N.Y. Private Housing Finance Law § 556: Tax exemptions

§ 556. Tax exemptions. Notwithstanding the provisions of section

fifty-two, subdivisions three and four of the public housing law, or of

sections thirty-three or ninety-three of this chapter, the real property

in a project sold or leased as provided in this article, when the

transfer thereunder becomes effective, shall be exempt from local and

municipal taxes, other than assessments for local improvements, only to

such extent as may be granted by the local legislative body of any

municipality in which such project is located; provided, however, that

any company to which such project is so sold or leased shall pay, with

respect to each such project, local and municipal taxes in amounts not

less than the sum or sums which the authority would be obligated to pay

to the municipality had it not sold or leased the project to such

company. The tax exemption shall operate and continue (1) so long as

capital loans of the company to which such project shall have been sold

or leased are outstanding, or in case of lease, so long as obligations

of the municipality or authority to the government granting financial

assistance to the municipality or authority with respect to the project

so leased shall continue and (2) until and unless the project shall be

repossessed by the authority or municipality. Any project that received

a tax exemption under this section may, upon the expiration of the tax

exemption period, be granted an additional tax exemption period of up to

fifty years, or until such time as the project is no longer operated

under the restrictions and for the purposes set forth in this article,

whichever is sooner.