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Title 42, The Public Health and WelfareRelease 119-102

§1546 Payment of Annual Sums to Local Authorities in Lieu of Taxes

Title 42 › CHAPTER 9 — HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE › SUBCHAPTER IV — GENERAL PROVISIONS AFFECTING SUBCHAPTERS II TO VII › § 1546

Last updated Aug 21, 2026|Official source

Summary

HUD must pay yearly sums from rent to states or local governments for real property it owns under subchapters II–VII, including any buildings or improvements. The payment should be about the same as the property taxes that would be owed if the property were not tax-exempt, but HUD can lower the amount to reflect government spending for streets, utilities, or other services for the property. "State" includes the District of Columbia.

Full Legal Text

Title 42, §1546

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

The Secretary of Housing and Urban Development shall pay from rentals annual sums in lieu of taxes to any State and/or political subdivision thereof, with respect to any real property acquired and held by him under subchapters II to VII of this chapter, including improvements thereon. The amount so paid for any year upon such property shall approximate the taxes which would be paid to the State and/or subdivision, as the case may be, upon such property if it were not exempt from taxation, with such allowance as may be considered by him to be appropriate for expenditure by the Government for streets, utilities, or other public services to serve such property. As used in this section the term “State” shall include the District of Columbia.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Subchapters III and VI of this chapter, referred to in text, were comprised of sections 1531 to 1536 and 1571 to 1576, respectively, of this title and have been omitted from the Code. For further details, see note set out under section 1522 of this title. Codification Words “including any Territory or possession of the United States” appearing in text prior to amendment by act Jan. 21, 1942, inserted on authority of act June 28, 1941, ch. 260, § 4(b), 55 Stat. 363, which provided that when used in this section the term “ ‘State’ includes any Territory or possession of the United States”.

Amendments

1950—Act Apr. 20, 1950, substituted “Housing and Home Finance Administrator” for “National Housing Administrator”. 1942—Act Apr. 10, 1942, inserted last sentence. Act Jan. 21, 1942, amended section generally.

Statutory Notes and Related Subsidiaries

Transfer of Functions

For

Transfer of Functions

to Secretary of Housing and Urban Development, see note set out under section 1522 of this title.

Executive Documents

Transfer of Functions

Functions of Federal Works Administrator relating to defense housing consolidated with other agencies into National Housing Agency during World War II by Ex. Ord. No. 9070.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1546

Title 42, The Public Health and Welfare

Last Updated

Aug 21, 2026

Release point: 119-102