The administrator may order a decrease of the maximum rent otherwise allowable, or take action as provided in section 2202.19 of this Part, where a city agency having jurisdiction certifies that the housing accommodation is a fire hazard, or is in a continued dangerous condition or detrimental to life or health, or is occupied in violation of law. In such case, the maximum rent for the housing accommodation may be decreased in such amount as the administrator deems to be necessary or proper.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 2202.17