2012 New York Consolidated Laws
PBG - Public Housing
Article 4 - (70 - 76-A) STATE AID
73 - State subsidies.

 
    §  73.  State subsidies. The commissioner may in the name of the state
  enter into contracts to make periodic subsidies (1) to an authority or a
  municipality for one  or  more  projects  to  assist  in  achieving  and
  maintaining  the  low  rent  character  of  a  project,  or,  (2)  to  a
  municipality to assist in the clearance, replanning, reconstruction  and
  rehabilitation  of  substandard  and insanitary areas pursuant to and in
  accordance with the provisions of this chapter,  the  general  municipal
  law and any other laws authorizing municipalities to establish and carry
  out  a  federal  program  of  urban renewal with federal aid, payable in
  either case only with moneys appropriated therefor from the general fund
  of the state, provided, however, (a)  that  no  contracts  for  periodic
  subsidies  shall  be entered into in any one year requiring payments for
  both such purposes aggregating more than two million eight hundred sixty
  thousand dollars in any one year, of which  amount  not  more  than  two
  million five hundred thousand dollars shall be with respect to contracts
  for  payments  to  assist  in  achieving  and  maintaining  the low rent
  character of projects; (b) that there shall not be  outstanding  at  any
  one  time  contracts for periodic subsidies requiring payments exceeding
  an aggregate of forty-four million dollars in any  one  year,  of  which
  amount  not  more than forty-two million fifty thousand dollars shall be
  with respect to contracts  for  payments  to  assist  in  achieving  and
  maintaining  the  low rent character of the projects. All such contracts
  shall be subject to approval  by  the  state  comptroller,  and  by  the
  attorney general as to form.
    The  periodic  subsidy  for  any project shall be payable on an annual
  basis, in amounts which need not be uniform,  over  a  fixed  period  of
  years not exceeding the life of the project assisted by such subsidy and
  in  any  event  for  not more than fifty years. Portions of the periodic
  subsidy payable for any one year may  be  paid  from  time  to  time  as
  required. The period of years during which the periodic subsidy shall be
  payable  shall  commence  on  the  date of substantial completion of the
  project, as determined by the commissioner. The maximum subsidy  payable
  in  any  one year on any one project shall not exceed a sum equal to the
  largest annual interest charge on  funds  borrowed  from  the  state  to
  finance  such  project  plus  one  per  centum  of  the project cost not
  including, however, funds borrowed from the state for working capital.
    Where all or any part of the funds necessary to  finance  the  project
  are borrowed from sources other than the state or federal government the
  periodic  subsidy  may  equal  but  shall  not exceed the largest annual
  interest charge on all borrowed funds plus one per centum of the project
  cost. The periodic subsidies shall be further  limited  to  amounts  and
  periods necessary in the determination of the commissioner to assure the
  low-rent character of the project involved.
    The contract of the commissioner providing for such periodic subsidies
  shall guarantee their payment over such fixed period of years. The faith
  of  the  state  is  pledged  to  the  payment  of all periodic subsidies
  contracted for by the commissioner. Such  periodic  subsidies  shall  be
  paid  upon  the audit and warrant of the state comptroller upon vouchers
  approved by the commissioner.
    No state subsidy shall be made available for any  project  unless  and
  until:  (a)  the  municipality  in  which such project is situated shall
  contract or have contracted to make subsidies  to  such  project  in  an
  amount at least equal to the subsidy contracted to be made by the state,
  all  or  any  part  of  which  municipal  subsidy  may be in the form of
  exemption of the project from county, city, village,  town,  school  and
  special  district  taxes  to the extent specified in subdivision four of
  section fifty-two of this chapter; (b) the findings required by  section
  seventy-one  of  this  chapter  have been made by the commissioner. Such

  findings shall be conclusive evidence of  the  facts  therein  contained
  except  upon  proof of fraud or willful misfeasance by the commissioner.
  For the purpose of determining the amount of subsidy to  be  paid  by  a
  municipality  in  any  year  pursuant to clause (a) of this paragraph, a
  project shall be deemed to have been granted tax exemption for that year
  for so much of the actual incurred development cost of  the  project  at
  the close of the period for which state subsidy is payable as represents
  an  increase over the assessed valuation of the real property, both land
  and improvements, included in the project on the date  of  the  contract
  for  a state subsidy, notwithstanding the fact that at the close of such
  period tax assessments or assessment-rolls reflecting the  actual  value
  of the project have not as yet been prepared, entered, or completed, nor
  that  the due date for the payment of the taxes has not as yet occurred,
  and provided further that whenever  there  has  been  a  change  in  the
  overall level of assessment and the commissioner of taxation and finance
  has certified a percentage change in the level of assessment pursuant to
  the provisions of subdivision four of section fifty-two of this chapter,
  the  value of the tax exemption shall be computed by multiplying the tax
  rate which is to be applied to the  assessed  value  deemed  to  be  tax
  exempt  under  this  paragraph  by the percentage change in the level of
  assessment plus one hundred percent.