The landlord is allowed to ask for whatever price they want. After signing the lease, if the landlord has made an illegal rent increase, the tenant can ask for a hearing before the Housing Authority (Régie de Logement). In the hearing, a judge will reduce the rent retroactively to the maximum allowed increase.
If a tenant refuses to pay a rent increase, the landlord may apply for a hearing before the Housing Authority to have the tenant evicted, but the judge will take the illegality of the rent increase into consideration before giving permission to evict.