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

(j) For housing accommodations whose rentals
were previously regulated under the PHFL, or any other State or Federal law,
other than the RSL or the City Rent Law, upon the termination of such
regulation, the initial legal regulated rent shall be the rent charged to and
paid by the tenant in occupancy on the date such regulation ends. For housing
accommodations which are vacant on the date the building first becomes subject
to the RSL and this Code, such rent shall be the most recent rent approved by
the supervising agency, which shall be subject to all increases permitted by
law and this Code, and which shall not be subject to a Fair Market Rent Appeal
pursuant to section
of this Title.2522.3

(k) Notwithstanding any other provision of
this Code, except as provided in paragraph (2) of this subdivision,
governmental agencies or public benefit corporations may enter into an
agreement with the DHCR, which shall be incorporated into an order of the DHCR,
setting forth the conditions under which:

(1)
projects receiving assistance or financing from such agencies may register
higher and lower initial legal rents for units subject to occupancy and rent
restrictions by such agencies, which rents may then be adjusted pursuant to the
RSL and this Code, and shall not be subject to the proceedings described in
section of this Title; or2522.3