N.Y. PBG Law § 73 — New York Code / Act PBG / Article 4 / Section 73
State subsidies
Status: in_force

§ 73. State subsidies. The commissioner may in the name of the state\nenter into contracts to make periodic subsidies (1) to an authority or a\nmunicipality for one or more projects to assist in achieving and\nmaintaining the low rent character of a project, or, (2) to a\nmunicipality to assist in the clearance, replanning, reconstruction and\nrehabilitation of substandard and insanitary areas pursuant to and in\naccordance with the provisions of this chapter, the general municipal\nlaw and any other laws authorizing municipalities to establish and carry\nout a federal program of urban renewal with federal aid, payable in\neither case only with moneys appropriated therefor from the general fund\nof the state, provided, however, (a) that no contracts for periodic\nsubsidies shall be entered into in any one year requiring payments for\nboth such purposes aggregating more than two million eight hundred sixty\nthousand dollars in any one year, of which amount not more than two\nmillion five hundred thousand dollars shall be with respect to contracts\nfor payments to assist in achieving and maintaining the low rent\ncharacter of projects; (b) that there shall not be outstanding at any\none time contracts for periodic subsidies requiring payments exceeding\nan aggregate of forty-four million dollars in any one year, of which\namount not more than forty-two million fifty thousand dollars shall be\nwith respect to contracts for payments to assist in achieving and\nmaintaining the low rent character of the projects. All such contracts\nshall be subject to approval by the state comptroller, and by the\nattorney general as to form.\n  The periodic subsidy for any project shall be payable on an annual\nbasis, in amounts which need not be uniform, over a fixed period of\nyears not exceeding the life of the project assisted by such subsidy and\nin any event for not more than fifty years. Portions of the periodic\nsubsidy payable for any one year may be paid from time to time as\nrequired. The period of years during which the periodic subsidy shall be\npayable shall commence on the date of substantial completion of the\nproject, as determined by the commissioner. The maximum subsidy payable\nin any one year on any one project shall not exceed a sum equal to the\nlargest annual interest charge on funds borrowed from the state to\nfinance such project plus one per centum of the project cost not\nincluding, however, funds borrowed from the state for working capital.\n  Where all or any part of the funds necessary to finance the project\nare borrowed from sources other than the state or federal government the\nperiodic subsidy may equal but shall not exceed the largest annual\ninterest charge on all borrowed funds plus one per centum of the project\ncost. The periodic subsidies shall be further limited to amounts and\nperiods necessary in the determination of the commissioner to assure the\nlow-rent character of the project involved.\n  The contract of the commissioner providing for such periodic subsidies\nshall guarantee their payment over such fixed period of years. The faith\nof the state is pledged to the payment of all periodic subsidies\ncontracted for by the commissioner. Such periodic subsidies shall be\npaid upon the audit and warrant of the state comptroller upon vouchers\napproved by the commissioner.\n  No state subsidy shall be made available for any project unless and\nuntil: (a) the municipality in which such project is situated shall\ncontract or have contracted to make subsidies to such project in an\namount at least equal to the subsidy contracted to be made by the state,\nall or any part of which municipal subsidy may be in the form of\nexemption of the project from county, city, village, town, school and\nspecial district taxes to the extent specified in subdivision four of\nsection fifty-two of this chapter; (b) the findings required by section\nseventy-one of this chapter have been made by the commissioner. Such\nfindings shall be conclusive evidence of the facts therein contained\nexcept upon proof of fraud or willful misfeasance by the commissioner.\nFor the purpose of determining the amount of subsidy to be paid by a\nmunicipality in any year pursuant to clause (a) of this paragraph, a\nproject shall be deemed to have been granted tax exemption for that year\nfor so much of the actual incurred development cost of the project at\nthe close of the period for which state subsidy is payable as represents\nan increase over the assessed valuation of the real property, both land\nand improvements, included in the project on the date of the contract\nfor a state subsidy, notwithstanding the fact that at the close of such\nperiod tax assessments or assessment-rolls reflecting the actual value\nof the project have not as yet been prepared, entered, or completed, nor\nthat the due date for the payment of the taxes has not as yet occurred,\nand provided further that whenever there has been a change in the\noverall level of assessment and the commissioner of taxation and finance\nhas certified a percentage change in the level of assessment pursuant to\nthe provisions of subdivision four of section fifty-two of this chapter,\nthe value of the tax exemption shall be computed by multiplying the tax\nrate which is to be applied to the assessed value deemed to be tax\nexempt under this paragraph by the percentage change in the level of\nassessment plus one hundred percent.\n