2006 New York Code - Governmental Capacity Of The Agency And Municipalities.

 
    § 2047-f*. Governmental capacity of the agency and municipalities. The
  county,  other  municipalities  within  the  county  and  the  agency in
  carrying out their respective powers and duties under this  title  shall
  be  deemed  to  be  acting in a governmental capacity. The construction,
  operation and maintenance of any project financed in whole or in part by
  the agency, shall be deemed  to  be  the  performance  of  an  essential
  governmental function by the agency acting in its governmental capacity,
  whether  such project shall be owned or operated by the agency or by any
  person or other public corporation.