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

 
    §  2049-ff. Governmental capacity of the authority and municipalities.
  The counties, other municipalities within the area of operation and  the
  authority, 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 authority shall be deemed to be the performance of  an
  essential   governmental   function  by  the  authority  acting  in  its
  governmental capacity, whether such project shall be owned  or  operated
  by the authority or by any person or other public corporation.