Local Law 97 Guidance for Affordable Housing

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 May 2025.

In December 2023, DOB released the Article 321 Filing Guide, which clarifies 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. In May 2024, DOB released the Article 321 Templates covering the four PECMs that require detailed documentation, with the accompanying Template Instructions.

In October 2024, DOB released its third rule package. The rules announce the Affordable Housing Reinvestment Fund, provide updates on GHG coefficients for certain systems, provide clarity on adjustments owners can request, and details on filing fees.

Click here for FAQs about Local Law 97 and Affordable housing

Article 321 Penalties & Rules:

In September 2023, DOB released a rule package, including penalty amounts for Article 321. The rules promote compliance rather than penalties and allow owners of Article 321 buildings 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.

Unexpected or Unforeseeable Event: For buildings damaged as a result of a disaster, including but not limited to a hurricane, severe flooding or fire.
Eligible Energy Conservation Project (EECP): Certain buildings may be eligible for a mitigated penalty if the building received funding from a Housing Agency as of November 15, 2019, to complete an “Eligible Energy Conservation Project”.
- See the EECP Resource for more information about eligibility and how to apply.
- See the EECP Form here
Mediated Resolution: The Department may offer a mediated resolution if the owner submits, by May 2025, (1) an attestation that the building is not in compliance, (2) the previous year’s benchmarking AND (3) a “Compliance Plan” that either details how a building will meet 2030 carbon limits by 2030 or demonstrates that work is underway to implement the applicable Prescriptive Measures and a date by which the remaining work will be complete

Buildings with 2025 deadlines must Act Now!

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:

1. Confirm your building is subject to LL97 and identify which compliance requirement applies. Click here for the DOB’s Covered Buildings List (CBL).
2. Determine your building's current greenhouse gas emissions by looking up your building’s Local Law 84 Benchmarking via your Portfolio Manager account or Look Up Your Building on NYC Accelerator. Your building may already be in compliance!
3. If your building does not currently meet the applicable emissions limits, contact the NYC Accelerator right away! They can help building owners determine their compliance requirements, create a compliance plan and help owners leverage all available financial incentives and resources. 
4. Assemble your team. It can take a significant amount of time to assemble a team to implement your scope. NYC Accelerator can direct owners to the right providers.
5. Bid out the project and begin implementing your project.
6. File your LL97 report with the Department of Buildings (DOB) following these instructions.
7. Reap the benefits of a more efficient and more comfortable building!

For buildings who can’t make the May 1st deadline:

DOB is allowing for no penalty extensions within 60 days of deadline and additional time if approved by DOB.
Article 321 buildings can apply for an Adjustment, which demonstrates a building qualifies for delayed compliance due to financial constraints and provides an additional year. Once the Adjustment period is complete, if the financial constraint still exists owners may reapply for the Adjustment. If the building no longer qualifies, but needs more time to demonstrate compliance, they could apply for a Mediated Resolution. More information on how to pursue an Adjustment can be found here.

Free Technical Assistance for Owners

321 Go! 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