Local Law 97: The Countdown Begins
- eva_hatzaki
- 5 days ago
- 4 min read
On May 1, 2025, building owners must submit their first annual emissions report to the DOB—a key milestone that launches the law’s first five-year compliance period.
New York City’s iconic skyline may rise from concrete, steel, and glass—but in the fight against climate change, it’s carbon that counts.
Local Law 97 At-A-Glance
📌 What is LL97?
A NYC law that limits GHG emissions from large buildings to help the city reach net-zero by 2050.
🗓 First Compliance Deadline
May 1, 2025 (Report due to DOB)
Grace period ends: June 30, 2025
🏢 Who Must Comply?
Buildings > 25,000 sq ft
Multiple buildings on the same tax lot > 50,000 sq ft
Condo buildings under one board > 50,000 sq ft
⚠ Penalties
$0.50/sq ft/month for not filing
$268/tCO₂e/year over emissions limit
💡 Must-Have Steps
Hire a registered design professional
Conduct an energy audit
File annual report
Plan for upgrades (electrification, HVAC, insulation)
💸 Get Support
PACE Loans
NYSERDA Incentives
Article 321 Adjustments
Timeline Extensions for Good Faith Effort
Under Local Law 97 (LL97), part of the 2019 Climate Mobilization Act, the city has enacted one of the most ambitious municipal efforts in the nation to curb greenhouse gas (GHG) emissions. With buildings responsible for nearly 70% of NYC’s total emissions, the law aims to reduce them by 40% by 2030 and achieve net zero by 2050.
While LL97 has been on the books since 2019, 2025 is the year it goes into full effect. On May 1, 2025, building owners must submit their first annual emissions report to the NYC Department of Buildings (DOB)—a key milestone that launches the law’s first five-year compliance period. Miss the deadline, and financial penalties start stacking up: $0.50 per square foot, per month.
Although the DOB offers a filing grace period until June 30, 2025, this only delays late-filing fines—not penalties for exceeding emissions limits, which are far steeper at $268 per metric ton of CO₂ equivalent (tCO₂e) above the cap.
Who Must Comply?
LL97 applies to:
Buildings over 25,000 gross square feet
Multiple buildings on a tax lot that exceed 50,000 square feet
Condo buildings managed by a single board totaling over 50,000 square feet
Certain properties—such as those with 35% or more affordable housing—may fall under a different set of rules (Article 321), but all must file emissions reports annually, certified by a registered design professional.
Filing Isn’t Optional—It’s Essential
“Defying the law by not filing is the fastest way to rack up unnecessary penalties,” warns legal expert William McCracken. Even if your emissions are within limits, failure to submit a certified report triggers automatic fines.
So what’s the best path forward? For most, it begins with a professional energy audit. Engineers examine heating, cooling, lighting, and other building systems to pinpoint inefficiencies and plan for strategic upgrades.
“This isn’t a one-size-fits-all regulation,” says Punit Shah of Bright Power. “Every building requires its own roadmap, and audits provide the data needed to make smart decisions.”
Audits are also mandatory for buildings seeking timeline extensions, incentives, or compliance adjustments. Electrification—a likely requirement for half of all properties by 2030—requires significant lead time, so the earlier planning begins, the better.
The Cost of Delay
Some buildings may consider simply paying the fines instead of investing in costly retrofits. But this approach is shortsighted. Fines are recurring, and non-compliant buildings lose access to incentive programs like PACE loans or NYSERDA grants.
“Buildings that show a good faith effort—by conducting audits, applying for funding, hiring consultants—can receive flexibility on deadlines and fines,” McCracken explains. “Ignoring the law leaves legal and financial tools on the table.”
Funding the Future
For co-op and condo boards, compliance isn’t just a technical issue—it’s a financial one. Faith Rodriguez-Price of Maxwell-Kates recommends starting now: raise maintenance fees, assess capital reserves, or explore financing options. “There are creative solutions—mortgage refinancing, construction loans, and government rebates all play a role,” she says.
A Glimpse of What’s Possible
In downtown Brooklyn, Alloy Development’s 505 State Street is already showing what LL97 compliance looks like in action. The 44-story residential tower is the city’s first all-electric high-rise, using off-site solar, electric boilers, and high-performance insulation to operate at net zero emissions. Built to Passive House standards, the project includes schools, retail, and affordable housing—all future-proofed against rising carbon costs.
“All-electric wasn’t just about compliance,” says Alloy president AJ Pires. “It was about building for the future. Installing gas would be like laying copper phone lines when fiber optics exist.”
The Message Is Clear
Whether you manage a prewar co-op, a large commercial office, or a condo high-rise, 2025 is your wake-up call. Start with an audit, evaluate your building’s energy use, explore funding options—and file your emissions report on time.
The city isn’t just enforcing a law—it’s setting the stage for the future of sustainable living in NYC.
Learn more and get started:
cooperatornews.com: Local Law 97
Local Law 97 Compliance: Funding Toolkit
Need help paying for upgrades? These programs can ease the burden:
PACE Loans
Property Assessed Clean Energy financing helps cover upfront costs for energy improvements—paid back through property taxes.
NYSERDA Grants
Offers rebates and technical assistance for energy efficiency and electrification projects.
Mortgage Refinancing
Many co-ops refinance to access capital for compliance-related retrofits.
Construction Loans
Condo boards may explore special-purpose financing for major systems upgrades.
Capital Reserve Planning
Raising maintenance fees or using assessments can build reserves ahead of large retrofits.
Pro Tip: Start planning now—even small actions show “good faith effort” and protect access to incentives and extensions. 🀰
»Local Law 97: The Countdown Begins«
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