(a) Upon application of the landlord, the administrator shall issue an order decontrolling all of the housing accommodations resulting from substantial demolition of a building, provided that:

1. (1) not less than 50 percent of the housing after reconstruction shall consist of apartments suitable for occupancy by larger families, or not less than 50 percent of the total floor area of all of the housing after reconstruction shall be utilized for apartments suitable for occupancy by larger families;
2. (2) all other housing accommodations in the building shall comply with at least the minimum requirement for a self-contained family unit, as defined in section 2200.9 of this Part; and
3. (3) all of the housing accommodations meet all of the requirements of law and of the city agencies having jurisdiction thereof, and over the occupancy of such accommodations.

(c) The term housing accommodations resulting from substantial demolition, as used in this section, shall mean any housing accommodation which is created on or after May 1, 1962 as a result of the substantial demolition of a multiple dwelling and the reconstruction of such building in such manner as to retain any portion thereof existing prior to such demolition, and:

1. (1) which is so created after the issuance of one or more certificates permitting the eviction of any tenant or tenants of such multiple dwelling for the purpose of effecting such demolition where application for such certificates was filed after April 24, 1962; or
2. (2) where no such certificates were issued, which was created after the former structure, or any lesser portion thereof, was vacated on or after November 22, 1963 by voluntary surrender of possession or in any manner provided in Part 2204 of this Title.

(e) Notwithstanding any of the foregoing provisions of this section, no order shall be issued by the administrator decontrolling housing accommodations resulting from substantial demolition:

1. (1) in any building aided by a loan made by the city under article 8 of the Private Housing Finance Law, so long as maximum rents are required to be prescribed by the provisions of said article 8;
2. (2) in any multiple dwelling with respect to which tax abatement and tax exemption under section J51-2.5 of the Administrative Code begins after April 30, 1962, until the date on which such tax abatement or tax exemption terminates, whichever is later; or
3. (3) in any building where the former structure, or any lesser portion thereof, was vacated on or after November 22, 1963, other than by voluntary surrender of possession or in the manner provided by Part 2204 of this Title.