Section 26-512. Stabilization provisions

a. No owner of property subject
  to this law shall charge or collect any rent in excess  of  the  initial
  legal  regulated rent or adjusted initial legal regulated rent until the
  end of any lease or other  rental  agreement  in  effect  on  the  local
  effective date until such time as a different legal regulated rent shall
  be authorized pursuant to guidelines adopted by a rent guidelines board.
    b.  The  initial  regulated rent for housing accommodations subject to
  this law on the local effective date of the emergency tenant  protection
  act  of  nineteen  seventy-four  or  which  become  subject  to this law
  thereafter, pursuant to such act, shall be:
    (1) For housing accommodations which were regulated pursuant  to  this
  law  or  the  city  rent  and  rehabilitation  law  prior to July first,
  nineteen hundred seventy-one, and which became vacant on or  after  such
  date  and  prior  to  the  local  effective date of the emergency tenant
  protection act of nineteen seventy-four, the rent reserved in  the  last
  effective  lease  or  other rental agreement; provided that such initial
  rent  may  be  adjusted  on  application  of  the  tenant  pursuant   to
  subdivision b of section 26-513 of this chapter.
    (2)  For  housing  accommodations which were regulated pursuant to the
  city rent and rehabilitation law on the  local  effective  date  of  the
  emergency tenant protection act of nineteen seventy-four, and thereafter
  become  vacant,  the  rent  agreed to by the landlord and the tenant and
  reserved in a lease or provided for in a rental agreement; provided that
  such initial rent may be adjusted on application of the tenant  pursuant
  to subdivision b of section 26-513 of this chapter.
    (3)   For   housing  accommodations  other  than  those  described  in
  paragraphs one and two of this subdivision, the  rent  reserved  in  the
  last effective lease or other rental agreement.
    (4)  For  any plot or parcel of land which had been regulated pursuant
  to the city rent and rehabilitation law prior to  July  first,  nineteen
  hundred seventy-one and which,
    (i) became vacant on or after July first, nineteen hundred seventy-one
  and  prior  to  July  first,  nineteen  hundred  seventy-four,  the rent
  reserved in a  lease  or  other  rental  agreement  in  effect  on  June
  thirtieth,  nineteen  hundred  seventy-four plus increases authorized by
  the rent guidelines board under this law  for  leases  or  other  rental
  agreements commencing thereafter; provided that such initial rent may be
  adjusted  on  application  of  the  tenant  pursuant to subdivision b of
  section 26-513 of this chapter or,
    (ii)  became  vacant  on  or  after  July  first,   nineteen   hundred
  seventy-four,  the  rent  agreed  to  by the landlord and the tenant and
  reserved in a lease or other rental agreement plus increases  authorized
  by  the  rent guidelines board under this law for leases or other rental
  agreements commencing thereafter; provided that such initial rent may be
  adjusted on application of the  tenant  pursuant  to  subdivision  b  of
  section 26-513 of this chapter.
    (iii)  Where  the commissioner has determined that the rent charged is
  in excess of the lawful rents as stated  in  subparagraph  (i)  or  (ii)
  hereof,  plus lawful increases thereafter, he or she shall provide for a
  cash refund or a credit, to be  applied  against  future  rent,  in  the
  amount  of  any rent overcharge collected by an owner and any penalties,
  costs, attorneys' fees and interest from the date of the  overcharge  at
  the  rate  of  interest  payable  on a judgment pursuant to section five
  thousand four of the civil practice law and rules for which the owner is
  assessed.
    c.  With  respect  to  accommodations  for  which  the  initial  legal
  regulated  rent is governed by paragraph two of subdivision b hereof, no
  increase of  such  initial  legal  regulated  rent  pursuant  to  annual

  guidelines  adopted  by the rent guidelines board shall become effective
  until the expiration of the  first  lease  or  rental  agreement  taking
  effect after the local effective date of the emergency tenant protection
  act  of nineteen seventy-four, but in no event before one year after the
  commencement of such rental agreement.
    d. With respect to accommodations, other than  those  referred  to  in
  subdivision  c,  for  which  a  lease  is  entered  into after the local
  effective date of  the  emergency  tenant  protection  act  of  nineteen
  seventy-four,  but  before  the  effective  date of the first guidelines
  applicable  to  such  accommodations,  the  lease  may  provide  for  an
  adjustment  of  rent  pursuant to such guidelines to be effective on the
  first day of the month  next  succeeding  the  effective  date  of  such
  guidelines.
    e.  Notwithstanding  any contrary provisions of this law, on and after
  July first, nineteen  hundred  eighty-four,  the  legal  regulated  rent
  authorized for a housing accommodation subject to the provisions of this
  law  shall  be  the  rent  registered pursuant to section 26-517 of this
  chapter subject to any modification imposed pursuant to this law.
    f. Notwithstanding any provision of this law to the  contrary  in  the
  case  where  all  tenants  named  in  a lease have permanently vacated a
  housing accommodation and a family member of such tenant or  tenants  is
  entitled  to  and executes a renewal lease for the housing accommodation
  if such accommodation continues to be subject to  this  law  after  such
  family  member  vacates,  on  the  occurrence  of such vacancy the legal
  regulated rent shall be increased by a sum equal to the  allowance  then
  in  effect for vacancy leases, including the amount allowed by paragraph
  (five-a) of subdivision c of section 26-511 of this law.  Such  increase
  shall  be  in  addition  to any other increases provided for in this law
  including an adjustment based upon a major  capital  improvement,  or  a
  substantial  modification  or increase of dwelling space or services, or
  installation of new  equipment  or  improvements  or  new  furniture  or
  furnishings  provided  in  or  to  the housing accommodation pursuant to
  section 26-511 of this law and shall be applicable  in  like  manner  to
  each second subsequent succession.
    * NB Expires April 1, 2012