HUD Handbook 4350.3 § 5-19

A.     Federal law limits the information owners can collect about an applicant or tenant
                to only information that is necessary to determine eligibility and level of
                assistance.

         B.     Federal privacy requirements also establish the responsibility of owners and their
                employees to use information provided by applicants and tenants only for
                specified program purposes and to prevent the use or disclosure of this
                information for other purposes.

                1.       To help ensure the privacy of applicant and tenant information, owners
                         and their employees are subject to penalties for unauthorized disclosure

of applicant/tenant information. In addition, applicants and tenants may
                         initiate civil action against an owner for unauthorized disclosure or
                         improper use of the information they provided. Language on the HUD-
                         required consent forms, the verification forms developed by owners, and
                         the HUD-50059 clearly describes owners’ responsibility regarding the
                         privacy of this information and the possible penalties.

                2.       HUD encourages owners to develop their own procedures and internal
                         controls to prevent the improper use or unauthorized disclosure of
                         information about applicants and tenants. Adequate procedures and
                         controls protect not only applicants and tenants, but also owners.

         C.     Owners must also comply with state privacy laws concerning the information they
                receive from third-party sources about applicants and tenants. These laws
                generally require confidentiality and restrict the uses of this information.