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

(2) projects 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 date when such regulation ends, may register
higher and lower initial legal rents for units which have been subject to
occupancy and rent restrictions pursuant to such laws, 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. Where the
DHCR was the agency regulating rentals pursuant to the PHFL, such terms and
conditions shall be incorporated into an order of the DHCR.
2522.3
Such agreement or order shall also set forth the
conditions under which the higher and lower legal regulated rents may be
charged, with due consideration of equities as set forth in section

of this Title. No further
agreements shall be entered into pursuant to this subdivision on or after
January 1, 2000.2522.7

(l)

(1)
Notwithstanding any other provisions of this code, the initial legal regulated
rent shall be established pursuant to paragraph (2) of this subdivision for
housing accommodations located in properties that were or continue to be owned
by housing development fund companies (HDFC's) created pursuant to article XI
of the Private Housing Finance Law (whether such an HDFC was for rental
housing, a mutual company, or subject to cooperative or condominium ownership
or had otherwise previously been subject to this code) where such property has
been conveyed pursuant to a judgment of foreclosure or pursuant to a
stipulation of settlement in a foreclosure action (whichever occurs
first).

(2) The initial legal
regulated rent shall be the highest of: