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.    Suchfindings  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  state  board  of real property  services 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.