Local Law 97 for Co-op and Condo Owners

Local Law 97 caps the greenhouse gas emissions of most New York City buildings over 25,000 square feet, and a building that goes over its cap pays a penalty of up to $268 for every metric ton of excess carbon. If you own a co-op or condo in a covered building, you won’t get a bill from the city yourself, but the building’s penalties and retrofit costs reach you through maintenance, common charges or a special assessment.

The limits started in 2024 and tighten sharply in 2030. That second deadline is the one most boards are planning for now.

Is my building covered?

The law covers, as shown in Department of Finance records:

• a single building over 25,000 gross square feet;
• two or more buildings on the same tax lot that together exceed 50,000 gross square feet; or
• two or more condo buildings governed by the same board of managers that together exceed 50,000 gross square feet.

Most mid-size and large co-ops and condos meet that test. The law excludes some property, such as city buildings and developments of three stories or less where each owner maintains their own heating and hot water system. Most private buildings follow Article 320, the emission limits. DOB says a separate track, Article 321, covers buildings where more than 35% of units are rent regulated, buildings in a project-based federal housing program, property owned by a housing development fund company (HDFC), and houses of worship. Article 321 buildings must carry out required energy measures instead of meeting the emission caps. A co-op or condo with few or no rent-regulated units follows Article 320.

1. 1

   Find the building on the Covered Buildings List

   The Department of Buildings (DOB) publishes a yearly Covered Buildings List (the Filing Year 2026 list, published in March 2026, is on the DOB Local Law 97 page). Search by BBL, the borough-block-lot number. See BBL and BIN explained.
2. 2

   Check which article applies

   Ask the board or managing agent whether the building follows Article 320 (emission limits) or Article 321 (required energy measures for buildings more than 35% rent regulated, HDFC co-ops and some other affordable housing). DOB says the list is for reference only.
3. 3

   Look at the energy grade

   Under Local Law 84 the building reports energy and water use every year by May 1. Under Local Law 33 it gets an A to F (or N) grade that must be posted near each public entrance.
4. 4

   Ask the board for the LL97 report

   A design professional files the emissions report each year by May 1. It shows whether the building is under or over its limit.

You can find a building’s BBL and city records on Roofy’s building lookup, and BBL and BIN explained covers the ID numbers.

How the limit is calculated

Each building’s limit equals its floor area times an emissions intensity limit for its type of use. Apartments are occupancy group R-2. In the law as passed in 2019, the R-2 intensity limits are:

A building’s emissions come from the electricity, gas, oil and steam it uses, converted to tons of carbon with coefficients set in the law and DOB rules. Mixed-use buildings add up a separate limit for each use. Your building’s engineer will use the current DOB rules, which govern the details.

The penalty formula

The per-unit column assumes equal shares. In a real co-op the cost is split by shares, and in a condo by each unit’s common interest. The penalty repeats every year the building is over, which is why most boards compare the fine against the one-time cost of retrofits. Try your own numbers in the Local Law 97 fine estimator.

Failing to file is expensive too. For the same 100,000 sq ft building, the late-report penalty could reach $50,000 a month. The law says there is no penalty if a report showing compliance is filed within 60 days of the due date.

How LL97 reaches your monthly costs

The building pays, then recovers the money from owners. There are three common routes:

• Higher maintenance or common charges to cover yearly penalties or the debt service on a retrofit loan.
• A special assessment to pay for boiler replacement, heat pumps, insulation, window work or controls. See special assessments in co-ops and condos.
• Reserves: the board spends savings, which can mean a larger assessment later for something else, such as the facade.

Lower-value co-ops and condos may be able to offset part of the work through the J-51 R tax abatement, which HPD says supports energy upgrades that help with Local Law 97.

Penalties can be reduced, not just paid

The law tells the hearing tribunal to weigh mitigating factors when it sets a penalty, including good-faith efforts to comply, past compliance, events outside the owner’s control, and access to money. DOB also accepts adjustment applications for buildings facing financial or physical constraints under §320.7. These are tools for boards and their engineers, not owners individually, but it is worth asking whether your board has used them.

Key dates

1. 2024

   First emission limits apply

   Calendar year 2024 was the first year measured for most covered buildings.

2. May 1, 2025

   First reports due

   Reports for 2024 emissions; then by May 1 every year.

3. Every October 1

   Energy grade label released

   Post it near each public entrance within 30 days.

4. 2030

   Limits tighten

   The multifamily limit drops by about 40% from the 2024 level.

5. 2050

   Net zero goal

   Later limits are to be set by the city.

Questions to ask before you buy

• Is the building on the Covered Buildings List, and under Article 320 or 321?
• Did it file its LL97 report, and was it over the limit for 2024 or 2025?
• Has an engineer projected emissions against the 2030 limit? What does it say?
• What retrofit plan, cost estimate and financing has the board approved?
• Is any LL97 work listed in the board minutes or the budget as a future assessment?

Your attorney should ask these during co-op due diligence. For the building-wide compliance rules, see Local Law 97 compliance and Local Law 84 benchmarking.