Sec. 9.   APPLICATION FOR ADJUSTMENT OF INITIAL LEGAL REGULATED
          RENT.

a.   The owner or tenant of a housing accommodation described in
     paragraph one or two of subdivision b of section six may,
     within sixty days of the local effective date of this act or
     the commencement of the first tenancy thereafter, whichever
     is later, file with the state division of housing and
     community renewal an application for adjustment of the
     initial legal regulated rent for such housing accommodation.
     The state division of housing and community renewal 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.   The tenant of a housing accommodation described in paragraph
     two, subdivision b, of section six may file with the state
     division of housing and community renewal, within ninety
     days after notice has been received pursuant to subdivision
     c 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 information and belief, support such
     allegation. The rent guidelines board shall promulgate as
     soon as practicable after its creation guidelines for the
     determination of fair market rents for housing
     accommodations as to which an application may be made
     pursuant to this subdivision. In rendering a determination
     on an application filed pursuant to this subdivision b, the
     state division of housing and community renewal shall be
     guided by such guidelines. Where the state division of
     housing and community renewal has determined that the rent
     charged is in excess of the fair market rent it shall 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.

c.   Upon receipt of any application filed pursuant to this
     section nine, the state division of housing and community
     renewal shall notify the owner or tenant, as the case may
     be, and provide a copy to him 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 division may hold a
     hearing on its own motion. The division shall issue a
     written opinion to both the tenant and the owner upon
     rendering its determination.

d.   Within thirty days after the local effective date of this
     act the owner of housing accommodations described in
     paragraph two of subdivision b of section six, as to which
     an emergency has been declared pursuant to this act, shall
     give notice in writing by certified mail to the tenant of
     each such housing accommodation on a form prescribed by the
     state division of housing and community renewal of the
     initial legal regulated rent for such housing accommodation
     and of such tenant's right to file an application for
     adjustment of the initial legal regulated rent of such
     housing accommodation.

e.   The initial legal regulated rents for housing accommodations
     in a city having a population of one million or more shall
     be subject to adjustment in accordance with the provisions
     of the New York city rent stabilization law as amended.