---
kind: "section"
citation: "42 U.S.C. § 1437z–2"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1437z–2"
heading: "Public housing mortgages and security interests"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1437z-2"
units:
  - "Chapter 8 — Low-Income Housing"
  - "Subchapter I — General Program of Assisted Housing"
---

# §1437z–2. Public housing mortgages and security interests

- (a) **General authorization—** The [Secretary](/usc/42/242q–4.md?p=2) may, upon such terms and conditions as the [Secretary](/usc/42/242q–4.md?p=2) may prescribe, authorize a public housing [agency](/usc/42/8262.md?p=1) to mortgage or otherwise grant a security interest in any public housing [project](/usc/42/13641.md?p=2) or other property of the public housing [agency](/usc/42/8262.md?p=1).
- (b) **Terms and conditions—** In making any authorization under [subsection (a)](#a), the [Secretary](/usc/42/242q–4.md?p=2) may consider—
  - (1) the ability of the public housing [agency](/usc/42/8262.md?p=1) to use the proceeds of the mortgage or security interest for low-income housing uses;
  - (2) the ability of the public housing [agency](/usc/42/8262.md?p=1) to make payments on the mortgage or security interest; and
  - (3) such other criteria as the [Secretary](/usc/42/242q–4.md?p=2) may specify.
- (c) **No Federal liability—** No action taken under this section shall result in any liability to the Federal Government.

## Source credit

(Sept. 1, 1937, ch. 896, title I, § 30, as added Pub. L. 105–276, title V, § 516, Oct. 21, 1998, 112 Stat. 2550.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement section before such date except to extent otherwise provided, see section 503 of Pub. L. 105–276, set out as an Effective Date of 1998 Amendment note under section 1437 of this title.