Implementation of the Privacy Act of 1974, as Amended; Amended System of Records Notice, Asset Disposition and Management System (ADAMS), 55477-55479 [2016-19870]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 81, Number 161 (Friday, August 19, 2016)]
[Notices]
[Pages 55477-55479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19870]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5921-N-12]


Implementation of the Privacy Act of 1974, as Amended; Amended 
System of Records Notice, Asset Disposition and Management System 
(ADAMS)

AGENCY: Office of Housing, HUD.

ACTION: Amended system of records notice.

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SUMMARY: In accordance with the requirements of the Privacy Act of 1974 
(5 U.S.C. 552a (e)(4)), as amended, the Department's Office of Housing 
propose to amend and reissue a current system of records notice (SORN): 
Asset Disposition and Management System (ADAMS). The notice amendment 
includes administrative updates to refine details published under the 
categories of individuals covered, categories of records, authority for 
maintenance, storage, safeguards, retention and disposal, system 
manager and address, notification procedures, records access, 
contesting records procedures, and records source categories. These 
sections are amended to refine previously published information about 
the system of records. The existing scope, objectives, and business 
processes in place for the program remain unchanged. The amended SORN 
deletes and supersedes the ADAMS SORN published in the Federal Register 
on February 26, 2014 at 79 FR 10829-10830. The updated notice will be 
included in the Department's inventory of SORNs.

DATES: Effective Date: This notice action shall be effective 
immediately, which will become effective September 19, 2016.
    [Comments Due Date]: September 19, 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. 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: Helen Goff Foster, Chief Privacy 
Officer/Senior Agency Official for Privacy, 451 Seventh Street SW., 
Room 10139, Washington, DC 20410, telephone number 202-402-6838 (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: This notice updates and refines previously 
published information pertaining to ADAMs in a clear and easy to read 
format. The amended notice conveys administrative updates to the 
notice's categories of individuals covered, categories of records, 
routine uses, storage, safeguards, retention and disposal, system 
manager and address, notification procedures, records access and 
contesting procedures, and records source captions. 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 
the 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. This 
notice demonstrates the Department's focus on industry best practices 
and laws that protect interest such as personal privacy and law 
enforcement records from inappropriate release. This notice 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 for the 
records, the routine uses made of the records, and the types of 
exemptions in place for the records. The notice also includes the 
business address of the HUD officials who will inform interested 
persons of how they may gain access to and/or request amendments to 
records pertaining to themselves.
    The amended notice does not meet threshold requirements set forth 
by Privacy Act, 5 U.S.C. 552a(r). Therefore, a report was not submitted 
to the Office of Management and Budget (OMB), the Senate Committee on 
Homeland Security and Governmental Affairs, and the House Committee on 
Oversight and Government Reform.

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

    Dated: August 12, 2016.
Helen Goff Foster,
Chief Privacy Officer/Senior Agency Official for Privacy.
System of Records No.:
    HSNG.SF/HUF.01.

SYSTEM NAME:
    Asset Disposition and Management System (ADAMS)--P260.

SYSTEM LOCATION:
    The physical system is hosted at the contractor's primary and 
disaster recovery sites: Yardi Systems, Inc., 430 South Fairview 
Avenue, Santa Barbara, CA 93117, Sunguard, 1001 E. Campbell Road, 
Richardson, TX 75081, and CenturyLink, 200 N. Nash Street, El Segundo, 
CA 90245. The above locations host the Department's design and 
development, testing and production, and disaster recovery instances 
for ADAMS. ADAMS is accessible at workstations located at the following 
locations: Department of Housing and Urban Development Headquarters, 
451 Seventh Street SW., Washington, DC 20410, and at HUD field and 
regional office locations: \1\ HUD Atlanta Homeownership Center, Five 
Points Plaza, 40 Marietta Street, Atlanta, GA 30303, HUD Philadelphia 
Homeownership Center, The Wanamaker Building, 100 Penn Square East, 
Philadelphia, PA 19107, HUD Denver Homeownership Center, Processing and 
Underwriting, 20th floor, 1670 Broadway, Denver, CO 80202, HUD Santa 
Ana Homeownership Center, Santa Ana Federal Building, 34 Civic Center 
Plaza, Room 7015, Santa Ana, CA 92701.
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    \1\ https://portal.hud.gov/hudportal/documents/huddoc?id=append2.pdf.
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CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by ADAMS are: (1) Homebuyers (mortgagors) of 
REO properties, (2) successful bidders (purchasers) of HUD Real Estate 
Owned (REO) properties, (3) HUD Single Family Property Disposition 
Program Management and Marketing (M&M) contractors. Successful bidders 
are referred to as purchasers on the form HUD-2548, Sales Contract 
Property Disposition Program, and include the following groups: (1) 
FHA-approved real estate brokers, (2) Investors, (3) Registered, 
eligible non-profit organizations, (4) Public housing agencies, and (5) 
Other government agencies (State and local). The M&M

[[Page 55478]]

contractor group include: (1) Mortgagee Compliance Managers (MCM), (2) 
Field Service Managers (FSM), and (3) Asset Managers (AM).

CATEGORIES OF RECORD IN THE SYSTEM:
    Categories of records in the system include:
    (1) Homebuyers Information: Name, address, Social Security number 
(SSN), and race/ethnicity characteristics. This information is also 
gathered by non-profit and government submissions.
    (2) Successful Bidders Information: Business name and address, 
Employer Identification Number (EIN), Tax Identification Number (TIN), 
or SSN, broker's phone number, SAMS name and address identification 
number (NAID), FHA case number, property address, date purchaser(s) 
signed sales contract (Form HUD-9548), date sales contract accepted by 
HUD, purchase price; purchaser type, appraisal information, tax 
payments, sales offer information, HUD-1, contract information, vendor 
information, and financial transactions.
    (3) Additional Nonprofit and Government (state and local) 
Information: Internal Revenue Service (IRS) letters for determination 
of nonprofit status, articles of Organization, mortgage notes, W-9, 
SAMS-1111, property report documentation (Median Income certification).
    (4) Management and Marketing (M&M) Contractors Information: 
Business name and address; EIN, TIN, or SSN; phone number; SAMS NAID; 
FHA case number; property address; date purchaser(s) signed sales 
contract (Form HUD-9548); date sales contract accepted by HUD; purchase 
price; purchaser type; mortgage notes, W-9, SAMS-1111, property report 
documentation (Median Income certification) and limited information 
about the homebuyers: Name, address, SSN, and race/ethnicity 
characteristics.
    In addition, ADAMS contains files on property appraisals, tax 
payments, purchase sales offer information, HUD-1, purchase contract 
information, vendor information, and property preservation and 
protection invoice information, FHA property listings, and property 
agent contact information.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    National Housing Act as amended (12 U.S.C. 1702 et seq.), Title 24 
Code of Federal Regulations Part 200.194, Placement of Nonprofit 
Organization on Nonprofit Organization Roster, The Housing and 
Community Development Act of 1987, 42 U.S.C. 3543, National Housing 
Act, Section 235(b), Public Law 479, 48 Stat. 12 U.S.C. 1701 et seq., 
Section 165 (a) of the Housing and Community Development Act of 1987, 
Public Law 100-242, Section 904 of the Stewart B. McKinney Homeless 
Assistance Amendments Act of 1988, Public Law 100-628.

PURPOSE:
    ADAMS is a case management system for HUD owned and HUD managed 
single-family properties under HUD's Property Disposition and REO 
Discount Sales Programs. ADAMS was introduced into production in 2010. 
ADAMS supports HUD Headquarters and Homeownership Center (HOC) staff 
and HUD's Management and Marketing (M&M) contractors to track single-
family properties from their acquisition by HUD through the steps 
necessary to resell the properties. In addition, M&M contractors manage 
the HUD Property Disposition Sales Program and the REO Discount Sales 
Programs (Good Neighbor Next Door (GNND), Asset Control Area (ACA) 
Sales, and $1 Homes). ADAMS is used to:
     Obtain, store, and display case-level information about 
properties acquired by or in custody of HUD.
     Track events and information describing the status of real 
property from the date of conveyance to the Department through several 
stages of management, marketing, and disposition, to final 
reconciliation of sale proceeds.
     Retain data relative to contracts, contractors, and 
vendors that support the property disposition program.
     Calculate property management, marketing, and incentive 
fees earned by M&M contractors, closing agents, and special property 
inspection (SPI) contractors, and generate disbursement transmittals.
     Calculate M&M contractor payment incentives and 
disincentives.
     Generate disbursement transmittals for payment of other 
property-related expenses such as pass-through expenses and property 
taxes.
     Verify eligibility to participate in the REO program.
     Validate that no conflicts of interest exist among non-
profit/other government agencies' board members, employees, business 
partners, and homebuyers.
     Validate that discounted HUD-REO homes were sold to 
eligible buyers.
     Determine that participating agencies have not exceeded 
profit limits on the re-sale of HUD-REO homes purchased through the 
discount program.
     Support Good Neighbor Next Door Sales Programs (GNND) 
compliance control tasks for pre-sales/pre-registration, sales/pre-
closing, and post-closing.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSE OF SUCH USES:
    In addition to those disclosures generally permitted under 5 U.S.C. 
Section 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 
such disclosures are compatible with the purpose for which the records 
in this system were collected, as set forth by Appendix I \2\--HUD's 
Routine Uses Inventory published in the Federal Register.
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    \2\ https://portal.hud.gov/hudportal/documents/huddoc?id=routine_use_inventory.pdf.
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    2. To General Accounting Office (GAO) for audit purposes.
    3. To Management and Marketing contractors for processing the sale 
of HUD Homes.
    4. To Federal Bureau of Investigation (FBI) to investigate possible 
fraud revealed in the course of servicing efforts to allow HUD to 
protect the interest of the Secretary.
    5. 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;
    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.
    6. To the National Archives and Records Administration (NARA) or to 
the General Services Administration for records management inspections 
conducted under 44 U.S.C. 2904 and 2906.
    7. To a congressional office from the record of an individual in 
response to an inquiry from that congressional office

[[Page 55479]]

made at the request of the individual to whom the record pertains.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
Storage:
    Records in this system are stored electronically in secure 
facilities. Electronic files are stored in case files on secure 
servers. Electronic files are replicated at a disaster recovery offsite 
location in case of loss of computing capability or other emergency at 
the primary facility. ADAMS does not have paper records.

RETRIEVABILITY:
    Records are retrieved using computer search by the FHA case number, 
property address (including other geographical characteristics such as 
contract area, property state/city/county/zip code, Homeownership 
Center), or contractor ID or name, or non-profit/government agency 
name.

SAFEGUARDS:
    Records are maintained in a secured computer network. Access is 
limited to authorized personnel. ADAMS access requires two levels of 
logins to access the system. The first login uses HUD Siteminder system 
to verify that the user has active HUD authorization. The second login 
uses ADAMS internal security system to set permissions for data access 
and system functionality.

RETENTION AND DISPOSAL:
    In accordance with General Records Schedule 1.1, Financial 
Management and Reporting Records, Items 010 and 011, the records are 
maintained for six years or when business use ceases. Paper records are 
not in use. Backup and Recovery digital media will be destroyed or 
otherwise rendered irrecoverable per NIST SP 800-88 ``Guidelines for 
Media Sanitization'' (September 2006).

SYSTEM OWNER AND ADDRESS:
    Ivery Himes, Director, Office of Single Family Asset Management, 
Room 9178, 451 Seventh Street SW., Washington, DC 20410.

NOTIFICATION AND RECORD ACCESS PROCEDURES:
    For information, assistance, or inquiry about the existence of 
records, contact Helen Goff Foster, Chief Privacy Officer/Senior Agency 
Official for Privacy, 451 Seventh Street SW., Room 10139, Washington, 
DC 20410, telephone number (202) 402-6838. 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, meaning 
that you must provide 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:
    a. Explain why you believe HUD would have information on you.
    b. Identify which Office of HUD you believe has the records about 
you.
    c. Specify when you believe the records would have been created.
    d. Provide any other information that will help the FOIA staff 
determine which HUD office may have responsive records.
    If your request is seeking records pertaining to another living 
individual, you must include a statement from that individual 
certifying their agreement for you to access their records. Without the 
above information, the HUD FOIA Office 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, Procedures for 
Inquiries. Additional assistance may be obtained by contacting Helen 
Goff Foster, Chief Privacy Officer/Senior Agency Official for Privacy, 
451 Seventh Street SW., Room 10139, Washington, DC 20410, or the HUD 
Departmental Privacy Appeals Officers, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street SW., 
Washington, DC 20410.

RECORD SOURCE CATEGORIES:
    Purchasers, Non-profit and State, local Government entities, M&M 
contractors, and HUD employees, HUD Form 9548.

EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:
    None.

[FR Doc. 2016-19870 Filed 8-18-16; 8:45 am]
BILLING CODE 4210-67-P