42 U.S.C. § 1437q
Financing limitations (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
On and after , the Secretary— may only enter into contracts for annual contributions regarding obligations financing public housing projects authorized by if such obligations are exempt from taxation under , or if such obligations are issued under and such obligations are exempt from taxation; and may not enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of ) issued by local public housing agencies for purposes of financing public housing projects authorized by .
Under 42 U.S.C. § 1437q, this provision places two distinct restrictions on the federal Secretary's authority when it comes to financing public housing projects. First, annual contribution contracts tied to project financing obligations are only permissible when those obligations carry tax-exempt status under the relevant statutory provisions. Second, the Secretary is barred from entering into contracts that would make periodic payments to the Federal Financing Bank to offset the Bank's costs of purchasing obligations issued by local public housing agencies for authorized public housing projects.
Plain English — not legal advice.
Property owners and managers involved with public housing projects authorized under the relevant statutes should be aware that 42 U.S.C. § 1437q shapes the federal financing structures available for such developments. Compliant operators working within the public housing framework generally ensure that any financing obligations associated with annual contribution contracts meet the tax-exemption requirements outlined in the provision. Understanding these federal financing limitations can inform how housing authorities and their partners structure project financing arrangements.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Residents of public housing projects may find it useful to understand that 42 U.S.C. § 1437q governs how the federal government can finance the public housing developments in which they live, which can affect the long-term stability and funding of those projects. While this provision primarily addresses federal contracting authority rather than direct tenant rights, tenants who have concerns about the financial administration of their public housing development can raise questions with their local public housing authority. Tenant-rights organizations and legal aid offices can also help residents understand how federal financing rules under this provision may relate to the operation of their housing.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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