Local Law 87 Compliance – December Deadline for Buildings with Tax Block Ending in “9”

 

With the deadline just 2 months away, it’s now or never for building owners to comply with the New York City Local Law 87/2009! Many building owners are aware, but those who are unaware are almost out of time and may receive large DOB fines for non-compliance.

 

Local Law 87

Local Law 87 (LL87), enacted in 2009, requires all commercial and residential buildings over 50,000 square feet in New York City to conduct an energy audit and retro-commissioning every 10 years. These two components of the law make up the building’s Energy Efficiency Report (EER). The deadline for the report to be submitted to the NYC Department of Buildings is December 31st. To understand which buildings are due to comply, check the building’s reporting year, which is determined by the last digit of the Tax Block number.

To understand the requirements of the law better, take a deeper look into it’s two main components: Energy Audit (EA) and Retro-Commissioning (RCx):

Energy Audit: 

An energy audit is a systematic and regular analysis of a building’s energy equipment and systems, as well as an analysis of energy consumption during the past two years. The energy equipment and systems include heating equipment, boilers, chillers, electrical and lighting systems, ventilation and HVAC systems and building envelope.

An energy audit is done with the purpose of determining the most energy-efficient solutions and cost-effective improvements that will eventually reduce the annual energy costs. The energy audit report comes with a list of recommended strategies on how to save energy, how much it will cost, and what will the eventual payback be.

To carry out a high-quality and proper energy audit you will need a qualified energy auditor. This person will be responsible for creating a full technical proposal based on the monitoring of your building’s systems and equipment. As a result of the work from a qualified specialist, your building’s technical and operational needs will be detected and improved in the best way possible.

Retro-Commissioning:

Retro-commissioning will ensure the proper installation and smooth performance of all your equipment. The process includes diagnostic monitoring, functional upgrading, and repairing defects in existing base building systems. This is expected to lead to the improvement of performance and the optimization of existing controls, sensors, valves and such systems, which cannot be fully replaced.

Compared to an energy audit, the goal of which is to determine the complex problems for reaching a building’s optimal functionality, retro-commissioning aims at upgrading all existing systems and controls to reach the highest energy efficiency.

Energy Efficiency Report:

It is also important for every building owner to understand the details of an Energy Efficiency Report. An EER is made up of Professional Certification Forms and Data Collection Tools, which need to be filled in electronically. The Professional Certification Forms represent the details about your building’s filing status, the structure of the auditing and retro-commissioning teams, a professional seal and qualifications, as well as a statement of compliance from you as a building owner. Information regarding your building being exempt from conducting an energy audit or retro-commissioning should also be included.

Data Collections Tools are comprised of many sections that include the introduction, submitting, team and building information, and details regarding the building’s equipment.

 

Who should comply with Local Law 87:

  • All commercial and residential buildings over 50,000 square feet.
  • Two or more buildings that exceed 100,000 square feet together (this implies buildings on the same tax lot) and are owned by the city or at least, the city pays the annual energy bills for them – either completely or partially.
  • Two or more buildings held in the condominium form of ownership having the same board of managers and exceeding 100,000 square feet together (again, owned by the city or having their energy bills paid by the city; partially or fully).

Buildings exempt from complying with Local Law 87:

  • Tenant interim lease apartment purchase program
  • Buildings apart of the HPD program
  • Buildings that are governed by NYC Health and Hospital Corporation
  • Cultural institutions that are included in the Cultural Institutions Group as per the Department of Cultural Affairs
  • Class 1 residential property which includes 1,2 and 3 family homes, condos and co-ops with no more than 3 dwelling units

Deadline:

As a building owner, an EER is due according to the last digit of your building’s block number:

       Last Digit in Block Number                                           Compliance Deadline

8                                                                                    2018

9                                                                                    2019

10                                                                                   2020

11                                                                                   2021

12                                                                                   2022

To find out if your building is compliance click here to use our Do You Need to Comply Generator.

Penalties of Non-compliance?

If you fail to comply with Local Law 87 before the December 31st of your deadline year, the following penalties will apply to you:

 

Local Law 87 Violations Deadline

 

  1. If your building doesn’t comply with LL87 in the first year, you will be fined $3,000. Non-compliance will result in $5,000 (for every additional year) until you submit your EER to the Department of Buildings.
  2. Failing to comply with the law will not only result in financial penalties but a Class 2 violation. A Class 2 violation can stop construction permits from being issued. Your building refinancing will also receive a negative impact.

 

Other important points regarding Local Law 87 that will surely interest building owners are the following:

  • Energy Star Certified? Good news, you don’t need to conduct an energy audit for 2-3 years preceding the filing of an EER. However, you will still need to submit a retro-commissioning report.

 

  • An energy audit will also not be required for those buildings which possess a certification under the LEED (Leadership in Energy and Environmental Design) 2009 rating system for Existing Buildings published by the USGBC (US Green Buildings Council), or any other rating system for existing buildings.

 

  • You won’t have to submit an EER report within 4 years prior to the filing of your building’s EER.

 

  • No retro-commissioning needed if your building has received the LEED point for Existing Building Commissioning investigation, analysis and implementation.

 

  • If your building is less than 10 years old, you still have to carry out an energy audit and retro-commissioning.

To be exempt from submitting an EER is when all the base building systems comply with the NYC energy conservation code. This is in effect for new buildings constructed on or after July 1, 2010.

 

LL87 Filing Fees:

The LL87 filing fees are as follows:

  1. An initial filing will cost $375
  2. An extension request – $155
  3. Amendments – $145

Boost your building’s energy efficiency, mitigate GHG emissions, and cut operating costs by complying with Local Law 87 of 2009!

NYC Local Law 55

& Tenant Safety

 

New York City tenants can breathe easy because of Local Law 55 that was put into effect in January of 2018.  This Local Law requires all multiple-dwelling property owners in NYC to investigate and remove all indoor health hazards which trigger asthma like, mold, rodents and cockroaches.  Landlords must also apply safe and successful measures to ensure that their properties remain free of indoor health hazards.

The NYC Housing Preservation & Development (HPD) is responsible for carrying out Housing in New York.  This is Mayor Bill de Blasio’s initiative to build and preserve 300,000 affordable homes by 2026.  The agency’s mission is to promote the quality and affordability of the city’s housing and the strength and diversity of its many neighborhoods.  HPD strives to achieve this mission by:

  • Preserving affordable housing and protecting tenants
  • Developing new affordable housing
  • Enforcing the Housing Maintenance Code
  • Engaging neighborhoods in planning

In NYC tenants have many rights relating to the safety and quality of their housing.  HPD works to protect these rights by preventing harassment, displacement, and ensuring low-income tenants facing legal proceedings in housing Court have universal access to legal representation.

 

Maintenance Requirements by Landlords

  • Gas
  • Heart and Hot Water
  • Indoor Allergen Hazards (Mold and Pests)
  • Bedbugs (Local Law 69 of 2017)
  • Lead-Based Paint (Local Law 1 of 2004)
  • Smoke and Carbon Monoxide Detectors
  • Window Guards (Local Law 57 of 2011)
  • Basement and Cellar
  • Signage, Filling, and Notices
  • Outlet Covers in Public Areas
  • Fire Safety (Local Law 10 of 1999)
  • Stove Knob Covers

 

Violations For Noncompliance

Properties are subject to the penalties described below unless violations are corrected and the correction is certified to the Department by the dates indicated on the front of the Notice of Violation(s) mailed to the property owner or, in the case of heat and hot water violations, from the date the violation is posted at the building.

Class A Violations (Non-Hazardous)

  • Failure to post a notice regarding the housing information guide: $250 each
  • All other Class A violations: $10-$50 each

Class B Violations (Hazardous)

  • $25-$100 each, plus $10 per violation per day

Class C Violations (Immediately Hazardous)

  • Not related to heat, hot water, or illegal devices or lead-based paint:
    • Buildings with 5 or fewer units: $50 per violation per day
    • Buildings with more than 5 units: $50-$100 per violation plus $125 per violation per day
  • Heat and hot water violations:
    • $250-$500 per day for each violation from and including the date the notice is posted at the building until the date the violation is corrected
    • $500-$1000 per day for each subsequent violation at the same building that occurs within two consecutive calendar years or, in the case of (hot water) during two consecutive periods of October 1st through May 31st (heat)
  • Illegal Device on a central heating system:
    • $25 per day (from the date the violation was posted on the building until the illegal device is removed) or $1,000, whichever is more
  • Lead-Based paint violations:
    • $250 per day violation, up to a maximum of $10,000
  • False Certification: (can result in criminal charges)
    • $50-$250 for non-lead violations
    • A minimum of $1000 with a maximum of $3000 for lead violations.

 

Need to Correct a Mold Violation?

If your inspection reveals the existence of mold in your building, you’ll need to take immediate steps to correct it so that you’re not issued a violation.  HPD has very specific criteria for whom can perform a remediation for mold.  According to Local Law 55, a mold hazard must be assessed and remediated by both the NYS licensed Mold Assessor and a NYS licensed Mold Remediator.

 

Contact The Cotocon Group for more information, (212) 889-6566.

Bills Within The Act

 

By now almost everyone has an idea about what the Climate Mobilization Act, i.e the Green New Deal entails.  It’s all over the news and social media, but what’s not there is the fine print.  The laws within the Act are precisely the most important pieces of the entire puzzle.  There are several bills or Local Laws in the Green New Deal,that we at The Cotocon Group have carefully put together for you.

 

Local Law 97 of 2019:

Reducing Greenhouse Gas Emissions

Starting in 2024, buildings over 25,000 square feet will be mandated to meet carbon emission limits.  Buildings that exceed their designated Energy Use Intensity (EUI) limits will face steep penalties, depending on their facility.  There are initiations of emission trading systems to be updated by 2021 as well as renewable energy credits (RECs) limited to NYS electric generation for up to 10% of compliance with the emission limit of a building.

 

Local Law 96 of 2019:

Property Assessed Clean Energy (PACE) Voluntary Finance Program

Establishes a Property Assessed Clean Energy Program, i.e PACE.  A sustainable energy loan program which is a voluntary financing mechanism that will provide low-cost, long-term funding for energy efficiency projects. P  PACE will help building owners finance energy efficiency projects that are required by the new legislation in order to mitigate greenhouse gas emissions citywide.

PACE financing will be repaid as an assessment on the property’s regular tax bill and can be used for commercial, nonprofit, and residential properties.

 

Local Law 94/92 of 2019:

Requirement of Green Roofs on NYC Buildings

Requires the inclusion of a green roofing zone in new construction and for buildings undergoing certain major renovations.  This roofing zone must be comprised of a photovoltaic (PV) electricity generating system (Solar Panels) or a green roof.  Buildings with greater than 200 square feet of usable roof space must install a minimum of 4kW PV electricity generating system.  If a building is unable to install a PV electricity generating system, a green roof system must be utilized.

 

The Cotocon Group

NYC Green New Deal

 

These package of bills aim to significantly reduce New York City’s greenhouse gas emissions and fight against climate change.  The NYC Climate Mobilization Act includes local laws, introductions, and resolutions.  We can only hope that these bills as well as property owners compliance will lead to a productive and positive outcome for our planets future.

 

The Cotocon Group believes firmly in a sustainable environment and works side by side with developers,  building owners, and property managers to guide them into compliance.  For any questions or information, please call us at, (212) 889-6566.

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