For each month that the violation is not corrected within the 12 months following the reporting deadline, the owner of a covered building who is found in violation for failing to file a report is subject to a fine of up to the gross floor area of that covered building multiplied by $0.50.

Contact F&D Partners at (917) 754 – 3588 or send an email to info@fanddpartners.com and we can do that for you!

Residential buildings only pays 25% of the study cost and commercial buildings pay 50% of the study cost while NYSERDA covers the rest of the cost.

Local legislation 87 serves as a road map for future LL 97 compliance. Low-cost carbon solutions will undoubtedly be addressed with the proper retro-commissioning techniques applied following an energy audit.

1. NYSERDA usually wants to see energy efficiency recommendations that will reduce 25-30% of the emissions but in many cases buildings need to cut more than that, so, we would recommend projects to lower their emissions by over 65% at no extra cost . Other consultants would not do double the work at the same price and in their case they ask for $200/hr – $300/hr.
2. Most of their reports are not thorough (8-20 pages) while our reports are extremely detailed (usually 60-120 pages), including sensitivity analysis, and several strategies on how to comply. Also their reports are run by Certified Energy Managers (who do not fully understand the buildings) while ours are run by Licensed Mechanical Engineers with decades of experience.
3. We will have meetings/Zoom with all stakeholders at no extra charge, while many other engineering firms charge as much as $200-$300/hr, because we want these buildings to comply by lowering their emissions,
and become more energy efficient while avoiding up to millions of dollars in penalties.
4. We are one of the leading LL97 consultants running engineering studies in over 6 million sqft.

As per LL97 regulations, structures are allocated emissions thresholds that become progressively stricter as time passes, taking into account their energy usage trends. To remain within these emissions limits and avoid penalties, buildings are obligated to implement energy efficiency enhancements and other retrofits. Specifically, buildings housing a minimum of one rent regulated unit and up to a maximum of 35% fall under the purview of Article 320.3.10.1 (2026 Pathway), obliging them to keep their emissions below the specified limits from 2026 onwards. The initial annual compliance report for these specific buildings must be submitted by May 1, 2027.

Structures that encompass over 35% of rent regulated units along with various forms of economical housing have the option to adhere to LL97 through two avenues: firstly, by ensuring they stay below the designated emissions thresholds, or alternatively, by adhering to the guidelines outlined in Article 321 (Prescriptive Pathway).

The Prescriptive Pathway necessitates property owners to undertake specific energy preservation actions before December 31, 2024. These measures include enhancements to lighting systems, weatherproofing efforts, and the sealing of air leaks.

For HDFC rental units, the applicable pathway could be Article 321 (Prescriptive Pathway) or Sections 320.3.10.1 (2026 Pathway) or 320.3.9 (2035 Pathway), contingent upon factors such as the presence of rent-regulated units, the quantity of such units, or involvement in a federal project-based housing initiative (e.g. project-based Section 8). Please read above in order to find out more.

Local Law 97 (LL97) does not explicitly outline the treatment of buildings solely benefiting from 421-a tax exemptions. To determine the appropriate compliance pathway, owners must consider alternative aspects of the building and its units, such as the percentage or number of units under rent stabilization.

• If a building houses more than 35% of rent-stabilized units or has any number of units participating in federal project-based housing programs, like project-based Section 8, then the prescribed course of action is to follow the Prescriptive Pathway.
• In cases where the building includes at least one rent-stabilized unit and no more than 35% of units are rent-stabilized, the recommended approach is to follow the 2026 Pathway.
• When a building lacks rent-stabilized units but is subject to income restrictions due to specific government loans, grants, disposition programs, or tax benefits (in alignment with Section 320.3.9), the advisable route is the 2035 Pathway.
• Generally, rental buildings solely benefiting from “old 421-a” (421-a(1-15)) should adhere to the Prescriptive Pathway, as this older version of 421-a mandates that all rental units be under rent stabilization, encompassing both market-rate and affordable units. Meanwhile, rental buildings exclusively benefiting from “new 421-a” (421-a(16)) will likely follow the 2026 Pathway, as the new 421-a requires only the affordable and market units below the vacancy decontrol threshold to be rent stabilized. Homeownership buildings, regardless of whether they fall under old or new 421-a and possess HPD/HDC loans along with a regulatory agreement containing occupant income limitations, are advised to pursue the 2035 Pathway. For homeownership buildings solely covered by standalone 421-a, they are obligated to comply with Article 320 from 2024 (2024 Pathway).

Mitchell-Lama cooperatives and rentals typically align with the guidelines set forth in Article 320.3.9 (2035 Pathway), necessitating their compliance by the year 2035. However, if a Mitchell-Lama structure includes any units involved in a federal project-based housing program, it would be governed by Article 321 (Prescriptive Pathway) in 2024 instead of following the 2035 Pathway.

Mitchell-Lama buildings constructed before 1974 are not subject to rent regulation, and it’s not permissible for a Mitchell-Lama housing entity to be established as an HDFC. Consequently, the applicability of Article 321 (Prescriptive Pathway) to Mitchell-Lamas solely hinges on their involvement in federal project-based support. In all other instances, these developments are bound to adhere to Section 320.3.9 (2035 Pathway).

It is recommended that buildings initiate energy-saving measures as soon as possible and maintain records from the outset of their implementation. Comprehensive regulations and informational resources from the Department of Buildings (DOB) will soon be made available. Keep a lookout for updates on the DOB website under the “Resources” section in the upcoming year.

Importantly, for structures adopting energy conservation measures as outlined in Article 321, the compliance report submission necessitates the involvement of a Retro-commissioning Agent. In the case of buildings reporting adherence to emissions limits based on Article 321, their annual reports must be endorsed by a registered design professional. F&D Partners can help you with this.

A building becomes eligible for Article 321 (Prescriptive Pathway) with any quantity of units receiving federal project-based assistance. It’s important to clarify that tenant-based Section 8 vouchers are not considered federal project-based assistance for this purpose.

Electrification would not be classified as one of the predefined energy conservation measures, but endeavors related to electrification could potentially assist a building in aligning with the emissions limits specified in Article 321.2.1 and Article 320.