9 NYCRR 2202.2

No order increasing or decreasing a maximum rent previously established pursuant to these regulations shall be effective prior to the date on which the order is issued, except as hereinafter provided. If an application for an increase pursuant to section 2202.8 of this Part is submitted on or after August 1, 1970 and is accompanied by a certified statement of expenditures with all required documentation, and no order is issued thereon within four months of the date of filing of an application based on assessed valuation (or on equalized assessed valuation on or after January 1, 1972), or eight months of the date of filing of an application based upon sales price, the increased rent requested shall be collectible by the landlord and shall be placed in an interest- bearing escrow account with a banking organization until the final determination of such application. The order of the district rent administrator shall be made effective as of the date on which the landlord is entitled to collect such requested rent increase for any housing accommodation in the building, pursuant to the permission granted by this section, and, notwithstanding any other provision of these regulations, shall be in accordance with the regulations in effect on such date. Where such order grants a rent increase which is less than the rent collected by the landlord as herein permitted, or denies the application, the excess rent collected shall be refunded to the tenants entitled thereto within 30 days from the date such order shall become final, together with interest from the date of each excessive payment of rent at the prevailing rate of interest paid by the banking organization in which such deposit is made. Any person serving as escrow agent shall not be liable except for fraud or misfeasance.