---
kind: "section"
citation: "42 U.S.C. § 1592g"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1592g"
heading: "Payment of annual sums to local authorities in lieu of taxes"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1592g"
units:
  - "Chapter 9 — Housing of Persons Engaged in National Defense"
  - "Subchapter IX — Defense Housing and Community Facilities and Services"
---

# §1592g. Payment of annual sums to local authorities in lieu of taxes


The [Secretary](/usc/42/242q–4.md?p=2) of Housing and Urban Development shall pay from rentals annual sums in lieu of taxes and special assessments to any [State](/usc/42/2021b.md?p=14) and/or political subdivision thereof, with respect to any real property, including improvements thereon, acquired and held by the [Secretary](/usc/42/242q–4.md?p=2) 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](/usc/42/2021b.md?p=14) 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](/usc/42/242q–4.md?p=2) 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.


## Source credit

(Sept. 1, 1951, ch. 378, title III, § 308, 65 Stat. 307; Pub. L. 89–174, § 5(a), Sept. 9, 1965, 79 Stat. 669.)

## Notes

### 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.