Sec. 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 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.