N.Y. State Fin. Law § 97
All the moneys repaid to the state, both principal and interest on account of advancements made and to be made to cities, towns, villages or public corporations specified in section two of article eighteen of the state constitution from proceeds of state bonds sold or to be sold to provide moneys for low rent housing or urban renewal shall, when received, be paid into and shall constitute a special fund in the state treasury to be known as "housing debt fund," or "urban renewal debt fund," as the case may be. Such fund shall be available only for payment of appropriations to pay installments of principal of and interest on such bonds. Appropriations in any year to pay installments of principal of and interest on any such state bonds shall first be paid from such special fund, so far as the amount of moneys therein will pay the same, and the remainder, if any, shall be paid from any other moneys in the state treasury not otherwise appropriated.
N.Y. State Fin. Law § 97