🗞️Local Law 97 – Due Diligence for Co-op and Condo Purchasers

New York City’s Local Law 97 (LL97), part of the Climate Mobilization Act passed in April 2019, aims to reduce greenhouse gas emissions by 40% by 2030 and 80% by 2050. Starting from January 1, 2024, LL97 assigns specific carbon emission allowances to “covered buildings” in the city, with these allowances being progressively reduced every five years. Violations of these caps will result in annual fines starting from 2025.

When purchasing a co-op or condo apartment, buyers should:

1. Determine if the building is covered under LL97.
2. Investigate if the building has consulted with construction and engineering professionals and obtained a professional energy audit to ensure compliance with LL97.
3. Ascertain the necessary remedies and estimate the costs associated with LL97 compliance.
   Compliance with LL97 may involve steps like using solar panels or LED lights, or switching building mechanical systems to more carbon-efficient energy sources. Buildings may need to conduct comprehensive reserve studies for LL97 compliance and institute robust capital plans. Special loan programs like NYC’s Commercial Property Assessed Clean Energy (C-PACE) lending program may assist with funding shortfalls.

A member of the New York City Council is currently advocating for a bipartisan bill (Int. 913) that would delay the implementation of LL97 by seven years. However, it’s uncertain whether LL97 will be amended or modified.

Sydney Harewood is a real estate professional with a passion for NYC’s architectural gems. For inquiries, call or message Syd at 📞646-535-3819. Experience the finest in NYC real estate with Syd’s expert guidance and deep knowledge of the city’s most exquisite properties.

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Sydney Harewood.Lrsp, LEVEL. 5 West 37th Street | New York, NY 10018 | Tel: 646-535-3819