---
kind: "section"
citation: "42 U.S.C. § 1437q"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1437q"
heading: "Financing limitations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1437q"
units:
  - "Chapter 8 — Low-Income Housing"
  - "Subchapter I — General Program of Assisted Housing"
---

# §1437q. Financing limitations


On and after October 1, 1983, the [Secretary](/usc/42/242q–4.md?p=2)—

- (1) may only enter into contracts for annual contributions regarding obligations financing public housing [projects](/usc/42/13641.md?p=2) authorized by [section 1437c(c) of this title](/usc/42/1437c.md?p=c) if such obligations are exempt from taxation under [section 1437i(b) of this title](/usc/42/1437i.md?p=b), or if such obligations are issued under [section 1437b of this title](/usc/42/1437b.md) and such obligations are exempt from taxation; and
- (2) 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 [section 2294(b) of title 12](/usc/12/2294.md?p=b)) issued by local public housing [agencies](/usc/42/8262.md?p=1) for purposes of financing public housing [projects](/usc/42/13641.md?p=2) authorized by [section 1437c(c) of this title](/usc/42/1437c.md?p=c).

## Source credit

(Sept. 1, 1937, ch. 896, title I, § 19, as added Pub. L. 98–181, title I [title II, § 215], Nov. 30, 1983, 97 Stat. 1185; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681.)