Section 15 - Special provisions relating to residential projects(1) Notwithstanding any provision of law to the contrary, whenever a residential project is owned by or leased to a subsidiary which is a limited profit housing company, or is sold or leased to a limited profit housing company, such project shall be deemed to be a state-aided project, as defined in section two of the private housing finance law, unless such project is aided by a municipal mortgage loan, in which event such project shall be deemed to be a municipally-aided project.(2) Notwithstanding any provision of law to the contrary, but subject to any agreement with noteholders or bondholders, any city, town or village and any housing authority is hereby authorized to purchase or lease for a term not exceeding ninety-nine years a residential project.(3) Notwithstanding any other provision of this act, projects of a subsidiary organized pursuant to articles two, four or eleven of the private housing finance law shall be exempt from real property taxes to the extent and in the manner provided by applicable law.(4) In order to increase the availability of housing accommodations for persons and families of low income, the corporation shall undertake to utilize the state capital grant low rent assistance program, pursuant to section forty-four-a of the private housing finance law, in residential projects of the corporation.(5) Notwithstanding any inconsistent provision of this act or of any general or special law, no plan for a proposed residential project in a town or incorporated village which has not been affirmed by the corporation prior to May first, nineteen hundred seventy-three, shall be affirmed if, within thirty days after the public hearing held pursuant to subdivision two of section sixteen of this act or within thirty days after June first, nineteen hundred seventy-three, whichever date is later, the local governing body of such town or village submits in writing to the corporation formal objections to the proposed residential project, unless and until such objections are withdrawn and subject to the following conditions and limitations:(a) The foregoing shall not apply to residential projects initiated after June first, nineteen hundred seventy-three, if such local governing body has, prior to submission, either approved such plan or executed any agreement with the corporation relating to such plan upon which the corporation has relied in authorizing expenditures of funds or contracts, unless such town or village reimburses the corporation for all of its expenditures and indemnifies the corporation for liabilities ensuing from cancellation of any contract, net of the proceeds of any resale of property acquired by the corporation for such project.(b) The corporation may affirm, in any event, plans for residential projects in the new community known as Audubon, in the town of Amherst, county of Erie or in the new community known as Lysander New Community, in the town of Lysander, county of Onondaga, and the provisions of this first paragraph of this subdivision shall not be applicable to any of such projects.N.Y. Urban Development Corporation Act § 15