C. 1437a(f)); the Inspector 
General Act of 1978 (5 U.S.C. App. 3); Computer Matching and Privacy 
Protection Act of 1988 (Pub. Law 100-53); and 65 FR 24732 and 64 FR 
54930.
    Chapter 9, Title I, of the Emergency Supplemental Appropriations to 
Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 
requires HUD to provide Tenant-Based Rental Assistance only for tenants 
who received housing assistance prior to the hurricanes and to ``those 
which were homeless or in emergency shelters in the declared disaster 
area prior to Hurricanes Katrina or Rita.'' It also requires, with 
respect to Community Development Fund assistance, that HUD establish 
procedures to prevent recipients from receiving any duplication of 
benefits.
    Section 3003 of the Budget Reconciliation Act authorizes HUD to 
require applicants and participants in assisted housing programs to 
sign a consent form authorizing the Secretary of HUD to request that 
the Commissioner of Social Security and the Secretary of the Treasury 
release the Federal tax information. The final rule regarding 
participants' consent to the release of information was published by 
HUD in the Federal Register on March 20, 1995 (61 FR 11112).
    The Stewart B. McKinney Homeless Assistance Amendments Act of 1988 
authorizes HUD and Public Housing Agencies (but not private owners/
management agents for subsidized multifamily projects (hereafter 
collectively referred to as ``POAs'')) to request wage and claim 
information from State Wage Information Collection Agencies (SWICAs) 
responsible for administering State unemployment laws in order to 
undertake computer matching. This Act authorizes HUD to require 
applicants and participants to sign a consent form authorizing HUD or 
the POA to request wage and claim information from the SWICAs.
    The Housing and Community Development Act of 1987 authorizes HUD to 
require applicants and participants (as well as members of their 
household six years of age and older) in HUD-administered programs 
involving rental assistance to disclose to HUD their SSNs as a 
condition of initial or continuing eligibility for participation in the 
programs.
    The Quality Housing and Work Responsibility Act of 1998 (QHWRA), 
section 508(d), 42 U.S.C. 1437a(f) authorizes the Secretary of HUD to 
require disclosure by the tenant to the public housing agency of income 
information received by the tenant from HUD as part of 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 participants' 
eligibility or level of benefits.
    The Inspector General Act authorizes the HUD Inspector General to 
undertake programs to detect and prevent fraud and abuse in all HUD 
programs.
    The FEMA, pursuant to section 312 of the Stafford Act, 42 U.S.C. 
5155, must assure that no person or entity receiving disaster 
assistance receives assistance ``with respect to any part of such loss 
as to which he has received financial assistance under any other 
program or from insurance or any other source.''

II. Objectives To Be Met by the Matching Program

    HUD's primary objective in implementing the computer matching 
program is to increase the availability of rental assistance to 
individuals who meet the requirements of the rental assistance 
programs. Other objectives include determining the appropriate level of 
rental assistance, and deterring and correcting abuse in assisted 
housing programs. In meeting these objectives HUD also is carrying out 
a responsibility under 42 U.S.C. 1437a(f) to ensure that income data 
provided to POAs by household members is complete and accurate, and 
under 42 U.S.C. 5155 to avoid the duplication of Federal assistance 
payments.
    HUD's various assisted housing programs, available through POAs, 
require that applicants 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, public housing agencies may 
now 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 (65 FR 16692; March 29, 
2000) specified that household composition must be recertified annually 
for tenants who select a flat rent or income-based rent.
    The matching program identifies tenants receiving inappropriate 
(excessive or insufficient) rental assistance resulting from under or 
over-reported household income (including other Federal assistance) or 
composition. When excessive rental assistance amounts are identified, 
some tenants move out of assisted housing units; other tenants agree to 
repay excessive rental assistance. These actions may increase rental 
assistance or the number of units available to serve other 
beneficiaries of HUD programs. When tenants continue to be eligible for 
rental assistance, but at a reduced level, the tenants will be required 
to increase their contributions toward rent.

III. Program Description

    This computer matching program, to the extent that it involves the 
use of SSA, IRS or SWICA data is fully described at 69 FR 11033. With 
respect to FEMA data, the matching program will be accomplished by 
comparing income, family size, family address, family identity, and 
benefit data for individuals participating in HUD's assisted housing 
programs and subsidized multifamily housing programs with disaster 
emergency assistance data maintained by FEMA in its systems of records 
known as Disaster Assistance Recovery Files (FEMA/REG-2), last 
published at 69 FR 65615 (November 15, 2004). Specifically, HUD will 
compare the FEMA identity, income, family size, and benefit data to 
tenant-reported data included in HUD's system of records known as: (1) 
The Tenant Housing Assistance and Contract Verification Data (HUD/H-
11), last published at 62 FR 11909 (March 13, 1997); and (2) the Public 
and Indian Housing Information Center (HUD/PIH-4), last published at 67 
FR 20986 (April

[[Page 36542]]

29, 2002). The tenant comparisons will identify, based on criteria 
established by HUD, tenants whose incomes, family size, address, or 
benefit levels, etc., that require further verification to determine if 
the tenants received appropriate levels of rental assistance. The 
program also provides for the verification of the matching results and 
the initiation of appropriate administrative or legal actions.

A. Income Verification

    Any match (i.e., a ``hit'') will be further reviewed by HUD, the 
POA, or the HUD Office of Inspector General (OIG) to determine whether 
the income reported by tenants to the POA is correct and complies with 
HUD and POA requirements. Specifically, current or prior wage 
information and other data will be sought directly from employers.

B. Administrative or Legal Actions

    Regarding all the matching described in this notice, HUD 
anticipates that POAs will take appropriate action in consultation with 
tenants to: (1) Resolve income disparities between tenant-reported and 
independent income source data, and (2) use correct income amounts in 
determining housing rental assistance.
    POAs must compute the rent in full compliance with all applicable 
occupancy regulations. POAs must ensure that they use the correct 
income and correctly compute the rent.
    The POAs may not suspend, terminate, reduce, or make a final denial 
of any housing assistance to any tenant as the result of information 
produced by this matching program until: (a) The tenant has received 
notice from the POA 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, POAs will resolve 
income discrepancies in consultation with tenants.
    Additionally, serious violations, which POAs, HUD Program staff, or 
HUD OIG verify, should be referred for full investigation and 
appropriate civil and/or criminal proceedings.

IV. Records To Be Matched

    This computer matching program, to the extent that it involves the 
use of SSA, IRS or SWICA data is fully described at 69 FR 11033. With 
respect to FEMA data, the match will involve tenant records obtained 
directly from POAs and subsidized multifamily projects included in the 
Tenant Housing Assistance and Contract Verification Data (HUD/H-11) and 
the Public and Indian Housing Information Center (HUD/PIH-4). These 
records contain information about individuals who are participants in 
the Federal low income and Section 8 housing assistance programs. 
Specifically, the tenant records include these data elements: (1) SSNs 
for each family member; (2) family control number to identify each 
tenant with a particular family; (3) Head of Household Indicator; (4) 
Last Name, First Name, Middle Initial, and Address for household; (5) 
Sex; (6) Birth Date; (7) Reported Income by source, description and 
amount; (8) Program Code; and (9) Recertification Date.
    The FEMA will provide HUD with extract files from the FEMA/REG-2 
system. The notice for this system was published at 69 FR 65615. The 
disclosure from FEMA/REG-2 will be made in accordance with routine use 
``a(1).'' HUD will match the tenant records to the FEMA records on 
disaster assistance applicants to compare tenant reported income.
    For matched employees SSNs (i.e., ``hits''), HUD will extract the 
following information from FEMA/REG-2: SSN, Date of Birth, Name, Sex, 
Income Information, Household Size and Composition, Address, Insurance 
Coverage Information, and Temporary Housing Assistance Eligibility 
Determinations.

V. Period of the Match

    The computer matching program will be conducted according to an 
agreement between HUD and the FEMA. 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 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.

    Dated: June 20, 2006.
Bajinder N. Paul,
Deputy Chief Information Officer for IT Operations.
[FR Doc. E6-10070 Filed 6-26-06; 8:45 am]

BILLING CODE 4210-67-P