Privacy Act of 1974; System of Records, 14634-14637 [2023-04830]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 88, Number 46 (Thursday, March 9, 2023)]
[Notices]
[Pages 14634-14637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04830]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7077-N-05]


Privacy Act of 1974; System of Records

AGENCY: Office of Administration, HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974, as 
amended, the Department of the Housing and Urban Development (HUD) is 
issuing a public notice of its intent to modify the Multifamily Housing 
Privacy Act system of records for the Comprehensive Servicing and 
Monitoring System (CSMS). The modification will clarify the location of 
records; the system manager; authority for maintenance of the system; 
and routine uses of records in the system.

DATES: Comments will be accepted on or before April 10, 2023. This 
proposed action will be effective immediately upon publication. Routine 
uses will become effective on the date following the end of the comment 
period unless comments are received which result in a contrary 
determination.

ADDRESSES: You may submit comments, identified by docket number or by 
one of the following methods:
    Federal e-Rulemaking Portal: https://www.regulations.gov. Follow the 
instructions provided on that site to submit comments electronically.
    Fax: 202-619-8365.
    Email: [email protected].
    Mail: Attention: Privacy Office; LaDonne White, Chief Privacy 
Officer; The Executive Secretariat; 451 Seventh Street SW, Room 10139; 
Washington, DC 20410-0001.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov. including any 
personal information provided.
    Docket: For access to the docket to read background documents or 
comments received go to https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: LaDonne White; 451 Seventh Street SW, 
Room 10139; Washington, DC 20410-0001; telephone number 202-708-3054 
(this is not a toll-free number). HUD welcomes and is prepared to 
receive calls from individuals who are deaf or hard of hearing, as well 
as individuals with speech or communication disabilities. To learn more 
about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION: The Department of Housing and Urban 
Development (HUD), Office of Finance and Budget maintains the 
``Comprehensive Servicing and Management System'' (CSMS). CSMS is a 
mixed financial system that is used for property management and loan 
servicing. HUD is publishing this revised notice to; update system 
location; system manager; authorities; safeguards; routine uses; to 
reflect updated information in the sections being revised. The 
modification of the system of records will have no undue impact on the 
privacy of individuals and updates follow the records collected.
    1. Location--Added the location of backup records.
    2. System Manager--Identified new system manager expected to 
operate under this system.
    3. Authorities--Clarified authorities governing Social Security 
number collection. requirements, which is the United States Housing and 
Community Development Act of 1987, 42 U.S.C. 3543(a).
    4. Administrative and Technical Safeguards--Clarified or updated 
information about the applicable

[[Page 14635]]

safeguards to records. Describes role-based access and annual 
certification.
    5. Routine Use--Incorporated three newly established routine uses 
pertaining to sharing of information externally for data breach 
remediation purposes; and matching program for use by the Department of 
the Treasury, Bureau of the Fiscal Service (Fiscal Service), Do Not Pay 
Business Center (DNP), to detect suspected instances of programmatic 
fraud, waste, and abuse. Streamlined and added specific routine uses 
that are applicable to this system of record rather than relying on 
HUD's previously published blanket routine uses notice.

SYSTEM NAME AND NUMBER:
    HUD/DEPT-03 Comprehensive Servicing and Management System.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    Records are maintained at Dynaxis, 1911 Tech Rd, Silver Spring, MD 
20904; at a secure data center at the Disaster Recovery Site, 8180 
Green Meadows Drive North, Lewis Center, OH 43035-0001.

SYSTEM MANAGER(S):
    Cynthia Tilton, Office of Multifamily Asset Management and 
Portfolio Oversight, HUD HQ 451 7th St. SW, Washington, DC 20410.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The National Housing Act, 12 U.S.C 1701 et seq., authorizes the 
loan programs that are serviced by CSMS; the United States Housing Act 
of 1937, as amended, 42 U.S.C. 1437 et seq.; The Housing and Community 
Development Amendments of 1981, 12 U.S.C. 2294a; the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 Section 904 as 
amended, 42 U.S.C. 3544; the United States Housing and Community 
Development Act of 1987, Section 165, 42 U.S.C. 3543(a), permits the 
participants to submit their SSNs as a condition of eligibility.

PURPOSES OF THE SYSTEM:
    CSMS is a loan servicing, property management, and accounting 
system. The purpose of the system is to bill and collect funds owed to 
HUD/FHA, to provide program information about loan repayment and 
status, to manage investment of reserve for replace funds, to process 
and reimburse property managers or vendors for expenses incurred in 
managing multifamily properties owned by the Department, to track lease 
information for tenants living in HUD-owned properties, and to account 
for all transactions on this portfolio. CSMS is a subsidiary ledger to 
the FHA's general ledger. CSMS provides servicing for loans acquired 
through the payment of an insurance claims and loans from the Mark to 
Market and Demonstration preservation programs.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Mortgagors, billing agents, vendors who are local businesses 
involved in property management or inspection and tenants, federal 
employees.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Property names; Addresses; Phone numbers; Email addresses; 
Borrower's TIN/Social Security Numbers; Financial information 
(institutional information, routing, account numbers and account type; 
Reserve for Replacement escrow accounts; accounting data including 
debits and credits to HUD accounts based on transaction events; 
Collection history; Mortgagee-in-Possession activity; loan termination 
data; HUD-Owned Property/Tenant: Names; addresses; Email addresses; 
Social Security Number; Marital status; Gender; Bid packages; Closing 
activities; Vendor/business partner (financial information, TIN/SSN, 
routing, account numbers, small business identifier.

RECORD SOURCE CATEGORIES:
    Records in the system are obtained from HUD employees and their 
contractors who deal directly with the mortgagors, billing agents, 
vendors, and tenants. Information is also obtained from Integrated Real 
Estate Management System. All other data is collected from FHA 
Subsidiary ledger.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND PURPOSES OF SUCH USES:
    (A) To a congressional office from the record of an individual, in 
response to an inquiry from the congressional office made at the 
request of that individual.
    (B) To Federal agencies, non-Federal entities, their employees, and 
agents (including contractors, their agents or employees; employees or 
contractors of the agents or designated agents); or contractors, their 
employees or agents with whom HUD has a contract, service agreement, 
grant, cooperative agreement, or computer matching agreement for the 
purpose of: (1) Detection, prevention, and recovery of improper 
payments; (2) detection and prevention of fraud, waste, and abuse in 
major Federal programs administered by a Federal agency or non-Federal 
entity; and (3) detection of fraud, waste, and abuse by individuals in 
their operations and programs, but only to the extent that the 
information shared is necessary and relevant to verify pre-award and 
prepayment requirements prior to the release of Federal funds or to 
prevent and recover improper payments for services rendered under 
programs of HUD or of those Federal agencies and non-Federal entities 
to which HUD provides information under this routine use.
    (C) To contractors, grantees, experts, consultants, Federal 
agencies, and non-Federal entities, including, but not limited to, 
State and local governments and other research institutions or their 
parties, and entities and their agents with whom HUD has a contract, 
service agreement, grant, cooperative agreement, or other agreement, 
for the purposes of statistical analysis and research in support of 
program operations, management, performance monitoring, evaluation, 
risk management, and policy development, or to otherwise support the 
Department's mission. Records under this routine use may not be used in 
whole or in part to make decisions that affect the rights, benefits, or 
privileges of specific individuals. The results of the matched 
information may not be disclosed in identifiable form.
    (D) To contractors, grantees, experts, consultants and their 
agents, or others performing or working under a contract, service, 
grant, cooperative agreement, or other agreement with HUD, when 
necessary to accomplish an agency function related to a system of 
records. Disclosure requirements are limited to only those data 
elements considered relevant to accomplishing an agency function.
    (E) To appropriate federal, state, local, tribal, or other 
governmental entities, with the approval of the Chief Privacy Officer, 
when HUD is aware of a need to use relevant data for purposes of 
testing new technology.
    (F) To appropriate agencies, entities, and persons when (1) HUD 
suspects or has confirmed that there has been a breach of the system of 
records, (2) HUD has determined that as a result of the suspected or 
confirmed breach there is a risk of harm to individuals, HUD (including 
its information systems, programs, and operations), the Federal 
Government, or national security; and (3) 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 
breach or to prevent, minimize, or remedy such harm.
    (G) To another Federal agency or Federal entity when HUD determines

[[Page 14636]]

that information from this system of records is reasonably necessary to 
assist the recipient agency or entity in (1) responding to a suspected 
or confirmed breach or (2) preventing, minimizing, or remedying the 
risk of harm to individuals, the recipient agency or entity (including 
its information systems, programs, and operations), the Federal 
Government, or national security, resulting from a suspected or 
confirmed breach.
    (H) To appropriate Federal, State, local, tribal, or other 
governmental agencies or multilateral governmental organizations 
responsible for investigating or prosecuting the violations of, or for 
enforcing or implementing, a statute, rule, regulation, order, or 
license, where HUD determines that the information would assist in the 
enforcement of civil or criminal laws when such records, either alone 
or in conjunction with other information, indicate a violation or 
potential violation of law.
    (I) To a court, magistrate, administrative tribunal, or arbitrator 
in the course of presenting evidence, including disclosures to opposing 
counsel or witnesses in the course of civil discovery, litigation, 
mediation, or settlement negotiations, or in connection with criminal 
law proceedings; when HUD determines that use of such records is 
relevant and necessary to the litigation and when any of the following 
is a party to the litigation or have an interest in such litigation: 
(1) HUD, or any component thereof; or (2) any HUD employee in his or 
her official capacity; or (3) any HUD employee in his or her individual 
capacity where HUD has agreed to represent the employee; or (4) the 
United States, or any agency thereof, where HUD determines that 
litigation is likely to affect HUD or any of its components.
    (J) To any component of the Department of Justice or other Federal 
agency conducting litigation or in proceedings before any court, 
adjudicative, or administrative body, when HUD determines that the use 
of such records is relevant and necessary to the litigation and when 
any of the following is a party to the litigation or have an interest 
in such litigation: (1) HUD, or any component thereof; or (2) any HUD 
employee in his or her official capacity; or (3) any HUD employee in 
his or her individual capacity where the Department of Justice or 
agency conducting the litigation has agreed to represent the employee; 
or (4) the United States, or any agency thereof, where HUD determines 
that litigation is likely to affect HUD or any of its components.
    (K) To the IRS for reporting of payments, forgiveness of debt, and 
property sales under section 6109 of the Internal Revenue Code.
    (L) To banks holding escrow monies for the purpose of establishing 
interest bearing accounts and reporting of interest payments to the IRS 
under section 6109 of the Internal Revenue Code.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic and paper records.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Borrowers Name and TIN/SSN.

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:
    Destroy 6 years after final payment or cancellation, but longer 
retention is authorized if required for business use. Destroy 3 years 
after lease termination, lapse, reassignment, rejection of application, 
cancellation of lease, or conclusion of litigation, as applicable.
    CSMS Disposition information is:
     HUD Schedule 10, item 7, NC1-207-78-12, item 7
     GRS 3.2, item 51, DAA-GRS-2013-0006-0008
     GRS 5.2, item 20, DAA-GRS-2017-0003-0002
     GRS 3.2, item 30, DAA-GRS-2013-0006-0003
     GRS 3.2, item 40 and 41, Item 40_DAA-GRS-2013-0006-0005 
and Item 41_DAA-GRS-2013-0006-0006
     GRS 3.1, item 10 and 11, DAA-GRS-2013-0005-0006 and DAA-
GRS-2013-0005-0007
     GRS 3.1, item 51, DAA-GRS-2013-0005-003

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Access to CSMS is by password and user ID and limited to authorized 
users. Paper records are maintained in locked drawer or in file 
cabinets at 11911 Tech Road, Silver Spring, MD 20904. Role-based access 
levels or assignment roles are restricted to those who have a need-to-
know. When first gaining access to CSMS and on an annual basis, all 
users must agree to the systems ``Rules of Behavior'' which specify 
handling of personal information and any physical records.

RECORD ACCESS PROCEDURES:
    Individuals seeking to determine whether this System of Records 
contains information on themselves should address written inquiries to 
the Department of Housing Urban and Development, 451 7th Street SW, 
Washington, DC. For verification, individuals should provide full name, 
current address, and telephone number. In addition, the requester must 
provide either a notarized statement or an unsworn declaration made 
under 24 CFR 16.4, in the following format:
    If executed outside the United States: ``I declare (or certify, 
verify, or state) under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct. Executed on 
(date). (Signature).'' If executed within the United States, its 
territories, possessions, or commonwealths: ``I declare (or certify, 
verify, or state) under penalty of perjury that the foregoing is true 
and correct. Executed on (date). (Signature).'' More information 
regarding HUD's procedures for accessing records in accordance with the 
Privacy Act can be found at 24 CFR 16.4, ``Protection of Privacy and 
Access to Individual Records Under the Privacy Act of 1974.''

CONTESTING RECORD PROCEDURES:
    The HUD rule for accessing, contesting, and appealing agency 
determinations by the individual concerned are published in 24 CFR part 
16.8 or may be obtained from the system manager.

NOTIFICATION PROCEDURES:
    Individuals seeking to determine whether information about 
themselves is contained in this system should address written inquiries 
to the Department of Housing Urban Development Office of Multifamily 
Housing, 451 7th Street SW, Washington, DC 20410-0001. For verification 
purposes, individuals should provide full name, office or organization 
where currently assigned, if applicable, and current address and 
telephone number. In addition, the requester must provide either a 
notarized statement or an unsworn declaration made in accordance with 
24 CFR part 16 in the following format:
    If executed outside the United States: ``I declare (or certify, 
verify, or state) under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct. executed on 
(Date). (Signature).''

EXEMPTIONS PROMULGATED FOR THE SYSTEM:
    None.

[[Page 14637]]

HISTORY:
    FR-7009-N-01, 2/20/2018, 83 FR 7208.

LaDonne White,
Chief Privacy Officer, Office of Administration.
[FR Doc. 2023-04830 Filed 3-8-23; 8:45 am]
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