Section 556. Tax exemptions

Notwithstanding  the  provisions of section
  fifty-two, subdivisions three and four of the public housing law, or  of
  sections thirty-three or ninety-three of this chapter, the real property
  in  a  project  sold  or  leased  as  provided in this article, when the
  transfer thereunder becomes effective, shall be exempt  from  local  and
  municipal  taxes, other than assessments for local improvements, only to
  such extent as may be granted by  the  local  legislative  body  of  any
  municipality  in  which such project is located; provided, however, that
  any company to which such project is so sold or leased shall  pay,  with
  respect  to  each such project, local and municipal taxes in amounts not
  less than the sum or sums which the authority would be obligated to  pay
  to  the  municipality  had  it  not  sold  or leased the project to such
  company. The tax exemption shall operate and continue  (1)  so  long  as
  capital  loans of the company to which such project shall have been sold
  or leased are outstanding, or in case of lease, so long  as  obligations
  of  the  municipality  or authority to the government granting financial
  assistance to the municipality or authority with respect to the  project
  so  leased  shall continue and (2) until and unless the project shall be
  repossessed by the authority or municipality. Any project that  received
  a  tax  exemption under this section may, upon the expiration of the tax
  exemption period, be granted an additional tax exemption period of up to
  fifty years, or until such time as the project  is  no  longer  operated
  under  the  restrictions and for the purposes set forth in this article,
  whichever is sooner.