§ 286. Tenant protection. 1. It shall not be a ground for an action or\nproceeding to recover possession of a unit occupied by a residential\noccupant qualified for the protection of this article that the occupancy\nof the unit is illegal or in violation of provisions of the tenant's\nlease or rental agreement because a residential certificate of occupancy\nhas not been issued for the building, or because residential occupancy\nis not permitted by the lease or rental agreement.\n 2. (i) Prior to compliance with safety and fire protection standards\nof article seven-B of this chapter, residential occupants qualified for\nprotection pursuant to this article shall be entitled to continued\noccupancy, provided that the unit is their primary residence, and shall\npay the same rent, including escalations, specified in their lease or\nrental agreement to the extent to which such lease or rental agreement\nremains in effect or, in the absence of a lease or rental agreement, the\nsame rent most recently paid and accepted by the owner; if there is no\nlease or other rental agreement in effect, rent adjustments prior to\narticle seven-B compliance shall be in conformity with guidelines to be\nset by the loft board for such residential occupants within six months\nfrom the effective date of this article.\n (ii) In addition to any rent adjustment pursuant to paragraph (i) of\nthis subdivision, on or after June twenty-first, nineteen hundred\nninety-two, the rent for residential units in interim multiple dwellings\nthat are not yet in compliance with the requirements of subdivision one\nof section two hundred eighty-four of this article shall be adjusted as\nfollows:\n (A) Upon the owners' filing of an alteration application, as required\nby paragraphs (ii), (iii), (iv), (v), (vi), and (vii) of subdivision one\nof section two hundred eighty-four of this article, an adjustment equal\nto three percent of the rent in effect at the time the owner files the\nalteration application.\n (B) Upon obtaining an alteration permit, as required by paragraphs\n(ii), (iii), (iv), (v), (vi), and (vii) of subdivision one of section\ntwo hundred eighty-four of this article, an adjustment equal to three\npercent of the rent in effect at the time the owner obtains the\nalteration permit.\n (C) Upon achieving compliance with the standards of safety and fire\nprotection set forth in article seven-B of this chapter for the\nresidential portions of the building, an adjustment equal to four\npercent of the rent in effect at the time the owner achieves such\ncompliance.\n (D) Owners who filed an alteration application prior to the effective\ndate of this subparagraph shall be entitled to a prospective adjustment\nequal to six percent of the rent on the effective date of this\nsubparagraph.\n (E) Owners who obtained an alteration permit prior to June\ntwenty-first, nineteen hundred ninety-two shall be entitled to a\nprospective adjustment equal to fourteen percent of the rent on June\ntwenty-first, nineteen hundred ninety-two.\n (F) Owners who achieved compliance with the standards of safety and\nfire protection set forth in article seven-B of this chapter for the\nresidential portions of the building prior to June twenty-first,\nnineteen hundred ninety-two shall be entitled to a prospective\nadjustment equal to twenty percent of the rent on June twenty-first,\nnineteen hundred ninety-two.\n (iii) Any rent adjustments pursuant to paragraph (ii) of this\nsubdivision shall not apply to units which were rented at market value\nafter June twenty-first, nineteen hundred eighty-two and prior to June\ntwenty-first, nineteen hundred ninety-two. This paragraph shall not\napply to units made subject to this article by subdivision five of\nsection two hundred eighty-one of this article.\n (iv) Payment of any rent adjustments pursuant to paragraph (ii) of\nthis subdivision shall commence the month immediately following the\nmonth in which the act entitling the owner to
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