Section 26-513. Application for adjustment of initial rent

a. The tenant
  or owner of a housing accommodation made subject  to  this  law  by  the
  emergency  tenant  protection  act  of nineteen seventy-four may, within
  sixty  days  of  the  local  effective  date  of  this  section  or  the
  commencement  of  the first tenancy thereafter, whichever is later, file
  with the commissioner an application for adjustment of the initial legal
  regulated rent for such  housing  accommodation.  The  commissioner  may
  adjust  such  initial  legal  regulated  rent  upon  a  finding that the
  presence of unique or peculiar circumstances  materially  affecting  the
  initial   legal   regulated  rent  has  resulted  in  a  rent  which  is
  substantially different from the rents generally prevailing in the  same
  area for substantially similar housing accommodations.
    b.  1.  The  tenant  of  a  housing  accommodation  that was regulated
  pursuant to the city rent and rehabilitation law or this  law  prior  to
  July  first,  nineteen  hundred seventy-one and that became vacant on or
  after January first, nineteen hundred seventy-four  may  file  with  the
  commissioner  within ninety days after notice has been received pursuant
  to subdivision d of this section, an application for adjustment  of  the
  initial legal regulated rent for such housing accommodation. Such tenant
  need only allege that such rent is in excess of the fair market rent and
  shall  present  such  facts which, to the best of his or her information
  and belief, support such allegation. The  rent  guidelines  board  shall
  promulgate  as soon as practicable after the local effective date of the
  emergency tenant protection act of nineteen seventy-four guidelines  for
  the  determination of fair market rents for housing accommodations as to
  which any application may be  made  pursuant  to  this  subdivision.  In
  rendering  a  determination  on  an  application  filed pursuant to this
  subdivision b the commissioner shall be guided by such guidelines and by
  the rents generally  prevailing  in  the  same  area  for  substantially
  similar  housing  accommodations.  Where the commissioner has determined
  that the rent charged is in excess of the fair market  rent  he  or  she
  shall,  in addition to any other penalties or remedies permitted by law,
  order a refund of any excess paid since January first, nineteen  hundred
  seventy-four  or  the date of the commencement of the tenancy, whichever
  is later. Such refund shall be made by the landlord  in  cash  or  as  a
  credit against future rents over a period not in excess of six months.
    2. The provisions of paragraph one of this subdivision shall not apply
  to  a  tenant  of  a  housing  accommodation for which the initial legal
  regulated rent is no greater than the maximum rent that would have  been
  in  effect  under  this  law  on December thirty-first, nineteen hundred
  seventy-three, or for the  period  commencing  January  first,  nineteen
  hundred  seventy-four and ending December thirty-first, nineteen hundred
  seventy-five as calculated pursuant to the city rent and  rehabilitation
  law  (if  no such maximum rent has been calculated for a particular unit
  for the period commencing January first, nineteen  hundred  seventy-four
  and  ending  December  thirty-first,  nineteen hundred seventy-five, the
  division of housing and community renewal shall calculate such a  rent),
  as  the case may be, if such apartment had not become vacant on or after
  January first, nineteen hundred seventy-four, plus  the  amount  of  any
  adjustment  which  would have been authorized under this law for renewal
  leases  or  other  rental  agreement,  whether  or  not   such   housing
  accommodation  was  subject  to  this  law,  for  leases or other rental
  agreements  commencing  on  or  after  July  first,   nineteen   hundred
  seventy-four.
    c. Upon receipt of any application filed pursuant to this section, the
  commissioner  shall  notify the owner or tenant, as the case may be, and
  provide a copy to him or her of such application. Such owner  or  tenant
  shall   be   afforded   a  reasonable  opportunity  to  respond  to  the

  application. A hearing may be held upon the request of either party,  or
  the  commissioner  may  hold  a  hearing  on  his or her own motion. The
  commissioner shall issue a written opinion to both the  tenant  and  the
  owner upon rendering his or her determination.
    d.  Within thirty days after the local effective date of the emergency
  tenant protection act of nineteen  seventy-four  the  owner  of  housing
  accommodations  as to which an application for adjustment of the initial
  legal regulated rent may be made  pursuant  to  subdivision  b  of  this
  section  shall give notice in writing by certified mail to the tenant of
  each such housing accommodation on a form prescribed by the commissioner
  of the initial legal regulated rent for such housing accommodation,  the
  maximum rent at the time such housing accommodation became vacant and of
  such tenant's right to file an application for adjustment of the initial
  legal regulated rent of such housing accommodation.
    e.  Notwithstanding  any contrary provision in this law an application
  for an adjustment pursuant to this section must be filed  within  ninety
  days  from  the  initial registration. This subdivision shall not extend
  any other time limitations imposed by this law.
    * NB Expires April 1, 2012