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

(i) Notwithstanding the
provisions of the RSL or any other provision of this Code, the initial legal
regulated rent upon completion of the rehabilitation of a Class B multiple
dwelling, Class A multiple dwelling used for single-room occupancy purposes,
lodging house or a substantially vacant building intended to be used after
rehabilitation for single-room occupancy purposes for which a loan is made for
such rehabilitation on or after September 1, 1985, under article VIII or VIII-A
of the PHFL, shall be the initial rent established by HPD 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
shall take effect on the date specified in the order establishing the rent.
Notwithstanding the provisions of the RSL or any other provision of this Code,
the owner of such housing accommodation shall offer any tenant in occupancy on
such effective date 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. 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 pay the rent
established pursuant to law for such month and for any extended period,