§ 150.00. Two per centum limitation on housing or urban renewal
indebtedness. a. To effectuate any of the purposes of article eighteen
of the state constitution as implemented by the public housing law and
any other laws, any city, town or village may contract indebtedness to
an amount which shall not exceed two per centum of the average assessed
valuation of such city, town or village.

b. The power of a town or a village of less than five thousand
population as determined by the last federal census to contract
indebtedness pursuant to this section shall be subject to the
limitations on the power to contract indebtedness set forth in section
104.00 of this chapter.

c. A city or a village having a population of five thousand or more as
determined by the last federal census shall have the power to contract
indebtedness, for the purposes set forth in paragraph a of this section,
in excess of the debt limitations prescribed in section 104.00 of this
chapter. If the indebtedness is charged to the debt limit provided in
paragraph a of this section, such city or village shall annually levy
one or more of the taxes enumerated in article six of the public housing
law, to an extent sufficient to provide for the payment of the principal
of and interest on any such indebtedness.

d. This section shall not apply to housing or urban renewal purposes
(i) to the extent that the legislative power to authorize the
contracting of indebtedness therefor is derived from sections two and
four of article eight of the constitution or from any other provision of
the constitution outside of article eighteen or (ii) to the extent that
there is a sufficient margin of debt contracting power to cover
indebtedness for housing or urban renewal purposes contracted pursuant
to article eighteen of the constitution within the debt limit
established by section four of article eight of the constitution unless
the finance board shall elect to charge such outstanding indebtedness or
any part thereof against the debt limit provided in this section.