N.Y. Pub. Auth. Law § 2049-g

§ 2049-g. Governmental capacity of the authority and municipalities.\nThe authority, the town and other municipalities, in carrying out their\nrespective powers and duties under this title, shall be deemed to be\nacting in a governmental capacity. The construction, operation and\nmaintenance of any project financed in whole or in part by the authority\nshall be deemed to be the performance of an essential governmental\nfunction by the authority acting in its governmental capacity, whether\nsuch project shall be owned or operated by the authority or by any\nperson or public corporation.\n