N.Y. LFN Law § 150.00

§ 150.00. Two per centum limitation on housing or urban renewal\nindebtedness. a. To effectuate any of the purposes of article eighteen\nof the state constitution as implemented by the public housing law and\nany other laws, any city, town or village may contract indebtedness to\nan amount which shall not exceed two per centum of the average assessed\nvaluation of such city, town or village.\n b. The power of a town or a village of less than five thousand\npopulation as determined by the last federal census to contract\nindebtedness pursuant to this section shall be subject to the\nlimitations on the power to contract indebtedness set forth in section\n104.00 of this chapter.\n c. A city or a village having a population of five thousand or more as\ndetermined by the last federal census shall have the power to contract\nindebtedness, for the purposes set forth in paragraph a of this section,\nin excess of the debt limitations prescribed in section 104.00 of this\nchapter. If the indebtedness is charged to the debt limit provided in\nparagraph a of this section, such city or village shall annually levy\none or more of the taxes enumerated in article six of the public housing\nlaw, to an extent sufficient to provide for the payment of the principal\nof and interest on any such indebtedness.\n d. This section shall not apply to housing or urban renewal purposes\n(i) to the extent that the legislative power to authorize the\ncontracting of indebtedness therefor is derived from sections two and\nfour of article eight of the constitution or from any other provision of\nthe constitution outside of article eighteen or (ii) to the extent that\nthere is a sufficient margin of debt contracting power to cover\nindebtedness for housing or urban renewal purposes contracted pursuant\nto article eighteen of the constitution within the debt limit\nestablished by section four of article eight of the constitution unless\nthe finance board shall elect to charge such outstanding indebtedness or\nany part thereof against the debt limit provided in this section.\n