9 NYCRR § 2521.1 — Initial legal regulated rents for housing accommodations (Rent Stabilization Code, via Cornell LII)

(d) Notwithstanding the provisions of any
outstanding lease or other rental agreement, the initial legal regulated rent
for a housing accommodation in a multiple dwelling for which a loan is made
under the PHFL shall be the initial rent established pursuant to such law. Such
rent, whether or not the housing accommodation was previously subject to the
RSL, shall not be subject to the proceeding described in section
of this Title. Such rent for
housing accommodations occupied prior to the granting of the loan made pursuant
to the PHFL shall take effect on the date specified in the order establishing
the rent. Notwithstanding any other provision of the RSL or this Code, the
owner of such housing accommodation shall offer any tenant in occupancy on such
effective date or upon initial occupancy a one- or two-year lease at the
tenant's option at such rent, which offer shall be made as soon as practicable
after such rent is established, whether or not the rent has taken or is then
permitted to take effect; and refusal of such tenant to sign such lease, at
such rent, and otherwise upon the same terms and conditions as the expiring
lease, if any, shall constitute grounds for an action or proceeding to evict
and recover possession of the housing accommodation; provided, however, that
following the tenant's receipt of the offer of such lease at such rent as
lawfully established, a tenant in occupancy on such date shall be allowed 30
days to sign such lease and, if during such 30-day period, such tenant gives
the owner written notice of an intention to terminate such tenancy and pays the
rent established pursuant to law for such month and for any extended period,
the tenant shall not be required to surrender the housing accommodation until
60 days after receipt of such offer.2522.3