[Federal Register Volume 89, Number 20 (Tuesday, January 30, 2024)]
[Notices]
[Pages 5923-5925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01768]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-7092-N-13]


Privacy Act of 1974; System of Records

AGENCY: Office of the Chief Financial Officer (OCFO), HUD.

ACTION: Notice of a modified system of records.

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SUMMARY: Line of Credit Controls System (LOCCS), an Office of the Chief 
Financial Officer (OCFO) system, is a disbursement and cash management 
system that services the funding needs of HUD's grant, loan, and 
subsidy clients. Under the Privacy Act of 1974, the Department of 
Housing and Urban Development, the Office of the Chief Financial 
Officer proposes to update the system of records titled, Line of Credit 
Controls System. This system of records allows the Department of 
Housing and Urban Development OCFO's LOCCS to collect and maintain 
records on grantees. Because of a review of this system, information 
has been updated within the System Location section of the SORN and the 
authorities to collect information for LOCCS has been updated.

DATES: Comments will be accepted on or before February 29, 2024. The 
SORN becomes effective immediately, while the routine uses become 
effective after the comment period immediately upon publication except 
for the routine uses, which 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 by one 
of these 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: <a href="/cdn-cgi/l/email-protection#512626267f21233827303228113924357f363e27"><span class="__cf_email__" data-cfemail="f5828282db85879c8394968cb59d8091db929a83">[email protected]</span></a>. Mail: Attention: Privacy Office; 
Ladonne L. White; The Executive Secretariat; 451 Seventh Street SW, 
Room 10139; Washington, DC 20410-1001.
    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; 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 following are to be updated:
    <bullet> The system location is being changed. LOCCS records are no 
longer in South Charleston, WV. It is at HUD Headquarters; Microsoft 
Azure Cloud US East Data Center. Microsoft is responsible for securing 
their data center per FedRAMP requirements.
    <bullet> Routine uses previously included by reference are not 
explicitly listed in the SORN. This change adds no new routine uses, 
but merely reorganizes them. The routine uses included by reference to 
HUD's Appendix I are now explicitly listed.
    <bullet> Remove instances of Program Accounting System (PAS) 
because it has been decommissioned. A new module has been added to 
LOCCS. LOCCS incorporated the entire Program Accounting System (PAS) 
functionality in this new Award Funding module. PAS users now access 
LOCCS to perform their daily tasks in the LOCCS Award Funding Module. 
However, no new Personally Identifiable Information (PII) is being 
collected, stored, maintained, or disclosed because of the PAS module 
being incorporated. Social Security Numbers have been removed from the 
system.
    <bullet> Authority for Maintenance of the System: Replace ``Sec. 
113 of the Budget and Accounting Act of 1951 (31 U.S.C.66a)'' with ``31 
U.S.C. 3511''
    <bullet> Updated Categories of Individuals Covered by System
    <bullet> Updated Policies and Practices for Retention and Disposal 
of Records
    <bullet> Slight changes to the Record Access Procedures, Contesting 
Records Procedures, and Notification Procedures sections have been 
made. Minor non-substantive changes have been made to these sections to 
more accurately describe HUD's practices for accessing, contesting, and 
notifying.

SYSTEM NAME AND NUMBER:
    Line of Credit Control System (LOCCS, A67).

SECURITY CLASSIFICATION:
    Sensitive but Unclassified.

SYSTEM LOCATION:
    HUD Headquarters, 451 7th Street SW, Washington, DC 20410 and 
Microsoft Azure Cloud US East Data Center.

SYSTEM MANAGER(S):
    Sairah Ijaz, Assistant Chief Financial Officer for Systems, Office 
of the Chief

[[Page 5924]]

Financial Officer, Department of Housing and Urban Development, 451 
Seventh Street SW, Room 3100, Washington, DC 20410

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    <bullet> 31 U.S.C. 3511
    <bullet> The Chief Financial Officers Act of 1990 (31 U.S.C. 901, 
et seq.)
    <bullet> Executive Order 9397, as amended by Executive Order 13478
    <bullet> Housing and Community Development Act of 1987, 42 U.S.C. 
3543

PURPOSE(S) OF THE SYSTEM:
    The system is to process and make grant, loan, and subsidy 
disbursements. LOCCS ensures that payments are made promptly thus 
achieving efficient cash management practices. It creates accounting 
transactions with the appropriate accounting classification elements to 
correctly record disbursements and collections to the grant/project 
level subsidiary.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Section 8 Contract Administrators (S8CA) and grant recipients 
(excludes Section 8 Voucher Program).

CATEGORIES OF RECORDS IN THE SYSTEM:
    Vendor name, Vendor Number (e.g. EIN, SSN, or TIN), address, DUNS, 
Banking Account/Routing numbers, and financial data.

RECORD SOURCE CATEGORIES:
    Section 8 Contract Administrators and grant recipients provide data 
to Ft. Worth Accounting Center to enter LOCCS.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES
    (1) To the National Archives and Records Administration (NARA) and 
the General Services Administration (GSA) for records having sufficient 
historical or other value to warrant its continued preservation by the 
United States Government, or for inspection under authority of title 
44, chapter 29, of the United States Code.
    (2) 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.
    (3) To appropriate Federal, State, and local governments, or 
persons, under showing compelling circumstances affecting the health or 
safety or vital interest of an individual or data subject, including 
assisting such agencies or organizations in preventing the exposure to 
or transmission of a communicable or quarantinable disease, or to 
combat other significant public health threats, if upon such disclosure 
appropriate notice was transmitted to the last known address of such 
individual to identify the health threat or risk.
    (4) 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: (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; (3) detection 
of fraud, waste, and abuse by individuals in their operations and 
programs, but only if the information shared is necessary and relevant 
to verify pre-award and prepayment requirements before the release of 
Federal funds, 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.
    (5) (a) 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, or cooperative agreement, when necessary to 
accomplish an agency function, related to a system of records, for 
statistical analysis and research supporting 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.
    (b) To a recipient who has provided the agency with advance, 
adequate written assurance that the record provided from the system of 
records will be used solely for statistical research or reporting 
purposes. Records under this condition will be disclosed or transferred 
in a form that does not identify an individual.
    (6) To contractors, grantees, experts, consultants and their 
agents, or others performing or working under a contract, service, 
grant, or cooperative 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. Individuals provided 
information under these routine use conditions are subject to Privacy 
Act requirements and disclosure limitations imposed on the Department.
    (7) To contractors, experts and consultants with whom HUD has a 
contract, service agreement, or other assignment of the Department, 
when necessary to utilize data to test new technology and systems 
designed to enhance program operations and performance.
    (8) (a) To appropriate agencies, entities, and persons when (1) HUD 
suspects or has confirmed there has breached the system of records; (2) 
HUD has determined that because of the suspected or confirmed breach 
there is a risk of harm to individuals, HUD, the Federal Government, or 
national security; and (3) the disclosure made to such agencies, 
entities, and persons is reasonably necessary to assist with HUD's 
efforts to respond to the suspected or confirmed breach to prevent, 
minimize, or remedy such harm.
    (9) To another Federal agency or Federal entity, when HUD 
determines 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.
    (10) To appropriate Federal, State, local, tribal, or 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 help to enforce civil or criminal 
laws when such records, either alone or in conjunction with other 
information, indicate a violation or potential violation of law.
    (11) To a court, magistrate, administrative tribunal, or arbitrator 
while presenting evidence, including disclosures to opposing counsel or 
witnesses in civil discovery, litigation, mediation, or settlement 
negotiations; or in connection with criminal law proceedings; or in 
response to a

[[Page 5925]]

subpoena or to a prosecution request when such records to be released 
are specifically approved by a court provided order. Disclosures made 
pursuant to this routine use are limited to when HUD determines that 
use of such records is relevant and necessary to the litigation, 
provided, however, that in each case, HUD determines that the 
disclosure of the records is a use of the information contained in the 
records that is compatible with the purpose for which the records were 
collected.
    (12) To the Department of Justice (DOJ) when seeking legal advice 
for a HUD initiative or in response to DOJ's request for the 
information, after either HUD or DOJ determine that such information 
relates to DOJ's representatives of the United States or any other 
components in legal proceedings before a court or adjudicative body, 
provided that, in each case, the agency also determines before 
disclosure that disclosure of the records to DOJ is a use of the 
information in the records that is compatible with the purpose for 
which HUD collected the records. HUD on its own may disclose records in 
this system of records in legal proceedings before a court or 
administrative body after determining that disclosing the records to 
the court or administrative body is a use of the information in the 
records that is compatible with the purpose for which HUD collected the 
records.
    (13) To the U.S. Treasury for transactions such as disbursements of 
funds and related adjustments;
    (14) To the IRS for reporting payments for goods and services and 
for reporting of discharge indebtedness;
    (15) Disclosures under 5 U.S.C. 552a(b)(12). Disclosures may be 
made from the system to consumer reporting agencies as defined in the 
Fair Credit Reporting Act (15 U.S.C. 1681a(f) or the Federal Claims 
Collection Act of 1966, 31 U.S.C. 3701(a)(3)). The disclosure is 
limited to information to establish the identity of the individual, 
including name, social security number, and address; the amount, 
status, history of the claim, and the agency or program under which the 
claim arose solely to allow the consumer reporting agency to prepare a 
credit report.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    Electronic files are stored on servers. Paper printouts or original 
input documents are stored in locked file cabinets at HUD or as imaged 
documents on magnetic media.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Records are retrieved by business partner name, tax ID number, 
schedule number, voucher number, and contract number.

POLICIES AND PRACTICIES FOR RENTENTION AND DISPOSAL OF RECORDS:
    General Records Schedule 1:1; Financial Management and Reporting 
Records. This schedule covers records created by Federal agencies in 
carrying out the work of financial management. Temporary. Destroy 6 
years after final payment or cancellation, but longer retention is 
authorized if required for business use.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    All HUD employees have undergone background investigations. HUD 
buildings are guarded and monitored by security personnel, cameras, ID 
checks, and other physical security measures. Access is restricted to 
authorized personnel or contractors whose responsibilities require 
access. System users must take the mandatory security awareness 
training annually as mandated by the Federal Information Security 
Modernization Act (FISMA) (44 U.S.C. 3541, et seq.). Users must also 
sign a Rules of Behavior form certifying that they agree to comply with 
the requirements before they are granted access to the system. LOCCS 
resides on the Microsoft Azure Cloud, a FedRAMP certified 
Infrastructure-as-a-Service (IaaS). The system is limited to those with 
a business need to know. LOCCS Authorizing Officials authorize LOCCS 
access for users, and OCFO ensures the user is eligible for access 
(e.g. suitability, System Security Administrator approval), which allow 
for segregation of duties. Also, system user recertifications is 
conducted semi-annually for external users and quarterly for internal 
users.

RECORD ACCESS PROCEDURES:
    Individuals requesting records of themselves should address written 
inquiries to the Department of Housing Urban and Development 451 7th 
Street SW, Washington, DC 20410-0001. For verification, individuals 
should provide their 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.

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

NOTIFICATION PROCEDURES:
    Individuals requesting notification of records of themselves should 
address written inquiries to the Department of Housing Urban 
Development, 451 7th street SW, Washington, DC 20410-0001. For 
verification purposes, individuals should provide their full name, 
office or organization where assigned, if applicable, and 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.

EXEMPTIONS PROMULGATED FOR THE SYSTEM: NONE.
HISTORY: 87 FR 50640.

LaDonne L. White,
Chief, Privacy Officer.
[FR Doc. 2024-01768 Filed 1-29-24; 8:45 am]
BILLING CODE 4210-67-P


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