[Federal Register Volume 60, Number 41 (Thursday, March 2, 1995)]
[Rules and Regulations]
[Pages 11626-11629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5047]



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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of the Assistant Secretary for Public and Indian Housing

24 CFR Parts 813, 905, 908, and 913

[Docket No. R-95-1747; FR-3730-F-03]
RIN 2577-AB47


Electronic Transmission of Required Family Data for Public 
Housing, Indian Housing, and the Section 8 Rental Certificate, Rental 
Voucher, and Moderate Rehabilitation Programs

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Final rule.

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SUMMARY: This rule requires all housing agencies (HAs) to submit 
certain data electronically to HUD in a HUD prescribed format. For HAs 
that are not already automated or who determine that automation is not 
cost-effective, transmission of the data through the use of a service 
bureau is permitted. Electronic transmission is necessary because the 
manual submission of HUD forms has become a burden to HAs and HUD.
    This rule applies to projects administered under the public 
housing, Indian housing, and Section 8 Rental Certificate, Rental 
Voucher, and Moderate Rehabilitation programs. A similar rule was 
issued with respect to multifamily subsidized projects administered 
under programs subject to the oversight of the Assistant Secretary for 
Housing-Federal Housing Commissioner (58 FR 61017), which was codified 
at 24 CFR part 208.

EFFECTIVE DATE: April 3, 1995.

FOR FURTHER INFORMATION CONTACT: For Technical Information--Katherine 
M. Dillon, Director, Information Services Division, Office of Public 
and Indian Housing, Room 4248, telephone (202) 708-5285. For Public 
Housing program information--Edward C. Whipple, Director, Occupancy 
Division, Office of Public and Indian Housing, Room 4206, telephone 
(202) 708-0744. For Native American program information--Ed Fagan, 
Office of Native American Programs, Room B-133, telephone (202) 755-
0088. These people may be reached at the Department of Housing and 
Urban Development, 451 Seventh Street, S.W., Washington, D.C. 20410. 
Hearing or speech-impaired individuals may call HUD's TDD number (202) 
708-4594. (These telephone numbers are not toll-free.)

SUPPLEMENTARY INFORMATION:

I. Paperwork Burden

    The information collection requirements contained in this rule have 
been reviewed by the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520) and assigned 
approval number 2577-0083, which expires on August 31, 1997.

II. Background

    On Thursday, October 6, 1994, the Department published a proposed 
rule that would require all housing agencies (HAs) to submit certain 
data electronically to HUD in a HUD prescribed format.
    Housing agencies have been submitting data forms to HUD for each 
family assisted under the public housing, Indian housing, and Section 8 
Rental Certificate, Rental Voucher and Moderate Rehabilitation 
Programs. Approximately 85 percent of reporting agencies (3,655 HAs) 
have been submitting paper forms. This extensive processing of paper 
forms has become a burden to the HAs as well as to HUD.
    To reduce the cost to the Department of processing this information 
and to improve its accuracy, HUD issued the proposed rule to require 
that this information be submitted electronically. The change is 
expected to contribute significant savings to the Department, in a time 
when budget constraints demand such savings. The time spent by HAs in 
initiating electronic collection and transmission and making 
corrections to the electronic data submissions will be offset by future 
savings in the reexamination and reporting process, as well as 
increased accuracy and speed associated with the admission, 
reexamination and reporting processes, and the reduced number of HUD 
adjustments and paperwork required by these adjustments.
    The proposed rule requires HAs to submit data electronically via 
telephone modem, rather than through tape, diskette, or paper. However, 
the rule also provides that the Department may approve transmission of 
the data by tape or diskette where the Department determines that the 
cost of telephonic transmission would be excessive. For HAs that are 
not already automated or who determine that automation is not cost 
effective, the rule would permit transmission of the data through the 
use of a service bureau.
    In recognition of the difficulty some HAs may have in conversion to 
electronic submission of data, the proposed rule permits HUD Field 
Offices to grant extensions of time beyond the stated implementation 
date for commencement of electronic submission under certain 
circumstances.
    This final rule adopts the proposed rule, as published, in its 
entirety, with the addition of a reference to Indian housing programs 
in Sec. 908.108(a).

III. Response to Public Comments

    The Department received 16 comments on the proposed rule. The 
commentors consisted of HAs and two professional housing associations. 
Most respondents expressed general support for HUD's implementation of 
the rule. The following are major concerns expressed by the commentors:
    The most frequent category of concern was raised by small HAs (100 
units or less in management), requesting that they be excluded from the 
requirement [[Page 11627]] to submit family data electronically. They 
stated that their size and limited staff and financial resources made 
compliance burdensome, and they suggested two solutions. The first was 
to discontinue the submission of data completely; the second was to 
continue submission of paper reports as is currently the practice.
    While the Department is aware of the unique constraints faced by 
small HAs in reporting family data, they should be aware that they 
constitute a sizeable portion of the HA universe and have valuable 
resident family information that should be shared. HUD's position in 
this matter is that small HAs unable to automate their reporting 
systems should seek out, and contract with, organizations that provide 
data processing services (Service Bureaus). Service costs should be 
manageable, since small HAs are only required to report on a quarterly 
basis. A service bureau need not be physically located in the city 
where the housing agency is located, since paper records may be mailed 
to a service bureau, which may then transmit the records electronically 
to HUD.
    Several HAs suggested that if HUD provides the software for 
automating family data reporting, the requirement would be reasonable. 
Along these lines, other HAs and a housing organization indicated a 
willingness to send data electronically only if HUD provides equipment 
and software or pays for contracting with service bureaus.
    The Department is aware that there are vendors available that can 
assist HAs in automating the collection and reporting of family data. 
These vendors also can help HAs to achieve this automation in the 
context of HA automation of other functions. The Department strongly 
encourages HAs to investigate these options. HUD also is considering 
development of a software package that is directed primarily for the 
smaller HAs. This package would automate only the collection and 
reporting of family data, not the other HA functions. This software 
package would be provided free of charge. The Department will notify 
HAs by letter if this software package becomes available.
    The cost of automation hardware is an eligible operating expense 
and can be included in the operating budget. Automating this management 
function also is an allowable expense under the Comprehensive 
Improvement Assistance Program and the Comprehensive Grant Program.
    Another organization suggested that the Section 8 Program 
Administrative Fee be increased to cover the cost of automation. In the 
Section 8 Program, automation may be paid from ongoing Administrative 
Fees or the Operating Reserve. The Department, however, has no plans to 
increase Administrative Fees for the sole purpose of automation.
    Several HAs recommended that HUD provide training and technical 
assistance in the formatting and transmission of family data to the 
Department's central processing facility. Plans are underway to develop 
a video tape and expanded training materials specifically for this 
purpose.
    One organization recommended that this automation effort be more 
closely coordinated with the HUD automated database program TRACS--the 
data collection system used for programs administered by the Assistant 
Secretary for Housing--Federal Housing Commissioner. Unfortunately, the 
electronic data formats for the Forms HUD-50058 and HUD-50058-FSS, 
which are used for the programs that are covered by this rule, and for 
the Form HUD-50059, which are the subject of TRACS, are unique and will 
not accommodate a one-for-one correspondence. While similar automation 
hardware may be used to process a variety of management information 
reports, software specifically designed for the above forms is 
required.
    A number of HAs recommended that the time periods required for the 
implementation of the rule be extended in the following manner:
    Automated agencies (converting to telephonic electronic 
transmission) from 120 days after publication of the final rule to 12 
months.
    Non-automated agencies (planning to automate) from 365 days after 
publication of the final rule to 24 months.
    While HUD understands the obstacles and concerns facing agencies in 
this automation effort, the intent of the rule is to decrease the 
reporting burden for HAs while at the same time, reduce costs to the 
Department in a time when budget constraints demand such savings. HUD 
is of the opinion that the time frames originally set in the rule are 
realistic. Special situations may be directed to the HUD Field Office 
for consideration.
    One HA located in a remote area of Alaska requested approval of 
transmission via tape or diskette, since telephonic service was 
undependable. In these instances HAs may utilize a Service Bureau or, 
upon prior approval from HUD, transmit via tape or diskette.

IV. Other Matters

A. Environmental Impact

    In accordance with 40 CFR 1508.4 of the regulations of the Council 
on Environmental Quality and 24 CFR 50.20(o) of the HUD regulations, 
the policies and procedures contained in this rule relate only to HUD 
administrative procedures and, therefore, are categorically excluded 
from the requirements of the National Environmental Policy Act.

B. Federalism Impact

    The General Counsel, as the Designated Official under section 6(a) 
of Executive order 12612, Federalism, has determined that the policies 
contained in this rule will not have substantial direct effects on 
states or their political subdivisions, or the relationship between the 
Federal government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Specifically, 
this rule is directed to housing agencies that operate HUD-assisted 
housing, whose functions and authority remain unchanged. It merely 
changes the format of data submitted to HUD to make its transmission 
more accurate and efficient. It will not impinge upon the relationship 
between the Federal Government and State and local governments. As a 
result, the rule is not subject to review under the order.

C. Impact on the Family

    The General Counsel, as the Designated Official under Executive 
Order 12606, The Family, has determined that this rule does not have 
potential for significant impact on family formation, maintenance, and 
general well-being, and, thus, is not subject to review under the 
order. No significant change in existing HUD policies or programs will 
result from promulgation of this rule, as those policies and programs 
relate to family concerns.

D. Regulatory Flexibility Act

    The Secretary, in accordance with the Regulatory Flexibility Act (5 
U.S.C. 605(b)) has reviewed and approved this rule, and in so doing 
certifies that this rule will not have a significant economic impact on 
a substantial number of small entities. Because this rule changes the 
way in which the data is transmitted to HUD, and all costs associated 
with implementation of the electronic transmission will be considered 
allowable project operating costs, the rule is not expected to have a 
significant economic impact.
[[Page 11628]]

E. Regulatory Agenda

    This rule was not listed in the Department's Semiannual Agenda of 
Regulations published on November 14, 1994 (59 FR 57632) under 
Executive Order 12866 and the Regulatory Flexibility Act.

F. Catalog

    The Catalog of Federal Domestic Assistance numbers for the programs 
covered by this rule are 14.850, 14.855, 14.856, and 14.857.

List of Subjects

24 CFR Part 813

    Grant programs--housing and community development, Rent subsidies, 
Reporting and recordkeeping requirements, Utilities.

24 CFR Part 905

    Aged, Energy conservation, Grant programs--housing and community 
development, Grant programs--Indians, Indians, Homeownership, 
Individuals with disabilities, Lead poisoning, Loan programs--housing 
and community development, Loan programs--Indians, Low and moderate 
income housing, Public housing, Reporting and recordkeeping 
requirements.

24 CFR Part 908

    Computer technology--automatic data processing, data processing, 
electronic data processing, Subsidies--grant programs, Rent subsidies.

24 CFR Part 913

    Grant programs--housing and community development, Public housing, 
Reporting and recordkeeping requirements.

    Accordingly, title 24, chapters VIII and IX, of the Code of Federal 
Regulations are amended by amending parts 813, 905, and 913, and by 
adding a new part 908, consisting of Secs. 908.101 through 908.112, as 
follows:

PART 813--DEFINITION OF INCOME, INCOME LIMITS, RENT AND 
REEXAMINATION OF FAMILY INCOME FOR THE SECTION 8 HOUSING ASSISTANCE 
PAYMENTS PROGRAMS AND RELATED PROGRAMS

    1. The authority citation for part 813 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437n, and 3535(d).

    2. In Sec. 813.109, a new paragraph (c) is added, to read as 
follows:


Sec. 813.109  Initial determination, verification, and reexamination of 
family income and composition.

* * * * *
    (c) See 24 CFR part 908 for requirements for transmission of data 
to HUD.
* * * * *

PART 905--INDIAN HOUSING PROGRAMS

    3. The authority citation for part 905 continues to read as 
follows:

    Authority: 25 U.S.C. 450e(b), 42 U.S.C. 1437a, 1437aa, 1437bb, 
1437cc, 1437ee, and 3535(d).

    4. In Sec. 905.315, paragraphs (a) (2) and (3) are redesignated as 
paragraphs (b) and (c), and a new paragraph (d) is added, to read as 
follows:


Sec. 905.315  Initial determination, verification, and reexamination of 
family income and composition.

* * * * *
    (d) See 24 CFR part 908 for requirements for transmission of data 
to HUD.
    5. A new part 908, consisting of Secs. 908.101 through 908.112, is 
added to read as follows:

PART 908--ELECTRONIC TRANSMISSION OF REQUIRED FAMILY DATA FOR 
PUBLIC HOUSING, INDIAN HOUSING, AND THE SECTION 8 RENTAL 
CERTIFICATE, RENTAL VOUCHER, AND MODERATE REHABILITATION PROGRAMS

Sec.
908.101  Purpose.
908.104  Requirements.
908.108  Cost.
908.112  Extension of time.

    Authority: 42 U.S.C. 1437f, 3535(d), 3543, 3544, and 3608a.


Sec. 908.101  Purpose.

    The purpose of this part is to require Housing Agencies (HAs) that 
operate public housing, Indian housing, or Section 8 Rental 
Certificate, Rental Voucher and Moderate Rehabilitation programs to 
electronically submit certain data to HUD for those programs. This 
electronically submitted data is required for HUD Forms HUD-50058, 
Family Report, and HUD-50058-FSS, Family Self-Sufficiency Addendum.


Sec. 908.104  Requirements.

    (a) Automated HAs. Housing agencies that currently use automated 
software packages to transmit Forms HUD-50058 and HUD-50058-FSS 
information by tape or diskette to the Department's data processing 
contractor must convert to telephonic electronic transmission of that 
data in a HUD specified format by June 30, 1995.
    (b) Nonautomated HAs. Housing agencies that currently prepare and 
transmit the HUD-50058 and HUD-50058-FSS information to HUD paper must:
    (1) Complete a vendor search and obtain either:
    (i) The necessary hardware and software required to develop and 
maintain an in-house automated data processing system (ADP) used to 
generate electronic submission of the data for these forms via 
telephonic network; or
    (ii) A service contract for the operation of an automated system to 
generate electronic submission of the data for these forms via 
telephonic network;
    (2) Complete their data loading; and
    (3) Begin electronic transmission by March 2, 1996.
    (c) Electronic transmission of data. Electronic transmission of 
data consists of submission of all required data fields (correctly 
formatted) from the forms HUD-050058 and HUD-50058-FSS telephonically, 
in accordance with HUD instructions. Regardless of whether an HA 
obtains the ADP system itself or contracts with a service bureau to 
provide the system, the software must be periodically updated to 
incorporate changes or revisions in legislation, regulations, 
handbooks, notices, or HUD electronic transmission data format 
requirements.
    (d) Service contract. HAs that determine that the purchase of 
hardware and/or software is not cost effective may contract out the 
electronic data transmission function to organizations that provide 
such services, including, but not limited to the following 
organizations: local management associations and management agents with 
centralized facilities. HAs that contract out the electronic 
transmission function must retain the ability to monitor the day-to-day 
operations of the project at the HA site and be able to demonstrate the 
ability to the relevant HUD Field Office.
    (e) Notwithstanding the provisions of paragraphs (a) and (b) of 
this section, the Department may approve transmission of the data by 
tape or diskette if it determines that the cost of telephonic 
transmission would be excessive.

    [Approved by the Office of Management and Budget under control 
number 2577-0083]


Sec. 908.108  Cost.

    (a) General. The costs of the electronic transmission of the 
correctly formatted data, including either the purchase and maintenance 
of computer hardware or software, or both, the cost of contracting for 
those services, or the cost of [[Page 11629]] centralizing the 
electronic transmission function, shall be considered Section 8 
Administrative expenses, or eligible public and Indian housing 
operating expenses that can be included in the public and Indian 
housing operating budget. At the HA's option, the cost of the computer 
software may include service contracts to provide maintenance or 
training, or both.
    (b) Sources of funding. For public and Indian housing, costs may be 
covered from operating subsidy for which the HA is already eligible, or 
the initial cost may be covered by funds received by the HA under HUD's 
Comprehensive Improvement Assistance Program (CIAP) or Comprehensive 
Grant Program (CGP). For Section 8 programs, the costs may be covered 
from ongoing administrative fees or the Section 8 operating reserve.


Sec. 908.112  Extension of time.

    The HUD Field Office may grant an HA an extension of time, of a 
reasonable period, for implementation of the requirements of 
Sec. 908.104, if it determines that such electronic submission is 
infeasible because of one of the following:
    (a) Lack of staff resources;
    (b) Insufficient financial resources to purchase the required 
hardware, software or contractual services; or
    (c) Lack of adequate infrastructure, including, but not limited to, 
the inability to obtain telephone service to transmit the required 
data.

PART 913--DEFINITION OF INCOME, INCOME LIMITS, RENT AND 
REEXAMINATION OF FAMILY INCOME FOR THE PUBLIC HOUSING PROGRAM

    6. The authority citation for part 913 continues to read as 
follows:

    Authority: 42 U.S.C. 1437a, 1437d, 1437n, and 3535(d).

    7. In Sec. 913.109, a new paragraph (c) is added, to read as 
follows:


Sec. 913.109  Initial determination, verification, and reexamination of 
family income and composition.

* * * * *
    (c) See 24 CFR part 908 for requirements for transmission of data 
to HUD.
* * * * *
    Dated: February 21, 1995.
Joseph Shuldiner,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 95-5047 Filed 3-1-95; 8:45 am]
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