N.Y. Pub. Auth. Law § 2050-f

§ 2050-f. Governmental capacity of the agency and municipalities. The\ncounty, other municipalities within the county and the agency in\ncarrying out their respective powers and duties under this title shall\nbe deemed to be acting in a governmental capacity. The construction,\noperation and maintenance of any project financed in whole or in part by\nthe agency, shall be deemed to be the performance of an essential\ngovernmental function by the agency acting in its governmental capacity,\nwhether such project shall be owned or operated by the agency or by any\nperson or other public corporation.\n