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

(e) Notwithstanding any other provision of
this Code, the initial legal regulated rent for a housing accommodation first
made subject to the RSL and this Code pursuant to article XIV of the PHFL or
section 2429 of article 8 of the Public Authorities Law shall be the rent
established pursuant to law which reflects the improvements or rehabilitation
and shall be subject to subsequent adjustment by the DHCR. Such rent shall not
be subject to the proceedings described in section
of this Title.
Notwithstanding any other provision of the RSL or this Code: the owner of such
housing accommodation shall offer a tenant in occupancy who first became
subject to the RSL and this Code on the effective date of such rent 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 effective; 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 tenant's receipt of the offer
of such lease at such rent, a tenant in occupancy on such effective 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 pay the rent established pursuant to law while in occupancy, the tenant
shall not be required to surrender the housing accommodation until 60 days
after receipt of such offer. Notwithstanding that the rent charged and paid
during the first lease term may have been less than such initial legal
regulated rent, the owner may request that the next lease rental after vacancy
be the