[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37804-37806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18355]
[[Page 37803]]
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Part III
Department of Housing and Urban Development
_______________________________________________________________________
Public and Indian Housing, Rental Assistance Programs: Procedures for
Verifying the Social Security and Supplemental Security Income of
Applicants and Participants; Notice
Federal Register / Vol. 61, No. 140 / Friday, July 19, 1996 /
Notices
[[Page 37804]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4075-N-01]
Office of the Assistant Secretary for Public and Indian Housing;
New Procedures for Verifying the Social Security and Supplemental
Security Income of Applicants and Participants: HUD's Rental Assistance
Programs Administered by Public Housing Agencies and Indian Housing
Authorities
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice of New Procedures for Verifying the Social Security and
Supplemental Security Income of Applicants and Participants.
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SUMMARY: This notice informs public housing agencies and Indian housing
authorities, collectively referenced as housing agencies (HAs), of: (1)
new procedures to verify social security (SS) and supplemental security
income (SSI) information for rental assistance applicants and
participants, (2) HUD policy changes concerning SS and SSI
verification, (3) implementation plans, and (4) actions that HAs may
take now to help promote effective implementation of the new
procedures. HUD published a related notice of matching program at 60 FR
21548; May 2, 1995.
EFFECTIVE DATES: HUD plans to implement the SS and SSI computer
matching gradually over a period of about 1 year on a State-by-State
basis. Implementation started in June 1996 in the States of Alaska,
Idaho, Oregon and Washington. HUD also plans to provide HAs with about
1 month's notice of plans to implement the SS and SSI computer matching
in the selected State(s)/HAs. Current income verification policies and
procedures remain in effect until each HA implements the new
procedures.
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: David L. Decker, Director, Computer
Matching, Office of the Public and Indian Housing Comptroller, Room
5156, Department of Housing and Urban Development, 451 Seventh Street,
SW, Washington, DC 20410, telephone number (202) 708-0099, extension
4273. (These telephone numbers are not toll-free.) A telecommunications
device for hearing- and speech-impaired persons (TTY) is available at
1-800-877-8339 (Federal Information Relay Services). (This is a toll-
free number.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The information collection requirements contained in this notice
have been reviewed by the Office of Management and Budget under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned
approval number 2577-0083, which expires on August 31, 1997.
Background
HAs administer the Public Housing Program and the Section 8
Programs that provide rental assistance to low income families under
regulations issued by HUD's Office of the Assistant Secretary for
Public and Indian Housing. Generally, tenants pay 30 percent of their
income for rent. Under Section 8, the difference between the market
rent and the tenant's payment constitutes a rental subsidy. Because
household income is the major factor in determining eligibility for,
and the amount of, rental subsidy, HUD has required HAs to verify
applicants' incomes at the time of initial application for assistance
(certification) and annually thereafter (recertification). All types of
income must be verified including, e.g., wages, SS and SSI.
Present Procedures to Verify SS and SSI
The Social Security Administration (SSA) currently provides HAs
with information needed to verify SS and SSI when HAs request the
information. This is done using a mark-sense card system developed by
the SSA. Under this system, HAs request SS and SSI information from the
SSA by manually marking personal identifiers of tenants, i.e., the
social security number (SSN), on a card and mailing the mark-sense card
to a local SSA office for processing.
The SSA then processes the mark-sense card and sends a computer-
produced report (called a Third Party Query Report) to the HA showing
the SS and SSI benefits of the applicant or tenant. SSA has about 100
card readers nationwide that it considers obsolete and plans to phase
out. HAs presently are one of the primary users of SSA's mark-sense
card operations.
HAs generally send mark-sense cards to the SSA only for applicants
or tenants who report SS or SSI to the HA. Instead of submitting mark-
sense cards, some HAs obtain SS and SSI information from local SSA
offices where SSA staff use an automated system to query information by
SSN. HAs compare the SS and SSI information obtained from the SSA to
the tenant-reported income. HA staff include SSA documents received
from the tenant and SSA's Third Party Query report in the tenants' case
files.
HUD's development in recent years of an automated database, known
as the Multifamily Tenant Characteristics System (MTCS), facilitates
new procedures to verify tenant-reported income data. HAs provide HUD
with the tenant data, i.e., personal identifiers and income data, that
is included in the MTCS. HUD issued a final rule (60 FR 11626; March 2,
1995) requiring HAs to transfer tenant data to MTCS electronically.
HUD also issued Notice 96-20 (HA) on April 18, 1996, informing HAs
of a reduction in Section 8 administrative fees for failure to
electronically submit data for Form HUD-50058, Family Report, and Form
HUD-50058-FSS, Family Self-Sufficiency Addendum, for Section 8
participants monthly or quarterly as required.
New Procedures to Verify SS and SSI
Monthly HUD will transmit to SSA, via a secure high-speed data
line, personal identifiers for tenants scheduled to recertify 3 months
before the tenants' scheduled annual recertification date. SSA does the
computer matching of personal identifiers and provides HUD with SS and
SSI information which HUD compares to the tenant-reported SS and SSI
information shown in the MTCS. At least 2 months before the tenants'
recertification, HUD will provide HAs with SS and SSI information
needed to do annual recertifications of tenants, i.e., to determine
eligibility and the rental assistance amounts.
HUD is adopting these procedures based on comments received from
HAs that participated in a pilot project. This is a revision of what
HUD initially planned--doing the computer matching for
(re)certifications completed in the prior month, and reporting to HAs
only SS and SSI information for tenants with income disparities.
The processing and reporting timeframes cited in the prior
paragraph approximate those currently used by many HAs for annual
recertifications.
[[Page 37805]]
However, HAs will receive the information directly from HUD--not from
SSA. Initially, HUD will send computer-produced reports showing SS and
SSI amounts to HAs that are similar to the reports HAs currently
receive from SSA. HUD plans to provide for electronic transmission,
instead of paper reports, later in calendar year 1996.
The planned computer matching procedures as currently designed
provide SS and SSI information on a pre-recertification basis. The
procedures do not provide HAs with SS and SSI information on a pre-
certification basis for initial applicants for rental assistance.
Besides providing a report similar to the SSA's Third Party Query
Report, HUD will also provide a report that shows SS and SSI income
disparities, and request that the HAs resolve the disparities. This
will involve confirming data validity, evaluating the potential for
unreported or underreported income, providing the tenant due process,
and taking appropriate administrative or legal actions.
HUD will provide HAs with a ``Guide for Verifying Computer Matching
Results and Taking Enforcement Actions.'' This Guide describes the
computer matching program, includes sample computer-produced outputs,
and describes procedures for verifying computer matching results and
taking enforcement actions. The Guide also provides HAs substantial
discretion in taking enforcement actions on abuses identified. HUD will
distribute the Guide to HAs about one month before implementation. See
the ``Plans for Large-Scale Implementation of SS and SSI Computer
Matching and Income Verification'' section below.
Improved Efficiency and Effectiveness of New Procedures to Verify
SS and SSI
A pilot demonstration has shown that the new procedures for
verifying SS and SSI benefit HAs, HUD and SSA by improving the
efficiency and effectiveness of income verification. Efficiency will be
improved by using electronic data transfer and computer matching,
instead of preparing mark-sense cards manually and sending them by mail
to the SSA. Further, use of the new SS and SSI verification techniques
will aid the SSA in planning for the elimination of mark-sense card
operations and in reducing workload demands on local SSA Offices.
The effectiveness of the income verification process will be
improved by detecting unreported or underreported SS and SSI.
This will be done by comparing personal identifiers of all
household members to SSA's data. In contrast, under present procedures
HAs verify only the SS and SSI that individuals report. HA actions on
unreported or underreported income will help deter abuses in HUD
programs.
Policy Change
In implementing the new SS and SSI verification procedures, HAs
will use HUD-provided SS and SSI computer matching results, instead of
the SSA's mark-sense card and automated inquiry processing. The
completeness and accuracy of the computer matching results will depend
significantly on the quality of MTCS data that HAs provide to HUD.
Therefore, the completeness and accuracy of the MTCS data will be of
utmost importance.
HUD will discontinue its requirement for pre-verification of SS and
SSI information for new applicants. HAs will be required to request and
use tenant-provided information on SS and SSI, that the tenants certify
as correct. Because the new procedures will not provide for verifying
the SS and SSI before a new applicant's certification for rental
assistance, HAs must request that new applicants provide documents that
tenants have in their possession showing the monthly amount of SS and
SSI they receive. The documents may include recent benefit letters [the
preferred document], SSA Form 1099's, award letters, other letters from
SSA that show benefit amounts, and bank statements showing net
payments. HAs must not request that tenants obtain documents from SSA.
HUD expects that tenant-provided documents generally will provide
sufficient information to determine initial eligibility and benefit
amounts. The information will be confirmed on a post-certification
basis with computer matching.
HUD recognizes that pre-verification of SS and SSI information is
beneficial in providing correct information for use in rental
assistance determinations. However, HUD's MTCS collects data on new
applicants after a certification or recertification occurs. Therefore,
MTCS does not contain information needed for matching to SSA data on a
pre-certification basis for new applicants. MTCS retains information on
prior certifications or recertifications.
Regarding annual recertifications, HAs may rely on the HUD-provided
information as sufficient documentation to verify tenant-reported SS
and SSI income. HAs should not request other documents from tenants
concerning SS and SSI if the HA has the HUD-provided SS and SSI
information for the applicable (re)certification period.
Plans for Large-Scale Implementation of SS and SSI Computer Matching
and Income Verification
HUD plans to implement the SS and SSI computer matching gradually
over a period of about 1 year on a State-by-State basis. HUD also plans
to provide HAs with about 1-month's notice of plans to implement the SS
and SSI computer matching in the selected State(s)/HAs. In addition,
HUD will provide each HA with copies of the ``Guide for Verifying
Computer Matching Results and Taking Enforcement Actions'' at training
sessions in selected States.
Recognizing that some HAs have not always reported data to MTCS,
HUD anticipates that some HAs during the next year will need to use
present procedures to verify SS and SSI. However, HAs must only use
those procedures when absolutely necessary, i.e., when HUD-provided
information is not available because of incomplete MTCS reporting.
HUD's goal is to eliminate completely HAs' use of mark-sense cards by
September 30, 1997. Further, except for very low volume of processing
to resolve tenant disputed SS and SSI amounts, HA requests for
automated SS and SSI inquiries should also be eliminated by that date.
After HAs start receiving HUD-produced computer matching results,
HAs must discontinue the practices of submitting to the SSA mark-sense
cards or requesting SSA automated queries of SS and SSI data. HAs
should only be contacting SSA staff to request assistance in resolving
SS and SSI information that the tenant disputes.
SSA Services During the Transition to Computer Matching
When HUD, due to incomplete MTCS data, cannot provide computer-
produced SS and SSI information to HAs for recertifications, the SSA
will provide HAs with SS and SSI verification services using past
practices (i.e., mark sense cards or local SSA Office queries). SSA
also will help HAs in resolving issues where the tenant disputes the
amount of SS or SSI.
HUD Hotline
HUD will operate a telephone Hotline during the period of the
transition to answer HA questions concerning the implementation. The
Hotline number is (202) 708-0099.
Actions HAs Should Take to Help Promote Effective Implementation of
SS and SSI Computer Matching and Income Verification
HUD encourages all HAs to take the following actions to promote
effective
[[Page 37806]]
implementation of SS and SSI computer matching and income verification:
(1) submit data electronically timely as required by the final rule
published at 60 FR 11626; March 2, 1995, (2) ensure that the correct
last name, SSN, and birth date are submitted electronically to HUD for
all tenants required to provide SSNs, and (3) ensure that tenant-
reported SS and SSI information are entered in the appropriate data
fields.
Dated: July 5, 1996.
Michael B. Janis,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 96-18355 Filed 7-18-96; 8:45 am]
BILLING CODE 4210-33-P
