ยง 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.