N.Y. Private Housing Finance Law § 558: Subsidies

§ 558. Subsidies. 1. The obligation of the state to pay periodic

subsidies to an authority or municipality for a project which has been

leased or sold to a housing company, and the obligation of a

municipality to make subsidies in at least an equal amount, as required

by section seventy-three of the public housing law, shall cease as of

the last day of the fiscal year next after the effective date of the

grant, sale, lease or conveyance.

2. In the event that an authority or municipality which has granted,

sold, leased or conveyed a project to a housing company, for any reason

or in any way resumes possession of such project, the obligations of the

state and municipality to pay subsidies, as provided by the terms of

section seventy-three of the public housing law, shall be deemed

restored as of the first day of the fiscal year next prior to the date

of such resumption of possession of such project.