42 U.S.C. § 3544 — Preventing fraud and abuse in housing

Page 5937 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3544 opment and implementation by Federal depart- ments and agencies of the efforts required by subsection (b) and shall report to the Congress on such development and implementation and with respect to any provisions of law which un- necessarily prevent such departments and agen- cies from carrying out the provisions of this sec- tion as part of each report required under Public Law 93–556. Such report shall include an esti- mate of the reduction of the level of paperwork burden hours of the affected agencies as allo- cated by the Office of Management and Budget. (Pub. L. 95–557, title IX, § 905, Oct. 31, 1978, 92 Stat. 2126; Pub. L. 96–153, title III, § 328, Dec. 21, 1979, 93 Stat. 1121; Pub. L. 98–479, title II, § 204(n)(4), Oct. 17, 1984, 98 Stat. 2234; Pub. L. 102–54, § 13(q)(10), June 13, 1991, 105 Stat. 281.) Editorial Notes REFERENCES IN TEXT The Real Estate Settlement Procedures Act of 1974, referred to in subsec. (b)(1)(E), is Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of Title 12, Banks and Bank- ing. For complete classification of this Act to the Code, see Short Title note set out under section 2601 of Title 12 and Tables. Public Law 93–556, referred to in subsec. (c), is Pub. L. 93–556, Dec. 27, 1974, 88 Stat. 1789, which is set out as a note under section 3501 of Title 44, Public Printing and Documents. CODIFICATION Section was not enacted as part of the Department of Housing and Urban Development Act which comprises this chapter. AMENDMENTS 1991—Subsec. (b)(1), (2). Pub. L. 102–54 substituted ‘‘Secretary of Veterans Affairs’’ for ‘‘Administrator of Veterans’ Affairs’’ wherever appearing. 1984—Subsec. (b)(1)(E). Pub. L. 98–479 inserted ‘‘of 1974’’ after ‘‘Act’’. 1979—Subsec. (a). Pub. L. 96–153 reenacted subsec. (a) without change. Subsec. (b). Pub. L. 96–153 substituted, in provision preceding par. (1)(A), ‘‘Not later than October 1, 1980, the Secretary of Housing and Urban Development, the Secretary of Agriculture, and the Administrator of Veterans’ Affairs shall, consistent with provisions of law governing the conduct of housing programs,’’ for ‘‘Insofar as it is practicable and to the extent that such action would result in a reduction in paperwork and regulatory burden, the Department of Housing and Urban Development and the Veterans’ Administration shall’’, inserted reference to Secretary of Agriculture in par. (1)(F), added par. (2), redesignated former par. (2) as (3), and struck out former par. (3), which author- ized the President to require the Farmers Home Admin- istration and Administrator of the Farmers Home Ad- ministration to comply with the requirements of this section if such compliance would contribute to a reduc- tion in the paperwork and regulatory burden of housing and housing finance programs administered by that agency. Subsec. (c). Pub. L. 96–153 inserted provision requir- ing the reports to include an estimate of the reduction of the level of paperwork burden hours of the affected agencies as allocated by the Office of Management and Budget. § 3542. Public notice and comment regarding demonstration programs not expressly au- thorized in law (a) No demonstration program not expressly authorized in law may be commenced by the Secretary of Housing and Urban Development until (1) a description of such demonstration program is published in the Federal Register, which description may be included in a notice of funding availability; and (2) there expires a pe- riod of sixty calendar days following the date of such publication, during which period the Sec- retary shall fully consider any public comments submitted with respect to such demonstration program. (b) Nothing in this section may be considered to authorize the conducting of any demonstra- tion program by the Secretary of Housing and Urban Development. (Pub. L. 98–181, title I [title IV, § 470], Nov. 30, 1983, 97 Stat. 1237.) Editorial Notes CODIFICATION Section was enacted as part of the Supplemental Ap- propriations Act, 1984, and not as part of the Depart- ment of Housing and Urban Development Act which comprises this chapter. § 3543. Preventing fraud and abuse in Depart- ment of Housing and Urban Development programs (a) Disclosure of social security account number As a condition of initial or continuing eligi- bility for participation in any program of the Department of Housing and Urban Development involving loans, grants, interest or rental assist- ance of any kind, or mortgage or loan insurance, and to ensure that the level of benefits provided under such programs is proper, the Secretary of Housing and Urban Development may require that an applicant or participant (including members of the household of an applicant or participant) disclose his or her social security account number or employer identification number to the Secretary. (b) Definitions For purposes of this section, the terms ‘‘appli- cant’’ and ‘‘participant’’ shall have such mean- ings as the Secretary of Housing and Urban De- velopment by regulation shall prescribe. Such terms shall not include persons whose involve- ment is only in their official capacity, such as State or local government officials or officers of lending institutions. (Pub. L. 100–242, title I, § 165, Feb. 5, 1988, 101 Stat. 1864.) Editorial Notes CODIFICATION Section was enacted as part of the Housing and Com- munity Development Act of 1987, and not as part of the Department of Housing and Urban Development Act which comprises this chapter. § 3544. Preventing fraud and abuse in housing and urban development programs (a) Definitions As used in this section: (1) Secretary The term ‘‘Secretary’’ means the Secretary of Housing and Urban Development. Page 5938 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3544 1 See References in Text note below. (2) Applicant; participant The terms ‘‘applicant’’ and ‘‘participant’’ shall have such meanings as the Secretary by regulation shall prescribe, except that such terms shall include members of an applicant’s or participant’s household, and such terms shall not include persons whose involvement is only in their official capacity, such as State or local government officials and officers of lend- ing institutions. (3) Public housing agency The term ‘‘public housing agency’’ means any agency described in section 3(b)(6) of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)(6)]. (4) Program of the Department of Housing and Urban Development The term ‘‘program of the Department of Housing and Urban Development’’ includes In- dian housing programs assisted under title II 1 of the United States Housing Act of 1937. (b) Applicant and participant consent As a condition of initial or continuing eligi- bility for participation in any program of the Department of Housing and Urban Development involving initial and periodic review of an appli- cant’s or participant’s income, and to assure that the level of benefits provided under the pro- gram is correct, the Secretary may require that an applicant or participant— (1) sign a consent form approved by the Sec- retary authorizing the Secretary, the public housing agency, or the owner responsible for determining eligibility for or level of benefits to request current or previous employers to verify salary and wage information pertinent to the applicant’s or participant’s eligibility or level of benefits; (2) sign a consent form approved by the Sec- retary authorizing the Secretary or the public housing agency responsible for determining eligibility or level of benefits to request a State agency charged with the administration of the State unemployment law to release wage information with respect to such appli- cant or participant or information regarding whether such applicant or participant is re- ceiving, has received, or has made application for, unemployment compensation, and the amount of any such compensation being re- ceived (or to be received) by such applicant or participant; (3) sign a consent form approved by the Sec- retary authorizing the Secretary to request the Commissioner of Social Security and the Secretary of the Treasury to release informa- tion pursuant to section 6103(l)(7)(D)(ix) of title 26 with respect to such applicant or par- ticipant for the sole purpose of the Secretary verifying income information pertinent to the applicant’s or participant’s eligibility or level of benefits; and (4) only in the case of an applicant or partic- ipant that is a member of a family described in section 3(f)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(f)(2)), sign an agree- ment under which the applicant or participant agrees to provide to the appropriate public housing agency, or the owner responsible for determining the participant’s eligibility or level of benefits, the information required under section 3(f)(1) of such Act [42 U.S.C. 1437a(f)(1)] for the sole purpose of verifying in- come information pertinent to the applicant’s or participant’s eligibility or level of benefits, and comply with such agreement. Except as provided in this subsection, this con- sent form shall not be used to request taxpayer return information protected by section 6103 of title 26. (c) Access to records (1) Omitted (2) Applicant and participant protections (A) In order to protect applicants for, and re- cipients of, benefits under the programs of the Department of Housing and Urban Develop- ment from the improper use of information ob- tained pursuant to the requirements of section 503(i) of this title from the State agency charged with the administration of the State unemployment compensation law, pursuant to section 3(d)(1) of the United States Housing Act of 1937 [42 U.S.C. 1437a(d)(1)] from the ap- plicant or participant, or pursuant to section 6103(l)(7)(D)(ix) of title 26 from the Commis- sioner of Social Security or the Secretary of the Treasury, officers and employees of the Department of Housing and Urban Develop- ment and (in the case of information obtained pursuant to such section 503(i) or 3(d)(1) [42 U.S.C. 1437a(d)(1)]) representatives of public housing agencies may only use such informa- tion— (i) to verify an applicant’s or participant’s eligibility for or level of benefits; or (ii) in the case of an owner or public hous- ing agency responsible for determining eligi- bility for or level of benefits, to inform such owner or public housing agency that an ap- plicant’s or participant’s eligibility for or level of benefits is uncertain and to request such owner or public housing agency to verify such applicant’s or participant’s in- come information. (B) No Federal, State, or local agency, or public housing agency, or owner responsible for determining eligibility for or level of bene- fits receiving such information may termi- nate, deny, suspend, or reduce any benefits of an applicant or participant until such agency or owner has taken appropriate steps to inde- pendently verify information relating to— (i) the amount of the wages, other earnings or income, or unemployment compensation involved, (ii) whether such applicant or participant actually has (or had) access to such wages, other earnings or income, or benefits for his or her own use, and (iii) the period or periods when, or with re- spect to which, the applicant or participant actually received such wages, other earnings or income, or benefits. (C) Such applicant or participant shall be in- formed by the agency or owner of the findings Page 5939 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3544 2 So in original. The comma probably should be ‘‘and’’. made by the agency or owner on the basis of such verified information, and shall be given an opportunity to contest such findings, in the same manner as applies to other information and findings relating to eligibility factors under the program. (3) Penalty (A) Any person who knowingly and willfully requests or obtains any information con- cerning an applicant or participant pursuant to the authority contained in section 503(i) of this title, section 3(d)(1) of the United States Housing Act of 1937 [42 U.S.C. 1437a(d)(1)], or section 6103(l)(7)(D)(ix) of title 26 without con- sent or agreement, as applicable, pursuant to subsection (b) of this section or under false pretenses, or any person who knowingly and willfully discloses any such information in any manner to any individual not entitled under any law to receive it, shall be guilty of a misdemeanor and fined not more than $5,000. The term ‘‘person’’ as used in this paragraph shall include an officer or employee of the De- partment of Housing and Urban Development, an officer or employee of any public housing agency, and any owner responsible for deter- mining eligibility for or level of benefits (or employee thereof). (B) Any applicant or participant affected by (i) a negligent or knowing disclosure of infor- mation referred to in this section, section 503(i) of this title, section 3(d)(1) of the United States Housing Act of 1937 [42 U.S.C. 1437a(d)(1)], or section 6103(l)(7)(D)(ix) of title 26 about such person by an officer or employee of any public housing agency or owner (or em- ployee thereof), which disclosure is not au- thorized by this section, such section 503(i), such section 3(d)(1) [42 U.S.C. 1437a(d)(1)], such section 6103(l)(7)(D)(ix), or any regulation im- plementing this section, such section 503(i), such section 3(d)(1) [42 U.S.C. 1437a(d)(1)], or such section 6103(l)(7)(D)(ix), or for which con- sent, pursuant to subsection (b) of this sec- tion, has not been granted, or (ii) any other negligent or knowing action that is incon- sistent with this section, such section 503(i), such section 3(d)(1) [42 U.S.C. 1437a(d)(1)], such section 6103(l)(7)(D)(ix), or any such imple- menting regulation may bring a civil action for damages and such other relief as may be appropriate against any officer or employee of any public housing agency or owner (or em- ployee thereof) responsible for any such unau- thorized action. The district court of the United States in the district in which the af- fected applicant or participant resides, in which such unauthorized action occurred, or in which the applicant or participant alleged to be responsible for any such unauthorized action resides, shall have jurisdiction in such matters. Appropriate relief that may be or- dered by such district courts shall include rea- sonable attorney’s fees and other litigation costs. (d) Effective date (1) In general Except as provided in paragraphs (2) and (3), the provisions of this section shall take effect on September 30, 1989. (2) Optional early implementation At the initiative of a State or an agency of the State, and with the approval of the Sec- retary of Labor, the amendments made by sub- section (c)(1) may be made effective in such State on any date before September 30, 1989, which is more than 90 days after November 7, 1988. (3) Requirements for State agencies In the case of any State the legislature of which has not been in session for at least 30 calendar days (whether or not consecutive) be- tween November 7, 1988, and September 30, 1989, the amendments made by subsection (c)(1) shall take effect 30 calendar days after the first day on which such legislature is in session on or after September 30, 1989. (e) Conditions of release of information by third parties An applicant or participant under any pro- gram of the Department of Housing and Urban Development may not be required or requested to consent to the release of information by third parties as a condition of initial or continuing eligibility for participation in the program un- less— (1) the request for consent is made, and the information secured is maintained, in accord- ance with this section,2 section 552a of title 5; and (2) the consent that is requested is appro- priately limited, with respect to time and in- formation relevant and necessary to meet the requirements of this section. (Pub. L. 100–628, title IX, § 904, Nov. 7, 1988, 102 Stat. 3259; Pub. L. 102–550, title IX, § 903(a), Oct. 28, 1992, 106 Stat. 3867; Pub. L. 103–66, title III, § 3003, Aug. 10, 1993, 107 Stat. 338; Pub. L. 105–276, title V, § 508(d)(2), Oct. 21, 1998, 112 Stat. 2529; Pub. L. 106–74, title II, § 214(b), Oct. 20, 1999, 113 Stat. 1074.) Editorial Notes REFERENCES IN TEXT The United States Housing Act of 1937, referred to in subsec. (a)(4), is act Sept. 1, 1937, ch. 896, as revised gen- erally by Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653. Title II of the Act, which was classified generally to subchapter II (§ 1437aa et seq.) of chapter 8 of this title, was repealed by Pub. L. 104–330, title V, § 501(a), Oct. 26, 1996, 110 Stat. 4041. For complete classi- fication of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. The amendments made by subsection (c)(1), referred to in subsec. (d)(2), (3), mean the amendments made by section 904(c)(1) of Pub. L. 100–628, which enacted sec- tion 503(i) and amended section 504(a)(2) of this title. See Codification note below. CODIFICATION Section is comprised of section 904 of Pub. L. 100–628. Subsec. (c)(1) of section 904 of Pub. L. 100–628 amended sections 503 and 504 of this title. Section was enacted as part of the Stewart B. McKin- ney Homeless Assistance Amendments Act of 1988, and not as part of the Department of Housing and Urban Development Act which comprises this chapter. AMENDMENTS 1999—Subsec. (b)(4). Pub. L. 106–74 inserted ‘‘, or the owner responsible for determining the participant’s eli- Page 5940 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 3545 gibility or level of benefits,’’ after ‘‘appropriate public housing agency’’ and substituted ‘‘verifying income’’ for ‘‘the public housing agency verifying income’’. 1998—Subsec. (b)(4). Pub. L. 105–276, § 508(d)(2)(A), which directed the amendment of subsec. (b) by adding par. (4) at end, was executed by adding par. (4) after par. (3), to reflect the probable intent of Congress. Subsec. (c)(2)(A). Pub. L. 105–276, § 508(d)(2)(B)(i), in introductory provisions, inserted ‘‘, pursuant to sec- tion 3(d)(1) of the United States Housing Act of 1937 from the applicant or participant,’’ after ‘‘unemploy- ment compensation law’’ and ‘‘or 3(d)(1)’’ after ‘‘such section 503(i)’’. Subsec. (c)(3)(A). Pub. L. 105–276, § 508(d)(2)(B)(ii)(I), (II), in first sentence, inserted ‘‘, section 3(d)(1) of the United States Housing Act of 1937,’’ after ‘‘503(i) of this title’’ and ‘‘or agreement, as applicable,’’ after ‘‘con- sent’’. Subsec. (c)(3)(B). Pub. L. 105–276, § 508(d)(2)(B)(ii)(III), (IV), in first sentence, inserted ‘‘section 3(d)(1) of the United States Housing Act of 1937,’’ after ‘‘503(i) of this title,’’ and ‘‘such section 3(d)(1),’’ after ‘‘such section 503(i),’’ wherever appearing. 1993—Subsec. (a)(4). Pub. L. 103–66, § 3003(1), added par. (4). Subsec. (b). Pub. L. 103–66, § 3003(2)(D), in concluding provisions, substituted ‘‘Except as provided in this sub- section, this’’ for ‘‘This’’. Subsec. (b)(3). Pub. L. 103–66, § 3003(2)(A)–(C), added par. (3). Subsec. (c). Pub. L. 103–66, § 3003(5), struck out ‘‘State employment’’ after ‘‘Access to’’ in heading. Subsec. (c)(2)(A). Pub. L. 103–66, § 3003(3)(A)(i), in in- troductory provisions, inserted ‘‘or pursuant to section 6103(l)(7)(D)(ix) of title 26 from the Commissioner of So- cial Security or the Secretary of the Treasury’’ after ‘‘compensation law’’ and ‘‘(in the case of information obtained pursuant to such section 503(i))’’ before ‘‘rep- resentatives’’. Subsec. (c)(2)(A)(ii). Pub. L. 103–66, § 3003(3)(A)(ii), substituted ‘‘owner or public housing agency’’ for ‘‘owner’’ wherever appearing. Subsec. (c)(2)(B)(i) to (iii). Pub. L. 103–66, § 3003(3)(B), substituted ‘‘wages, other earnings or income,’’ for ‘‘wages’’ wherever appearing. Subsec. (c)(3)(A). Pub. L. 103–66, § 3003(4)(A), inserted ‘‘or section 6103(l)(7)(D)(ix) of title 26 without consent pursuant to subsection (b) of this section or’’ after ‘‘section 503(i) of this title’’. Subsec. (c)(3)(B)(i). Pub. L. 103–66, § 3003(4)(B)(i), added cl. (i) and struck out former cl. (i) which read as fol- lows: ‘‘a negligent or knowing disclosure of information referred to in this section or in section 503(i) of this title about such person by an officer or employee of any public housing agency or owner (or employee thereof), which disclosure is not authorized by this section, such section 503(i), or any regulation implementing this sec- tion or such section 503(i), or’’. Subsec. (c)(3)(B)(ii). Pub. L. 103–66, § 3003(4)(B)(ii), in- serted ‘‘such section 6103(l)(7)(D)(ix),’’ after ‘‘503(i)’’. 1992—Subsec. (e). Pub. L. 102–550 added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as other- wise provided, with provision that Secretary may im- plement amendment before such date, except to extent that such amendment provides otherwise, and with sav- ings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM IN CERTAIN FRAUD AND ABUSE PREVENTION MEASURES Pub. L. 114–201, title V, § 501, July 29, 2016, 130 Stat. 811, provided that: ‘‘The Disaster Housing Assistance Program administered by the Department of Housing and Urban Development shall be considered a ‘program of the Department of Housing and Urban Development’ under section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.’’ RELEASE FORMS Pub. L. 102–550, title IX, § 903(b), Oct. 28, 1992, 106 Stat. 3868, directed Secretary of Housing and Urban Develop- ment, not later than the expiration of the 180-day pe- riod beginning Oct. 28, 1992, to develop a release form that fulfilled the requirements of this section and pro- vided that during the period beginning Oct. 28, 1992, and ending upon implementation of the use of the new form, the benefits provided to an applicant or partici- pant under any program of Department of Housing and Urban Development, or eligibility for such benefits, could not be terminated, denied, suspended, or reduced because of any failure to sign any form authorizing the release of information from any third party, if the ap- plicant or participant otherwise disclosed all financial information relating to the application or recertifi- cation. § 3545. HUD accountability (a) Notice regarding assistance (1) Publication of notice of availability The Secretary shall publish in the Federal Register notice of the availability of any as- sistance under any program or discretionary fund administered by the Secretary. (2) Publication of application procedures The Secretary shall publish in the Federal Register a description of the form and proce- dures by which application for the assistance may be made, and any deadlines relating to the award or allocation of the assistance. Such description shall be designed to help eligible applicants to apply for such assistance. (3) Publication of selection criteria Not less than 30 days before any deadline by which applications or requests for assistance under any program or discretionary fund ad- ministered by the Secretary must be sub- mitted, the Secretary shall publish in the Fed- eral Register the criteria by which selection for the assistance will be made. Subject to sec- tion 1439 of this title, such criteria shall in- clude any objective measures of housing need, project merit, or efficient use of resources that the Secretary determines are appropriate and consistent with the statute under which the assistance is made available. (4) Documentation of decisions (A) The Secretary shall award or allocate as- sistance only in response to a written applica- tion in a form approved in advance by the Sec- retary, except where other award or allocation procedures are specified in statute. (B) The Secretary shall ensure that docu- mentation and other information regarding each application for assistance is sufficient to indicate the basis on which any award or allo- cation was made or denied. The preceding sen- tence shall apply to— (i) any application for an award or alloca- tion of assistance made by the Secretary to a State, unit of general local government, or other recipient of assistance, and (ii) any application for a subsequent award or allocation of such assistance by such