[Federal Register Volume 66, Number 99 (Tuesday, May 22, 2001)]
[Notices]
[Pages 28192-28194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12839]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4456-N-15]


Privacy Act of 1974; Establishment of a New System of Records

AGENCY: Office of the Chief Information Officer, HUD.

ACTION: Notification of the establishment of a new system of records.

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SUMMARY: Pursuant to the provisions of the Privacy Act of 1974 (5 
U.S.C. 552a), as amended, the Department of Housing and Urban 
Development (HUD) is giving notice that it proposes to establish a new 
system of records entitled ``Inspector Quality Assurance/Quality 
Control Administrative Files,'' which will be used in performing 
quality assurance and quality control reviews of physical inspections 
of certain properties performed by inspectors certified in the use of 
the HUD inspection protocol, and in supporting other administrative 
requirements related to monitoring inspectors' performance of physical 
inspections.

DATES: Effective Date: This proposal shall become effective without 
further notice on June 21, 2001, unless comments are received on or 
before that date which would result in a contrary determination.
    Comments Due Date: June 21, 2001.

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 7th Street, 
SW., Washington, DC 20410-0500. Communications should refer to the 
above docket number and title. Comments submitted by facsimile (FAX) 
will not be accepted. 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 Information: Jeanette 
Smith, Department Privacy Act Officer, Telephone Number (202) 708-2374. 
For REAC, Quality Assurance/Quality Control Administrative Files, 
Richard Santangelo, Telephone (202) 708-4932, x3002. (These are not 
toll-free numbers.) 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: Pursuant to the Privacy Act of 1974 (5 
U.S.C. 552a), as amended, notice is given that HUD proposes to 
establish a new system of records identified as HUD/REAC-3, the Quality 
Assurance/ Quality Control Administrative Files of the Real Estate 
Assessment Center (REAC). REAC is currently responsible for evaluating 
the physical and financial condition of over 3,000 Public Housing 
Agencies (PHAs) and approximately 30,000 Federal Housing Administration 
(FHA) multifamily insured, direct loan, HUD-held, and Section 8 
project-based subsidized properties; in the future, REAC may also be 
responsible for evaluating the physical condition of additional HUD 
programs identified by statute or regulation, or by contract, the 
physical condition of other federally-assisted properties (all of these 
properties are hereinafter referred to collectively as ``properties''). 
The physical condition of certain HUD assisted or insured properties is 
evaluated using the Uniform Physical Conditions Standards (UPCS), which 
HUD adopted on September 1, 1998 (see 24 CFR 5.703). Under the UPCS, 
certain HUD assisted or insured properties are physically inspected 
annually, unless otherwise notified by HUD, to ensure they are decent, 
safe, sanitary and in good repair.
    To ensure that physical inspections are conducted according to the 
UPCS or other appropriate protocol, REAC has developed a quality 
assurance and quality control (QA/QC) process that will monitor 
inspectors' performance.
    There are five levels to the QA process. At the first level, the 
HUD contractor or other inspection entity is responsible for 
implementing an internal quality control procedure to ensure that 
inspections are conducted in accordance with the applicable 
regulations. At the second level, REAC staff evaluate the inspector's 
performance and ability to properly apply the UPCS or other appropriate 
protocol. At the third level, REAC staff evaluate the accuracy of the 
inspections and the scores. And at the fourth level, REAC research and 
development staff evaluate the performance of the overall inspection 
program with regard to the precision and replicability of the 
inspection protocol. At the fifth level, end users of the information 
created by REAC will assess the reliability and replicability of the 
inspection process.
    This QA/QC process provides HUD with the assurance that the 
information in the physical inspection report is accurate and the 
inspection was conducted according to the UPCS protocol, or other 
appropriate protocol.
    Title 5 U.S.C. 552a(e)(4) and (11) provide that the public be 
afforded a 30-day period in which to comment on the new record systems. 
The new system report was submitted to the Office of Management and 
Budget (OMB), the House of Representatives Committee on Government 
Reform and Oversight, and the Senate Committee on Governmental Affairs 
pursuant to paragraph 4c of Appendix 1 to OMB Circular No. A-130, 
``Federal Responsibilities for Maintaining Records About Individuals,'' 
July 25, 1994; 59 FR 37914.
    Accordingly, this notice establishes a new system of records and 
accompanying routine uses to be created during the physical inspection 
quality assurance review process at HUD's Real Estate Assessment 
Center.

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

    Dated: May 17, 2001.
Gloria R. Parker,
Chief Information Officer.
HUD/REAC-3

SYSTEM NAME
    Quality Assurance/Quality Control Administrative Files of the Real 
Estate Assessment Center.

SYSTEM LOCATION
    Headquarters.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM
    All individuals who are qualified, and who have successfully 
completed HUD approved training in the use of the data collection 
device (DCD), UPCS software, and other requirements of the HUD 
inspection protocol; have successfully passed the test to be certified 
in the use of the HUD inspection protocol; and have received an 
inspector identification number and badge from the REAC. The system 
also covers individuals who have submitted an inspector application, 
and contains information by individual name of those REAC inspectors 
and contractors conducting the QA/QC.

CATEGORIES OF RECORDS IN THE SYSTEM
    Records may contain correspondence relating to inspector 
performance. Such correspondence will include periodic reports provided 
to contract inspection entities or persons who have contracted with HUD 
or servicing mortgagees to perform inspections, and servicing 
mortgagees whose employees are certified to conduct inspections. 
Correspondence may also include complaints about inspector performance 
or behavior received from owners, agents, servicing lenders or 
residents; reports of inspector performance that may serve as the basis 
for appeals or technical reviews; Congressional inquiries; 
correspondence from Federal, state or local jurisdictions; or other 
documentation. Also, records consist of documentation regarding 
inspector qualifications. Such documentation will include inspector 
applications, resumes, substantiations of training courses attended, 
test results, etc.
    Records also consist of the physical inspection reports prepared by 
the inspectors and the results of REAC's

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acceptance testing procedures. Records may include documentation of 
observations by REAC QA/QC Inspectors in conjunction with and/or during 
the Collaborative Quality Assurance (CQA), Independent Quality 
Assurance (IQA) reviews, or other quality assurance reviews. Other 
records may include information regarding the planning, conduct and 
results of the QA/QC process, trend analyses, internal legal assistance 
requests, information requests, responses to such requests, reports of 
findings, etc.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Information on statutory authority of housing standards can be 
found in the United States Housing Act of 1937 (42 U.S.C. 1437, et 
seq.), and in the Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701, et seq.). Subpart G of 24 CFR Part 5 contains information 
on the uniform physical condition standards and physical inspection 
requirements for certain HUD housing. A final rule published December 
8, 2000 (65 FR 77230), contains information on the uniform physical 
condition standards and physical inspection requirements for multi-
family housing. Information on the Public Housing Assessment System 
(PHAS) can be found at 24 CFR Part 902, as amended. OMB Circular A-123 
(Management Accountability and Control) contains information on agency 
requirements to develop and implement strategies to ensure 
accountability and effectiveness of Federal programs. OMB Circular A-
130, Appendix I (Federal Agency Responsibilities for Maintaining 
Records about Individuals) provides information on agency 
responsibilities for implementing the reporting and publication 
requirements of the Privacy Act. Additional information on physical 
inspection requirements of HUD assisted or insured properties can be 
found in the HUD 2020 Management Reform Plan.

PURPOSE(S):
    REAC performs the QA/QC process on inspectors and inspections of 
properties to assure that the physical inspections are conducted in 
accordance with the HUD protocol or other appropriate protocol and that 
the information is accurate and reliable. In the event that the records 
generated during the process of the review indicate a violation or 
potential violation of the law, relevant records may be disclosed to 
the appropriate Federal, state or local authority for investigation or 
enforcement of the applicable laws.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    In addition to those disclosures generally permitted under 
subsection (b) of the Privacy Act of 1974, 5 U.S.C. 552a(b), records 
may also be disclosed routinely to other users under the following 
circumstances:
    1. In the event that records indicate a violation or potential 
violation of law, whether criminal, civil or regulatory in nature, the 
relevant records may be disclosed to the appropriate Federal, state, or 
local agency charged with the responsibility for investigating or 
prosecuting such violation or enforcing or implementing such statute, 
rule or regulation.
    2. Records may be disclosed to a congressional office in response 
to an inquiry from that congressional office made at the request of the 
individual who is the subject of the records.
    3. Records may be disclosed to any committee, subcommittee, or 
joint committee of Congress if the disclosure pertains to a matter 
within the legislative or investigative jurisdiction of the committee, 
subcommittee, or joint committee.
    4. Records may be disclosed to HUD contractors or other entities 
who have entered into working agreements with the individual inspector 
for these inspection services, PHAs or management agents of HUD-
assisted housing properties, servicing mortgagees, or owners or agents 
of other properties, in order to assist such entities in taking action 
to recover money or property, where such recovery serves to promote the 
integrity of the programs or operations of HUD or other contracting 
Federal agency.
    5. Records may be disclosed during the course of an administrative 
proceeding where HUD or other contracting Federal agency is a party to 
the litigation and the disclosure is relevant, reasonable and necessary 
to adjudicate the matter.
    6. Records may be disclosed to the Department of Justice for 
litigation purposes associated with the representation of HUD or other 
contracting Federal agency before the courts.
    7. Records may be disclosed to any source, either private or 
governmental, to the extent necessary to elicit information relevant to 
an Office of Inspector General investigation.
    8. Records may be disclosed to the HUD contractor or other entity 
who has entered into a working agreement with an individual inspector 
for inspection services, in order to assist in evaluating the working 
relationship between the individual inspector and the HUD contractor or 
other entity.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Records are stored electronically in office automation equipment 
and manually in file jackets.

RETRIEVABILITY:
    Records may be retrieved by computer search and/or by reference to 
particular inspection number, inspector name, or by the inspector's 
HUD-issued identification number.

SAFEGUARDS:
    Records are maintained in a secure computer network, and in locked 
filecabinets or in metal file cabinets in rooms with controlled access.

RETENTION AND DISPOSAL:
    The records are retained and disposed of in accordance with the 
General Records Schedule contained in HUD Handbook 2228.2, appendix 14, 
item 25.

SYSTEM MANAGER(S) AND ADDRESS:
    Richard Santangelo, Real Estate Assessment Center, 1280 Maryland 
Avenue, SW., Suite 800, Washington, DC 20024.

NOTIFICATION PROCEDURE:
    The System Manager will accept inquiries from individuals seeking 
notification of whether the system contains records pertaining to them.

RECORD ACCESS PROCEDURES:
    The procedures for requesting access to records appear in 24 CFR 
parts 16 and 2003.

CONTESTING RECORD PROCEDURES:
    The procedures for requesting amendment or correction of records 
appear in 24 CFR part 16.

RECORD SOURCE CATEGORIES:
    Information may be collected from a wide variety of sources, 
including from HUD, program participants, subject individuals, 
complainants, witnesses and other non-government sources.

EXEMPTIONS FROM CERTAIN PROVISIONS OF THE ACT:
    None.
[FR Doc. 01-12839 Filed 5-21-01; 8:45 am]
BILLING CODE 4210-01-P