N.Y. Public Housing Law § 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.