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

(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.

(Sept. 1, 1937, ch. 896, title I, §11, as added Pub. L. 93–383, title II, §201(a), Aug. 22, 1974, 88 Stat. 667 ; amended Pub. L. 97–35, title III, §322(c), Aug. 13, 1981, 95 Stat. 402 ; renumbered title I, Pub. L. 100–358, §5, June 29, 1988, 102 Stat. 681 ; Pub. L. 101–625, title V, §572(2), Nov. 28, 1990, 104 Stat. 4236 .)

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 Amendment

Amendment 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.