Exhibit A5 24 CFR 5.236

Exhibit A5

Office of the Secretary, HUD

§ 5.236
guards to be used in protecting the information obtained through the match,
a description of the use of records, the
restrictions on duplication and redisclosure, a certification, and the
amount that will be charged for processing a request.

(i) As a third party source to verify
tenant employment and income information during mandatory reexaminations or recertifications of family composition and income, in accordance
with § 5.236, and administrative guidance issued by HUD; and
(ii) To reduce administrative and
subsidy payment errors in accordance
with HUD administrative guidance.
(b) Penalties for noncompliance. Failure to use the EIV system in its entirety may result in the imposition of
sanctions and/or the assessment of disallowed costs associated with any resulting incorrect subsidy or tenant
rent calculations, or both.

(Approved by the Office of Management and
Budget under control number 2508–0008)

§ 5.236 Procedures for termination, denial, suspension, or reduction of assistance based on information obtained from a SWICA or Federal
agency.
(a) Termination, denial, suspension, or
reduction of assistance. The provisions
of 42 U.S.C. 3544(c)(2)(B) and (C) shall
govern the termination, denial, suspension, or reduction of benefits for an assistance applicant or participant based
on income information obtained from a
SWICA or a Federal agency. Procedures necessary to comply with these
provisions are provided in paragraph
(b) of this section.
(b)
Procedures
for
independent
verification. (1) Any determination or
redetermination of family income
verified in accordance with this paragraph must be carried out in accordance with the requirements and procedures applicable to the individual covered program. Independent verification
of information obtained from a SWICA
or a Federal agency may be:
(i) By HUD;
(ii) In the case of the public housing
program, by a PHA; or
(iii) In the case of any Section 8 program, by a PHA acting as contract administrator under an ACC.
(2) Upon receiving income information from a SWICA or a Federal agency, HUD or, when applicable, the PHA
shall compare the information with the
information about a family’s income
that was:
(i) Provided by the assistance applicant or participant to the PHA; or
(ii) Obtained by the owner (or mortgagee, as applicable) from the assistance applicant or participant or from
his or her employer.
(3) When the income information reveals an employer or other income
source that was not disclosed by the
assistance applicant or participant, or
when the income information differs

[74 FR 68934, Dec. 29, 2009]

§ 5.234 Requests for information from
SWICAs and Federal agencies; restrictions on use.
(a) Information available from SWICAs
and Federal agencies—to whom and what.
Income information will generally be
obtained through computer matching
agreements between HUD and a SWICA
or Federal agency, or between a PHA
and a SWICA, as described in paragraph (c) of this section. Certification
that the applicable assistance applicants and participants have signed appropriate consent forms and have received the necessary Privacy Act notice is required, as follows:
(1) When HUD requests the computer
match, the processing entity shall certify to HUD; and
(2) When the PHA requests the computer match, the PHA shall certify to
the SWICA.
(b) Restrictions on use of information.
The
restrictions
of
42
U.S.C.
3544(c)(2)(A) apply to the use by HUD or
a PHA of income information obtained
from a SWICA. The restrictions of 42
U.S.C. 3544(c)(2)(A) and of 26 U.S.C.
6103(l)(7) apply to the use by HUD or a
PHA of income information obtained
from the IRS or SSA.
(c) Computer matching agreements.
Computer matching agreements shall
specify the purpose and the legal authority for the match, and shall include a description of the records to be
matched, a statement regarding disposition of information generated
through the match, a description of the
administrative and technical safe-

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§ 5.238

24 CFR Subtitle A (4–1–12 Edition)

substantially from the information received from the assistance applicant or
participant or from his or her employer:
(i) HUD or, as applicable or directed
by HUD, the PHA shall request the undisclosed employer or other income
source to furnish any information necessary to establish an assistance applicant’s or participant’s eligibility for or
level of assistance in a covered program. This information shall be furnished in writing, as directed to:
(A) HUD, with respect to programs
under parts 221, 235, 236, or 290 of this
title;
(B) The responsible entity (as defined
in § 5.100) in the case of the public housing program or any Section 8 program.
(C) The owner or mortgagee, as applicable, with respect to the rent supplement, Section 221(d)(3) BMIR, Section
235 homeownership assistance, or Section 236 programs.
(ii) HUD or the PHA may verify the
income information directly with an
assistance applicant or participant.
Such verification procedures shall not
include any disclosure of income information prohibited under paragraph
(b)(6) of this section.
(4) HUD and the PHA shall not be required to pursue these verification procedures when the sums of money at
issue are too small to raise an inference of fraud or justify the expense of
independent verification and the procedures related to termination, denial,
suspension, or reduction of assistance.
(5) Based on the income information
received from a SWICA or Federal
agency, HUD or the PHA, as appropriate, may inform an owner (or mortgagee) that an assistance applicant’s or
participant’s eligibility for or level of
assistance is uncertain and needs to be
verified. The owner (or mortgagee)
shall then confirm the assistance applicant’s or participant’s income information by checking the accuracy of the
information with the employer or
other income source, or directly with
the family.
(6) Nondisclosure of Income information. Neither HUD nor the PHA may
disclose income information obtained
from a SWICA directly to an owner
(unless a PHA is the owner). Disclosure
of income information obtained from

the SSA or IRS is restricted under 26
U.S.C. § 6103(l)(7) and 42 U.S.C. 3544.
(c) Opportunity to contest. HUD, the
PHA, or the owner (or mortgagee, as
applicable) shall promptly notify any
assistance applicant or participant in
writing of any adverse findings made
on the basis of the information verified
in accordance with paragraph (b) of
this section. The assistance applicant
or participant may contest the findings
in the same manner as applies to other
information and findings relating to
eligibility factors under the applicable
program. Termination, denial, suspension, or reduction of assistance shall be
carried out in accordance with requirements and procedures applicable to the
individual covered program, and shall
not occur until the expiration of any
notice period provided by the statute
or regulations governing the program.
[61 FR 11113, Mar. 18, 1996, as amended at 65
FR 16715, Mar. 29, 2000; 74 FR 68934, Dec. 29,
2009]

§ 5.238

Criminal and civil penalties.

Persons who violate the provisions of
42 U.S.C. 3544 or 26 U.S.C. 6103(l)(7) with
respect to the use and disclosure of income information may be subject to
civil or criminal penalties under 42
U.S.C. 3544(c)(3), 26 U.S.C. 7213(a), or 18
U.S.C. 1905.
§ 5.240 Family disclosure of income information to the responsible entity
and verification.
(a) This section applies to families
that reside in dwelling units with assistance under the public housing program, the Section 8 tenant-based assistance programs, or for which
project-based assistance is provided
under the Section 8, Section 202, or
Section 811 program.
(b) The family must promptly furnish
to the responsible entity any letter or
other notice by HUD to a member of
the family that provides information
concerning the amount or verification
of family income.
(c) The responsible entity must
verify the accuracy of the income information received from the family,
and change the amount of the total
tenant payment, tenant rent or Section 8 housing assistance payment, or

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