(a) Subject to the provisions of subdivision (b) of this section, a certificate shall be issued where the landlord seeks in good faith to recover possession of housing accommodations for the immediate purpose of demolishing them, provided that the landlord shall have secured such approval therefor as is required by law, and the administrator finds:

1. (1) that the demolition is to be made for the purpose of constructing a building or structure containing at least 20 percent more housing accommodations, consisting of self-contained family units (as defined in section 2200.9 of this Title), than there are apartments contained in the structure to be demolished, unless violations have been filed against the structure containing the housing accommodations, by city agencies having jurisdiction thereof, as a result of fire hazards or conditions dangerous or detrimental to life or health of the tenants, and the costs of removing such violations would substantially equal or exceed the assessed valuation of the structure. In the latter case, the new buildings or structures shall only be required to make provision for a greater number of self-contained family units than there are apartments contained in the structure to be demolished;
2. (2) that such demolition is to be made for the purpose of constructing other than housing accommodation; or
3. (3) that such demolition is to be made for the purpose of carrying out a program of clearance, replanning, reconstruction and neighborhood rehabilitation of substandard and unsanitary areas pursuant to and under the conditions imposed by article XV of the General Municipal Law, and the landlord is required to relocate tenants under the supervision of the New York City Division of Real Property or any other public agency having jurisdiction.

(c) Section 2204.4(g) and (h) of this Part, and paragraph (a)(1) of this section shall not apply with respect to any building in which there remain:

1. (1) three or fewer occupied housing accommodations which constitute 10 percent or less of the total dwelling units in the building; or
2. (2) one occupied housing accommodation if the building contains 10 or fewer dwelling units. This subdivision shall be applicable only on condition that the tenant is provided with the relocation, moving expense, stipend and any other benefits provided by the corresponding provisions of the Rent Stabilization Law of 1969. In the event of a substantial alteration or remodeling pursuant to section 2204.7 of this Part falling within the limitations of this subdivision, all of the relocation provisions available to a landlord for demolition shall apply.