Title 42 — The Public Health and WelfareRelease 119-73not60

§1592g Payment of Annual Sums to Local Authorities in Lieu of Taxes

Title 42 › Chapter 9— HOUSING OF PERSONS ENGAGED IN NATIONAL DEFENSE › Subchapter IX— DEFENSE HOUSING AND COMMUNITY FACILITIES AND SERVICES › § 1592g

Last updated Apr 5, 2026|Official source

Summary

The Secretary of Housing and Urban Development must use rent money to pay yearly amounts to the state or local government instead of property taxes and local charges for real property HUD owns for housing or for small, related businesses. The payment should be about the same as the taxes and local charges the property would owe if it were not tax-exempt. The Secretary can lower the payment to reflect any federal spending on streets, utilities, or other public services that serve the property. This applies even if the land is under exclusive federal control.

Full Legal Text

Title 42, §1592g

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 and special assessments to any State and/or political subdivision thereof, with respect to any real property, including improvements thereon, acquired and held by the Secretary under this subchapter for residential purposes (or for commercial purposes incidental thereto), whether or not such property is or has been held in the exclusive jurisdiction of the United States. The amount so paid for any year upon such property shall approximate the taxes and special assessments 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 and special assessments, with such allowance as may be considered by the Secretary to be appropriate for expenditures by the Federal Government for the provision or maintenance of streets, utilities, or other public services to serve such property.

Legislative History

Notes & Related Subsidiaries

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 1581 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1592g

Title 42 — The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60