HUD updates privacy records for multifamily loan servicing system
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This notice updates HUD’s Privacy Act record for its Comprehensive Servicing and Monitoring System, which tracks multifamily loans, property operations, payments, expenses, and tenant information. For housing operators, lenders, vendors, and tenants in HUD-owned or HUD-insured multifamily properties, the main impact is that the system now formally covers the 542(b) and 542(c) Risk Share Program and related direct loans. The update also expands and refreshes the uses of personal and financial data, including sharing for fraud prevention, eligibility checks, FOIA dispute resolution, and payment review. HUD is also changing retention details and system identifiers, while keeping the records under electronic and paper safeguards.
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Key Changes
- Adds the 542(b) and 542(c) Risk Share Program and related direct loans to the CSMS privacy record.
- Updates routine uses to cover fraud, waste and abuse detection, FOIA dispute support through OGIS, and Do Not Pay payment review.
- Revises the system number, manager, retention rules, and other recordkeeping details.
Obligations
What this law requires
HUD must maintain the Comprehensive Servicing and Monitoring System (CSMS) as a Privacy Act system of records covering multifamily loan servicing, property operations, payments, expenses, tenant lease information, and the 542(b)/542(c) Risk Share Program direct loans.
HUD must limit disclosure of CSMS records to the routine uses stated in the notice, including fraud prevention, eligibility verification, FOIA dispute resolution via OGIS, IRS reporting, escrow interest reporting, litigation, and improper payment review.
HUD must disclose CSMS records to Federal agencies, contractors, and other authorized entities only to the extent the information is necessary and relevant for detecting or preventing improper payments, fraud, waste, and abuse, and for verifying eligibility or compliance for Federal benefits programs.
HUD must provide CSMS data to the National Archives and Records Administration's Office of Government Information Services (OGIS) when necessary to review FOIA compliance and facilitate mediation of FOIA disputes.
HUD must report payments, forgiveness of debt, and property sales to the IRS under section 6109 of the Internal Revenue Code.