New York City’s one million buildings account for nearly two-thirds of the city’s carbon emissions. The Climate Mobilization Act of 2019 included Local Law 97 (LL97), which sets increasingly stringent caps on greenhouse gas emissions from most buildings over 25,000 SF starting in 2024. While buildings that contain affordable and rent-regulated housing are treated somewhat differently, the first compliance report for many of these buildings is due in 2025.
In December 2022, DOB released a package of proposed rules to provide clarity for owners. In December 2023, DOB released a second package of rules, which promote compliance rather than penalties.The DOB also released the helpful Article 321 Filing Guide, which provides clarification on Article 321 reporting, best practices for implementing the PECMs, and information about penalty amounts. In addition, it outlines penalty mitigation options – including a mediated resolution option that gives buildings additional time to comply with either provision of Article 321.
Click here for FAQs about Local Law 97 and Affordable housing
In September 2023, DOB released a new package of proposed rules for LL97, including penalty amounts for Article 321. The rules promote compliance rather than penalties and may
allow owners of buildings subject to Article 321 additional time to comply with either Article 321 compliance requirement - as long as they can demonstrate progress.
Note that penalties may be imposed annually, at the Department’s discretion, until Article 321 compliance is demonstrated.
Stay tuned, the DOB will issue further guidance regarding mitigated penalties
2024 is approaching quickly. Building owners subject to the 2024 deadlines need to act now to start on a path to compliance. Buildings who fail to submit a report by May 01, 2025 to the DOB will face penalties. Here is where to start:
321 Go! (c15.io) is a free program offered by HPD and NYSERDA to help HPD asset-managed properties determine the best path toward LL97 compliance, reduce energy costs, and capture incentives. See 321Go! in action here!
NYC Accelerator is a city-backed program that can provide free technical assistance to building owners of affordable housing to understand LL97, develop an appropriate work scope, identify incentives and financing tools, and assemble a team to implement the work.
To connect with a dedicated affordable housing account manager contact (212) 656-9202 and/or info@accelerator.nyc
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