1. The obligation of the state to pay periodic subsidies to an authority or municipality for a project which has been leased or sold to a housing company, and the obligation of a municipality to make subsidies in at least an equal amount, as required by section seventy-three of the public housing law, shall cease as of the last day of the fiscal year next after the effective date of the grant, sale, lease or conveyance.2. In the event that an authority or municipality which has granted, sold, leased or conveyed a project to a housing company, for any reason or in any way resumes possession of such project, the obligations of the state and municipality to pay subsidies, as provided by the terms of section seventy-three of the public housing law, shall be deemed restored as of the first day of the fiscal year next prior to the date of such resumption of possession of such project.N.Y. Priv. Hous. Fin. Law § 558