
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC3544]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
         CHAPTER 44--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
Sec. 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.

                     (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 lending 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 Indian housing programs assisted under title 
    II \1\ of the United States Housing Act of 1937.
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    \1\ See References in Text note below.
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(b) Applicant and participant consent

    As a condition of initial or continuing eligibility for 
participation in any program of the Department of Housing and Urban 
Development involving initial and periodic review of an applicant's or 
participant's income, and to assure that the level of benefits provided 
under the program is correct, the Secretary may require that an 
applicant or participant--
        (1) sign a consent form approved by the Secretary 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 Secretary 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 applicant or 
    participant or information regarding whether such applicant or 
    participant is receiving, has received, or has made application for, 
    unemployment compensation, and the amount of any such compensation 
    being received (or to be received) by such applicant or participant;
        (3) sign a consent form approved by the Secretary authorizing 
    the Secretary to request the Commissioner of Social Security and the 
    Secretary of the Treasury to release information pursuant to section 
    6103(l)(7)(D)(ix) of title 26 with respect to such applicant or 
    participant 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 participant 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 agreement 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 income 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 consent 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 recipients of, 
    benefits under the programs of the Department of Housing and Urban 
    Development from the improper use of information obtained 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 applicant or 
    participant, or pursuant to section 6103(l)(7)(D)(ix) of title 26 
    from the Commissioner of Social Security or the Secretary of the 
    Treasury, officers and employees of the Department of Housing and 
    Urban Development 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 
    information--
            (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 housing agency 
        responsible for determining eligibility for or level of 
        benefits, to inform such owner or public housing agency that an 
        applicant'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 
        income information.

        (B) No Federal, State, or local agency, or public housing 
    agency, or owner responsible for determining eligibility for or 
    level of benefits receiving such information may terminate, deny, 
    suspend, or reduce any benefits of an applicant or participant until 
    such agency or owner has taken appropriate steps to independently 
    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 respect to which, 
        the applicant or participant actually received such wages, other 
        earnings or income, or benefits.

        (C) Such applicant or participant shall be informed by the 
    agency or owner of the findings 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 concerning 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 
    consent 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 Department of Housing and Urban Development, an officer or 
    employee of any public housing agency, and any owner responsible for 
    determining eligibility for or level of benefits (or employee 
    thereof).
        (B) Any applicant or participant affected by (i) a negligent or 
    knowing disclosure of information 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 employee 
    thereof), which disclosure is not authorized 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 implementing 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 
    consent, pursuant to subsection (b) of this section, has not been 
    granted, or (ii) any other negligent or knowing action that is 
    inconsistent 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 implementing 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 
    employee thereof) responsible for any such unauthorized action. The 
    district court of the United States in the district in which the 
    affected 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 ordered by such district courts shall include 
    reasonable 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 Secretary of Labor, the amendments made by 
    subsection (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) between 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 program 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 
unless--
        (1) the request for consent is made, and the information secured 
    is maintained, in accordance with this section,\2\ section 552a of 
    title 5; and
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    \2\ So in original. The comma probably should be ``and''.
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        (2) the consent that is requested is appropriately limited, with 
    respect to time and information relevant and necessary to meet the 
    requirements of this section.

(Pub. L. 100-628, title IX, Sec. 904, Nov. 7, 1988, 102 Stat. 3259; Pub. 
L. 102-550, title IX, Sec. 903(a), Oct. 28, 1992, 106 Stat. 3867; Pub. 
L. 103-66, title III, Sec. 3003, Aug. 10, 1993, 107 Stat. 338; Pub. L. 
105-276, title V, Sec. 508(d)(2), Oct. 21, 1998, 112 Stat. 2529; Pub. L. 
106-74, title II, Sec. 214(b), Oct. 20, 1999, 113 Stat. 1074.)

                       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 generally by Pub. L. 
93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and amended. 
Title II of the Act, which was classified generally to subchapter II 
(Sec. 1437aa et seq.) of chapter 8 of this title, was repealed by Pub. 
L. 104-330, title V, Sec. 501(a), Oct. 26, 1996, 110 Stat. 4041. For 
complete classification 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 section 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. McKinney 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 eligibility 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, Sec. 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, Sec. 508(d)(2)(B)(i), in 
introductory provisions, inserted ``, pursuant to section 3(d)(1) of the 
United States Housing Act of 1937 from the applicant or participant,'' 
after ``unemployment compensation law'' and ``or 3(d)(1)'' after ``such 
section 503(i)''.
    Subsec. (c)(3)(A). Pub. L. 105-276, Sec. 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 ``consent''.
    Subsec. (c)(3)(B). Pub. L. 105-276, Sec. 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, Sec. 3003(1), added par. (4).
    Subsec. (b). Pub. L. 103-66, Sec. 3003(2)(D), in concluding 
provisions, substituted ``Except as provided in this subsection, this'' 
for ``This''.
    Subsec. (b)(3). Pub. L. 103-66, Sec. 3003(2)(A)-(C), added par. (3).
    Subsec. (c). Pub. L. 103-66, Sec. 3003(5), struck out ``State 
employment'' after ``Access to'' in heading.
    Subsec. (c)(2)(A). Pub. L. 103-66, Sec. 3003(3)(A)(i), in 
introductory provisions, inserted ``or pursuant to section 
6103(l)(7)(D)(ix) of title 26 from the Commissioner of Social Security 
or the Secretary of the Treasury'' after ``compensation law'' and ``(in 
the case of information obtained pursuant to such section 503(i))'' 
before ``representatives''.
    Subsec. (c)(2)(A)(ii). Pub. L. 103-66, Sec. 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, Sec. 3003(3)(B), 
substituted ``wages, other earnings or income,'' for ``wages'' wherever 
appearing.
    Subsec. (c)(3)(A). Pub. L. 103-66, Sec. 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, Sec. 3003(4)(B)(i), added cl. 
(i) and struck out former cl. (i) which read as follows: ``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 section or such section 503(i), or''.
    Subsec. (c)(3)(B)(ii). Pub. L. 103-66, Sec. 3003(4)(B)(ii), inserted 
``such section 6103(l)(7)(D)(ix),'' after ``503(i)''.
    1992--Subsec. (e). Pub. L. 102-550 added subsec. (e).


                    Effective Date of 1998 Amendment

    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of this title.


                              Release Forms

    Section 903(b) of Pub. L. 102-550 directed Secretary of Housing and 
Urban Development, not later than the expiration of the 180-day period 
beginning Oct. 28, 1992, to develop a release form that fulfilled the 
requirements of this section and provided 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 participant 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 
applicant or participant otherwise disclosed all financial information 
relating to the application or recertification.

                  Section Referred to in Other Sections

    This section is referred to in section 1437f of this title.
