(h) Illegal occupancy. A housing company having knowledge of occupancy of an apartment in conflict with the requirements of the Private Housing Finance Law, HPD rules or the requirements applicable to the apartment by reason of any federal, state or city benefit or subsidy, lease or occupancy agreement, or by reason of any other applicable law or regulation, shall notify HPD in writing of said illegal occupancy. The housing company shall, as soon as practicable, commence eviction proceedings against the last-authorized tenant / cooperator of the apartment in accordance with the administrative hearing process set forth in this section. An illegal occupant of an apartment shall not be entitled to any protections pursuant to this section. A housing company shall not knowingly accept rent from an illegal occupant, and shall seek to recover from such occupant the full market value of the apartment. The acceptance of rent/carrying charges from or on behalf of an illegal occupant shall not be deemed to create any right of tenancy or any obligation on the part of the housing company to afford such person the protection which these rules afford to authorized tenant / cooperators.