N.Y. Private Housing Finance Law § 54

§ 54. Exemption from taxation of notes and bonds. It is hereby\ndetermined that the creation of the agency is in all respects for the\nbenefit of the people of the state and for the improvement of their\nhealth, safety, welfare, comfort and security, and that said purposes\nare public purposes and that the agency will be performing an essential\ngovernmental function in the exercise of the powers conferred upon it by\nthis article. The state covenants with the purchasers and all subsequent\nholders and transferees of notes and bonds issued by the agency, in\nconsideration of the acceptance of and payment for the notes and bonds,\nthat the notes and bonds of the agency, issued pursuant to this article\nand the income therefrom and all its fees, charges, gifts, grants,\nrevenues, receipts, and other monies received or to be received, pledged\nto pay or secure the payment of such notes or bonds shall at all times\nbe free from taxation, except for estate and gift taxes and taxes on\ntransfers.\n