Page 10 - The NY Cooperator September 2019

10 THE COOPERATOR — SEPTEMBER 2019 COOPERATOR.COM • • • • • • 875 Third Avenue · 8th Floor · New York, NY 10022 t: (212) 808-0700 · f: (212) 808-0844 · e: info@norris-law.com Attorney Advertising www.norrismclaughlin.com CONT... necessary upgrades to meet the emissions cents per building square-foot per month. limits. In a statement, then-Real Estate Board of New York (REBNY) President assessed clean energy’ (PACE) program John Banks said that the legislation “does that will help owners finance retrofit- not take a comprehensive, city-wide ap- proach needed to solve this complex is- sue...The approach taken...will have a ship into consideration as to whether negative impact on our ability to attract one’s carbon number can be adjusted,” and retain a broad range of industries, in- cluding technology, media, finance, and pay down your savings, so there’s no ex- life sciences, that provide opportunity tra cost to the owner. If you save $10,000 and continued economic growth that is per year from upgrading your lights, you so important for our city.” Christopher Rizzo, an attorney with loan. Once the lifetime of the loan is over, Carter Ledyard & Milburn who co-wrote those savings are yours. Buildings that an article about the Climate Mobilization have already gone green should be com- Act for the New York Law Journal , de- scribes the legislation as groundbreaking. meet their 2024 and 2030 numbers thanks “Buildings can reduce their carbon emis- sions by 40 pecent by 2030,” he explains. “But there needs to be a variety of com- pliance options and financing assistance. Only the rules will clarify whether the City will address those two issues.” What Does Local Law 97 Do? Affecting approximately 50,000 build- ings in the city, Local Law 97 sets forth exempted. Among those critics is Stuart greenhouse gas emissions limits for the Saft, an attorney with New York-based years 2024 to 2029 and 2030 to 2034. Ac- cording to the nonprofit group Urban dent of the Council of New York Cooper- Green Council, “The building emissions atives & Condominiums (CNYC). “I am law sets emissions intensity limits (met- ric tons of CO2e per square-foot) for 10 as a society have to do something about building categories based on Building climate change,” he says. “We can’t ignore Code occupancy groups.” For instance, it, and we have to take care of it. But the buildings in the Occupancy Group R-2 bill that ultimately was enacted was just category (which includes apartments) unfair.” can only emit up to .00675 tons (or 6.75 kilograms) of carbon dioxide per square- foot in the year 2024. Then in 2030, the switch from No. 6 heating oil to natural emissions limit shrinks to .00407 tons gas three years ago. He says he doesn’t see (or 4.07 kilograms) of carbon dioxide his building being able to meet the city’s per square-foot. According to the stat- ute, building owners whose properties would have to open up and re-insulate all exceed the emissions limit are subjected the walls and change the heating system,” to “a civil penalty of not more than an Saft explains, “which we can’t do because amount equal to the difference between the expense would be in the tens of mil- the building emissions limit for such year lions of dollars. Because we’re a land- and the reported building emissions for marked building, we’re limited on what such year, multiplied by $268.” Local Law 97 also establishes the Of- fice of Building Energy and Emissions Performance (OBEEP) within the city’s penalties to be exacted if a building fails Department of Buildings to ensure that to meet the emissions caps, adding that the measures under Local Law 97 are he has elderly neighbors who live on fixed implemented. Meanwhile, houses of wor- ship, city-owned and NYCHA buildings, tional expenses. “We’ve tried to control low-income housing, and rent-regulated costs, but we’re gonna get hit over the accommodations are exempted under the head with an axe in 11 years,” he says. “It’s new law. According to the law, starting on May 1, 2025 and every May 1 after that, build- ing owners are required to file a report has already made efforts to go green, ac- with the department, certified by a reg- istered design professional, stating that dent Timothy Grogan. He says his build- either the building has complied with the emissions limit, or gone over it. Failure to submit a report will result in a fine of 50 The new law also creates a ‘property ting projects through low- or no-interest loans. “Local Law 97 takes financial hard- Constantinides explains. “The idea is you would use those savings to pay back your mended, as we’ve seen some who already to their forward-thinking investments.” Critics of the Legislation Following its passage by the City Council this April, the legislation has generated criticism from the real estate industry. Opponents pointed out that market-rate co-ops and condos are be- ing targeted while other properties are law firm Holland & Knight and the presi- fully in agreement with the fact that we Saft’s own prewar co-op building on the Upper East Side spent $350,000 to emissions goal by 2030. “We basically we could do that would affect the exterior appearance of the building.” Saft especially takes issue with the incomes and would be hit hard by addi- so unfair.” Like Saft’s building, 2 Tudor City Place, a 300-unit co-op in Murray Hill, cording to its managing agent and resi- LOCAL LAW 97 continued from page 1