Local Law 97 for Co-ops and Condos: What Boards Need to Know
Short answer: Co-ops and condos over 25,000 gross square feet are covered by Local Law 97, and some groups of buildings over 50,000 are too. The penalty is $268 per ton over the building's limit, so only a building over its limit owes one. Some co-ops may follow the Article 321 pathway instead.
Figures for 2030 and later are projections at today's energy use, not a bill or a forecast of what the city will charge.
Are co-ops and condos covered?
Yes. Local Law 97 applies to most buildings over 25,000 gross square feet, whether they are rentals, co-ops or condos. Groups of buildings on the same tax lot, and condo buildings under one board, are covered when they add up to more than 50,000 gross square feet. Smaller buildings are not covered.
Who pays the penalty?
The penalty is assessed on the building. For a co-op the owner is the cooperative corporation. For a condo it is handled through the board. The cost is then typically shared among shareholders or unit owners through maintenance or common charges, in the way the building's governing documents describe.
That makes the number worth knowing early. A penalty of $100,000 a year is about $8,333 a month for the building as a whole, before it is split among owners.
What a board can do first
- Find the building's number. Search the address or use the calculator. The 2030 figure matters most, because the limits fall about 40% to 74% then. See how much your building could owe in 2030.
- Check the filed data. The estimate comes from the building's Local Law 84 filing. A wrong floor area or a missing fuel changes the result.
- Look at the cheapest fixes. Operations and controls come before big projects. See the cheapest fixes first.
- Get quotes and plan the capital work. Boards need time to plan assessments or financing, so an early number helps.
Which co-ops may follow Article 321?
NYC Accelerator lists three groups eligible for the Article 321 pathway: buildings where more than 35% of units are rent regulated, Housing Development Fund Cooperatives (HDFCs) or co-ops, and buildings with at least one unit in a federal project-based assistance program. Its page does not mention condos. DOB's covered buildings list is the place to confirm a building's pathway. Read the Article 321 guide for what the pathway requires.
Frequently asked questions
Are co-ops and condos covered by Local Law 97?
Yes, when the building is over 25,000 gross square feet. Condo or co-op buildings on one tax lot, or under one board, that together exceed 50,000 gross square feet are also covered.
Does every co-op or condo owe a penalty?
No. A penalty applies only to emissions over the building's limit, so a building under its limit owes nothing. Missing the annual report is penalized separately.
Who files the Local Law 97 report for a co-op or condo?
The building's owner is responsible for the report. For most buildings it is reviewed by a registered design professional, who signs an attestation that goes to the Department of Buildings with it.
Can a co-op follow a different pathway?
Some can. NYC Accelerator lists Housing Development Fund Cooperatives (HDFCs) or co-ops as one group eligible for the Article 321 pathway of required measures. DOB's covered buildings list shows the pathway for each building.
Sources
More Local Law 97 guides
- What is the NYC Local Law 97 penalty?
- How much will my building owe in 2030?
- Local Law 97 penalties by building type
- How to reduce Local Law 97 emissions
- Local Law 97 deadlines and reporting dates
- The biggest Local Law 97 penalties in NYC
- Local Law 97 for hotels
- Can renewable energy credits cut your Local Law 97 penalty?
- Local Law 97 Article 321: the pathway for affordable and rent-regulated buildings
- How to file your Local Law 97 report
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