N.Y. Pub. Auth. Law § 2053-h

§ 2053-h. Governmental capacity of the authority and municipalities.\nThe county, other municipalities within the county and the authority in\ncarrying out the respective powers and duties under this title shall be\ndeemed to be acting in a governmental capacity. The construction,\noperation and maintenance of any project financed in whole or in part by\nthe authority shall be deemed to be the performance of an essential\ngovernmental function by the authority acting in its governmental\ncapacity, whether such project shall be owned or operated by the\nauthority or by any person or other public corporation.\n