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Title 42 — The Public Health and WelfareRelease 119-73

§1437i Obligations of public housing agencies; contestability; full faith and credit of United States pledged as security; tax exemption

Title 42 › Chapter CHAPTER 8— - LOW-INCOME HOUSING › Subchapter SUBCHAPTER I— - GENERAL PROGRAM OF ASSISTED HOUSING › § 1437i

Last updated Apr 6, 2026|Official source

Summary

When a public housing agency issues debt for low-income housing and that debt is backed by a loan, or by yearly contributions under a contract with the Secretary, or by both, and the Secretary gives a certificate saying it is so backed, the person who holds that debt cannot challenge it. The United States pledges its full faith and credit to pay any amounts the Secretary agreed to pay as security for those obligations. Except as provided in section 1437c(g) of this title, those obligations and their interest are exempt from all United States taxes now or later imposed, whether paid by the agency or by the Secretary. The income the agencies earn from those projects is also exempt from all United States taxes now or later imposed.

Full Legal Text

Title 42, §1437i

The Public Health and Welfare — Source: USLM XML via OLRC

(a)Obligations issued by a public housing agency in connection with low-income housing projects which (1) are secured (A) by a pledge of a loan under any agreement between such public housing agency and the Secretary, or (B) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary, or (C) by a pledge of both annual contributions under an annual contributions contract and a loan under an agreement between such public housing agency and the Secretary, and (2) bear, or are accompanied by, a certificate of the Secretary that such obligations are so secured, shall be incontestable in the hands of a bearer and the full faith and credit of the United States is pledged to the payment of all amounts agreed to be paid by the Secretary as security for such obligations.
(b)Except as provided in section 1437c(g) of this title, obligations, including interest thereon, issued by public housing agencies in connection with low-income housing projects shall be exempt from all taxation now or hereafter imposed by the United States whether paid by such agencies or by the Secretary. The income derived by such agencies from such projects shall be exempt from all taxation now or hereafter imposed by the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 11 of act Sept. 1, 1937, ch. 896, 50 Stat. 893, as amended, authorized capital grants to public housing agencies in assistance of low rentals and was classified to section 1411 of this title, prior to the general revision of this chapter by Pub. L. 93–383.

Amendments

1990—Pub. L. 101–625 substituted “low-income housing” for “lower income housing” wherever appearing. 1981—Pub. L. 97–35 substituted reference to lower income for reference to low-income wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1981 AmendmentAmendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an

Effective Date

note under section 3701 of Title 12, Banks and Banking.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1437i

Title 42 — The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73