(8) Leases for housing accommodations in
cooperative or condominium-owned buildings or in a building for which the
Attorney General has accepted for filing an offering plan to convert the
building to cooperative or condominium ownership. New or renewal leases may
contain a clause permitting termination prior to the expiration of the term by
a subsequent owner who has purchased the shares allocated to the rented
apartment or purchased the rented apartment, if such clause provides:
(i) that the termination clause shall only be
effective for the purpose of permitting the rented apartment, following
surrender of possession by the tenant, to be occupied immediately by such owner
under the cooperative or condominium building ownership, or by a member of that
owner's immediate family as defined in the tenant protection
regulations;
(ii) that such owner
must serve on the tenant a notice in writing by certified mail no less than 90
days prior to the date of termination of the lease, reciting the date of
termination and the full name and address of the owner or the member of the
owner' s immediate family who is to take occupancy of the rented apartment, and
his or her relationship to the owner; an exact copy of such notice must also be
filed with an affidavit of service with the division within seven days after
such service;
(iii) that such
increase, if any, in the legal regulated rent collected under the lease
pursuant to the applicable County Rent Guidelines Board rate must be refunded
by the owner to the tenant on or before the date of surrender of possession, to
the following extent:
(a) where a one-year
lease is so terminated prior to the expiration of the one-year term, the rent
increase must be fully refunded;