Some of you may have heard about Local Law 97, a key piece of NYC legislation enacted in 2019 to reduce greenhouse gas emissions from buildings, which account for about 70% of the city’s total emissions. The law requires buildings over 25,000 square feet to cut emissions by 40% by 2030 and 80% by 2050. The first compliance period (2024-2029) is already underway, requiring owners to upgrade insulation, heating, and cooling systems—or face fines.
While the law promotes sustainability and a greener economy, it also presents financial challenges, potentially increasing rents and costs for owners and businesses. Compliance is further complicated by hefty fines for missed deadlines. The city’s Department of Buildings (DOB) is monitoring progress through annual reports and will issue penalties to those who fall behind.
A coalition representing 300,000 co-op and condo households across NYC has raised concerns about meeting this year’s paperwork deadline, which could result in hundreds of thousands of dollars in late fees passed along to owners and shareholders. In response, the DOB has launched an online compliance portal, the Building Energy Analysis Manager, for submitting required reports and is hosting free instructional webinars on Local Law 97 reporting.
Meanwhile, representatives from co-op and condo organizations have urged the City Council to waive late filing fees this year and adjust penalties to align with other local laws, which assess fees per filer rather than by square footage. The DOB has granted a two-month grace period through June 30 and allows extensions through August 29, though obtaining one requires multiple steps, including engaging a registered design professional and filing additional documentation.
Both sides acknowledge the challenges and are working toward solutions. As with any new legislation, hurdles are expected, but hopefully, these issues will be resolved over time.