Title 42The Public Health and WelfareRelease 119-73not60

§1506 Administration of Utilities and Utility Services; Granting of Easements

Title 42 › Chapter 9— HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE › Subchapter I— PROJECTS GENERALLY › § 1506

Last updated Apr 5, 2026|Official source

Summary

Federal agencies, including government-owned corporations, may keep providing utility connections and services to housing that HUD oversees. They can make contracts with buyers or new owners to keep those connections and supply utilities for no longer than the federal government runs the installations. The agency sets the terms, and users may have to pay either their share of the government's cost or the market value of the utilities, whichever is higher. Agencies can sell extra installations or offer buyers an option to purchase for at least the appraised value. If an agency owns land crossed by those utility lines, it may grant HUD or the buyers easements on that land for utility use, including permanent easements.

Full Legal Text

Title 42, §1506

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

(a)Any Federal agency (including any wholly owned Government corporation) administering utility installations connected to a utility system for housing under the jurisdiction of the Secretary of Housing and Urban Development is authorized—
(1)to continue to provide utilities and utility services to such housing as long as it is under the jurisdiction of the Secretary;
(2)to contract with the purchasers or transferees of such housing to continue the utility connection with such installations and furnish such utilities and services as may be available and needed in connection with such housing, for such period of time (not exceeding the period of Federal administration of such installations) and subject to such terms (including the payment of the pro rata cost to the Government or the market value of the utilities and services furnished, whichever is greater) as may be determined by the head of the agency;
(3)to dispose of such installations, when excess to the needs of the agency, and where not excess to grant an option to purchase, to the purchasers or transferees of such housing, for an amount not less than the appraised value of the installations and upon such terms and conditions as the head of the agency shall establish.
(b)Any Federal agency (including any wholly owned Government corporation) having under its jurisdiction lands across which run any part of a utility system for housing under the jurisdiction of the Secretary is authorized to grant to the Secretary, or to the purchasers or transferees of such housing, easements (which may be perpetual) on such land for utility purposes.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was not enacted as part of title II of act June 28, 1948, ch. 440, 54 Stat. 681, known as title II of the National Defense Expediting Act which comprises this subchapter.

Statutory Notes and Related Subsidiaries

Transfer of Functions

Functions of Public Housing Administration and Housing and Home Finance Agency (of which Public Housing Administration was a constituent agency) and of heads thereof transferred to Secretary of Housing and Urban Development by Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669, which is classified to section 3534(a) of this title. section 9(c) of such act, set out as a note under section 3531 of this title, provided that references to Housing and Home Finance Agency or to any agency or officer therein are to be deemed to mean Secretary of Housing and Urban Development and that Housing and Home Finance Agency and Public Housing Administration have lapsed.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1506

Title 42The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60