SUPPLEMENTARY INFORMATION:

HUD amends the System of Records Notice (SORN) for HUDCAPS to include substantive changes reflecting the modified items listed below in addition to minor formatting changes:

○ System Name and Number: Updated to reflect the current System Number.

○ Purpose of the System: Made minor updates for clarity.

○ Categories of Records in the System: Made minor updates for clarity. ( printed page 35244)

○ System Managers: Updated to reflect the name of the System Manager.

○ Record Source Categories: Updated to reflect the new and correct office name for the OCFO Accounting Operations Center.

○ Routine Use of Records Maintained in the System:

○ Updated, reworded, and/or renumbered several Routine Uses to be consistent with the standard routine use language used at HUD. The previous SORN had two routine uses labelled, “G.” This has been corrected. The first nine routine uses are the same as previously published with only slight alterations for purposes of clarity made to the routine uses for litigation (4), prevention of fraud, waste, and abuse (7), and research (8).

○ This notice also incorporates Routine Use 10, which was added by 91 FR 2137 (January 16, 2026) to support compliance with Executive Order 14249 and Office of Management and Budget (OMB) Memorandum M-25-32, “Preventing Improper Payments and Protecting Privacy Through Do Not Pay” (August 20, 2025).

○ Added several routine uses in this section to facilitate FOIA mediation (11), to facilitate the disbursement of funds (12), and to allow for certain types of financial reporting (13).

○ Policies and Practices for Storage of Records: Made minor updates for clarity.

○ Policies and Practices for Retrieval of Records: Made minor updates for clarity.

○ Administrative, Technical, and Physical Safeguards: Made minor updates for clarity.

○ Record Access Procedures, Contesting Record Procedures, and Notification Procedures sections: Updated to reflect current guidance.

SYSTEM NAME AND NUMBER:

HUD Central Accounting and Program System (HUDCAPS), HUD/OCFO-03.

SECURITY CLASSIFICATION:

Unclassified.

SYSTEM LOCATION:

HUD Headquarters, 451 7th Street SW, Washington, DC 20410-1001 and National Center for Critical Information Processing and Storage (NCCIPS), National Aeronautics and Space Administration (NASA) Stennis Space Center, MS 39529. The backup data center is at Mid-Atlantic Data Center in Clarksville, VA 23927.

SYSTEM MANAGER(S):

Kate Darling, Assistant Chief Financial Officer for Systems, Office of the Chief Financial Officer, Department of Housing and Urban Development, 451 7th Street SW, Room 3100, Washington, DC 20410-1000.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

31 U.S.C. 3511; The Chief Financial Officers Act of 1990 (31 U.S.C. 901, et seq.); Executive Order 9397, as amended by Executive Order 13478; Housing and Community Development Act of 1987, 42 U.S.C. 3543.

PURPOSE(S) OF THE SYSTEM:

HUDCAPS, managed by the Office of the Chief Financial Officer (OCFO), is a system that serves as a sub-ledger financial system for HUD. HUDCAPS provides the capability of capturing, recording, and summarizing HUD's financial results of operations across all business areas.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

Public Indian Housing (PIH) Section 8 recipients and grantees.

CATEGORIES OF RECORDS IN THE SYSTEM:

Name, Business Tax-ID (can be Social Security Number (SSN)), Employee Identification Number (EIN), and/or Taxpayer Identification Number (TIN), Business/Work address, Data Universal Numbering System (DUNS), Business Banking Account, Business Routing Numbers, and Financial Information.

RECORD SOURCE CATEGORIES:

PIH Section 8 recipients/grantees provide data to the OCFO Accounting Operations CENTER to enter HUDCAPS.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:

(1) To a congressional office from the record of an individual, in response to an inquiry from the congressional office made at the request of that individual.

(2) To appropriate agencies, entities, and persons when (1) HUD suspects or has confirmed that there has been a breach of the system of records; (2) HUD has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, HUD (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with HUD's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.

(3) To another Federal agency or Federal entity, when HUD determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.

(4) To a court, magistrate, administrative tribunal, or arbitrator in the course of presenting evidence, including disclosures to opposing counsel or witnesses or jurors in the course of civil discovery, litigation, mediation, or settlement negotiations; or in connection with criminal law proceedings; when HUD determines that use of such records is relevant and necessary to the litigation and when any of the following is a party to the litigation or have an interest in such litigation: (1) HUD, or any component thereof; or (2) any HUD employee in his or her official capacity; or (3) any HUD employee in his or her individual capacity where HUD has agreed to represent the employee; or (4) the United States, or any agency thereof, where HUD determines that litigation is likely to affect HUD or any of its components.

(5) To any component of the Department of Justice or other Federal agency conducting litigation or in proceedings before any court, adjudicative, or administrative body, when HUD determines that the use of such records is relevant and necessary to the litigation and when any of the following is a party to the litigation or have an interest in such litigation: (1) HUD, or any component thereof; or (2) any HUD employee in his or her official capacity; or (3) any HUD employee in his or her individual capacity where the Department of Justice or agency conducting the litigation has agreed to represent the employee; or (4) the United States, or any agency thereof, where HUD determines that litigation is likely to affect HUD or any of its components.

(6) To appropriate Federal, State, local, tribal, or other governmental agencies or multilateral governmental organizations responsible for investigating or prosecuting the violations of, or for enforcing or implementing, a statute, rule, regulation, order, or license, where HUD determines that the information would assist in the enforcement of civil or criminal laws when such records, either alone or in conjunction with other information, indicate a violation or potential violation of law. ( printed page 35245)

(7) To Federal agencies, non-Federal entities, their employees, and agents (including contractors, their agents or employees; employees or contractors of the agents or designated agents); or contractors, their employees or agents with whom HUD has a contract, service agreement, grant, cooperative agreement, computer matching agreement, or other agreement for the purpose of: (1) Detection, prevention, and recovery of improper payments; (2) detection and prevention of fraud, waste, and abuse in major Federal programs administered by a Federal agency or non-Federal entity; (3) establishing or verifying the eligibility of, or continuing compliance with statutory and regulatory requirements by, applicants for, recipients or beneficiaries of, participants in, or providers of services with respect to, cash or in-kind assistance or payments under Federal benefits programs or recouping payments or delinquent debts under such Federal benefits programs; (4) detection of fraud, waste, and abuse by individuals in their operations and programs. Records under this routine use may be disclosed only to the extent that the information shared is necessary and relevant to verify pre-award and prepayment requirements prior to the release of Federal funds or to prevent and recover improper payments for services rendered under programs of HUD or of those Federal agencies and non-Federal entities to which HUD provides information under this routine use.

(8) To contractors, grantees, experts, consultants, Federal agencies, and non-Federal entities, including, but not limited to, State and local governments and other research institutions or their parties, and entities and their agents with whom HUD has a contract, service agreement, grant, cooperative agreement, or other agreement for the purposes of statistical analysis and research in support of program operations, management, performance monitoring, evaluation, risk management, and policy development, or to otherwise support the Department's mission. Records under this routine use may not be used in whole or in part to make decisions that affect the rights, benefits, or privileges of specific individuals. The entity receiving information under this routine use may not further disclose the records in an identifiable form.

(9) To contractors, grantees, experts, consultants and their agents, or others performing or working under a contract, service, grant, or cooperative agreement with HUD, when necessary to accomplish an agency function related to a system of records. Disclosure requirements are limited to only those data elements considered relevant to accomplishing an agency function.

(10) To the U.S. Department of the Treasury when disclosure of the information is relevant to review payment and award eligibility through the Do Not Pay Working System for the purposes of identifying, preventing, or recouping improper payments to an applicant for, or recipient of, Federal funds, including funds disbursed by a state (meaning a state of the United States, the District of Columbia, a territory or possession of the United States, or a federally recognized Indian tribe) in a state-administered, federally funded program.

(11) To the National Archives and Records Administration, Office of Government Information Services (OGIS), to the extent necessary to fulfill its responsibilities in 5 U.S.C. 552(h), to review administrative agency policies, procedures and compliance with the Freedom of Information Act (FOIA), and to facilitate OGIS' offering of mediation services to resolve disputes between persons making FOIA requests and administrative agencies.

(12) To the U.S. Treasury for transactions such as disbursements of funds and related adjustments.

(13) To the IRS for reporting payments for goods and services and for reporting of discharge indebtedness.

In addition to the routine uses described above, HUD provides notice pursuant to 31 U.S.C. 3711(e) that information contained in this system of records may also be disclosed to a consumer reporting agency when trying to collect a claim owed on behalf of the government. The disclosure is limited to information to establish the identity of the individual, including name, social security number, and address; the amount, status, history of the claim, and the agency or program under which the claim arose solely to allow the consumer reporting agency to prepare a credit report.

POLICIES AND PRACTCES FOR STORAGE OF RECORDS:

Records are maintained in electronic format. The electronic files are stored in the Office of the Chief Financial Officer (OCFO) designated shared drive. The shared drive is restricted to only those with a need-to-know.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:

Records are retrieved by Business Tax ID (which can be SSN, EIN, or TIN).

POLICIES AND PRACTICIES FOR RETENTION AND DISPOSAL OF RECORDS:

General Records Schedule 1:1; Financial Management and Reporting Records. Destroy 6 years after final payment or cancellation, but longer retention is authorized if required for business use.

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:

All HUD employees have undergone background investigations. HUD buildings are guarded and monitored by security personnel, cameras, ID checks, and other physical security measures. Access is restricted to authorized personnel or contractors whose responsibilities require access. System users must take the mandatory security awareness training annually as mandated by the Federal Information Security Management Act (FISMA). Users must also sign a Rules of Behavior form certifying that they agree to comply with the requirements before they are granted access to the system. HUDCAPS resides on the P207 IBM Mainframe general support system, which is at NASA's Stennis Space Center. The physical security controls for P207 IBM Mainframe are the responsibility of OCIO. OCIO handles the backups and encryption of backups on the P207 IBM Mainframe. OCIO is also responsible for the mainframe/LAN-based security controls ( e.g. VPN, encryption of data in transit, IDS). All users authenticate to the HUD LAN with PIV cards before they can access HUDCAPS. OCFO limits access to records that contain PII data on a need-to-know basis, user recertification is performed, audit logs are reviewed, security assessments are performed, and background checks are performed prior to granting elevated access. Not all employees and contractors have access to the vendor table that includes the PII. Updates to HUDCAPS vendor data are limited to those with specific roles.

RECORD ACCESS PROCEDURES:

Individuals requesting records of themselves should address written inquiries to the Department of Housing Urban and Development 451 7th Street SW, Washington, DC 20410-0001. For verification, individuals should provide their full name, current address, and telephone number. In addition, the requester must provide either a notarized statement or an unsworn declaration made under 24 CFR 16.4.

CONTESTING RECORD PROCEDURES:

The HUD rule for contesting the content of any record pertaining to the individual by the individual concerned ( printed page 35246) is published in 24 CFR 16.8 or may be obtained from the system manager.

NOTIFICATION PROCEDURES:

Individuals requesting notification of records of themselves should address written inquiries to the Department of Housing Urban Development, 451 7th Street SW, Washington, DC 20410-0001. For verification purposes, individuals should provide their full name, office or organization where assigned, if applicable, and current address and telephone number. In addition, the requester must provide either a notarized statement or an unsworn declaration made under 24 CFR 16.4.

EXEMPTIONS PROMULGATED FOR THE SYSTEM:

None.

HISTORY:

Docket No. FR-7062-N-11, 87 FR 50638, August 17, 2022; as modified by Docket No. FR-7106-N-12, 91 FR 2137, January 16, 2026.

91 FR 35243