N.Y. Comp. Codes R. & Regs. tit. 9, § 2100.19 – Application.

(a) Whenever the administrator shall find that, in any municipality specified by the administrator, (1) the percentage of vacancies in all or any particular class of housing accommodations is five per centum or more, or (2) the availability of adequate rental housing accommodations and other relevant factors are such as to make rent control unnecessary for the purpose of eliminating speculative, unwarranted, and abnormal increases in rents and of preventing profiteering and speculative and other disruptive practices resulting from abnormal market conditions caused by congestion, the controls imposed upon rents by authority of the act in such municipality or with respect to any particular class of housing accommodations therein shall be abolished in the manner hereinafter provided; provided, however, that except as otherwise provided in this section, no controls shall be abolished by the administrator unless the administrator shall hold a public hearing or hearings on such proposal at which interested persons are given a reasonable opportunity to be heard. Notice of such hearing shall be provided by publication in a daily newspaper published or having general circulation in the municipality affected not less than 15 days prior to the date of the hearing.
(b) Notwithstanding the provisions of this section or any other provision of the act, the local governing body of a city or town or village, upon a finding that decontrol in such city or town or village is warranted after a public hearing upon notice by publication in a daily or weekly newspaper published or having general circulation in the city or town or village not less than 20 days prior to the date of hearing, and after notice to the administrator, may adopt a resolution to decontrol all or any specified class of housing accommodation in such city or town or village. Such resolution shall thereafter be filed with the administrator. Upon receipt of any such resolution, the controls imposed by authority of the act shall be abolished in the city or town or village affected with respect to housing accommodations specified in such resolution in the manner hereinafter specified. Notwithstanding the foregoing provisions of this subdivision, a city or town or village any portion of which is within the limits of an area designated as a critical defense housing area by the Federal government at the time of adoption of the decontrol resolution, shall not become decontrolled without the approval of the administrator.
(c) Upon the issuance of an order of decontrol pursuant to subdivision (a) of this section or upon the filing of a resolution resulting in decontrol of a housing accommodation pursuant to subdivision (b) of this section, such decontrol shall take place in the manner hereinafter specified:
1. (1) If the landlord and tenant execute a written lease for a term of not less than two years wherein the landlord agrees to maintain the same services and equipment required by the act and which provides for an increase in the maximum rent not in excess of 15 percent for the first year and not more than an additional five percent increase for the second year, and otherwise continues the terms and conditions of the existing tenancy, decontrol shall take place upon the execution of such lease;
2. (2) If the landlord offers the tenant a lease in accordance with the terms provided in paragraph (1) of this subdivision and the tenant fails to execute such lease, and if the landlord notifies the tenant in writing by certified mail that his failure to execute the lease within 30 days of such notification will result in the decontrol of the housing accommodations, decontrol shall take place on the expiration of six months from the date the administrator abolished controls pursuant to subdivision (a) of this section or the date the municipality filed the resolution with the administrator pursuant to subdivision (b) of this section, whichever is applicable, or the expiration date of the 30-day period, if it is later than the applicable six-month date.
3. (3) If the landlord does not offer the tenant a lease in accordance with the terms provided in paragraph (1) of this subdivision or does not serve the notice provided in paragraph (2) of this subdivision, decontrol shall take place two years from the date the administrator issued the order pursuant to paragraph (1) or the municipality filed the resolution with the administrator pursuant to paragraph (2), whichever is applicable.