NYC Sets Up Fund to Help Buildings Comply With Emissions Law
The GreenHOUSE Fund is to help low-income co-ops and rent-regulated apartments pay for emission reduction projects.
New York City is making it easier for building operators to comply with Local Law 97 by subsidizing them with a fund.
The 2019 law requires emission limits on most buildings in the region that exceed 25,000 square feet. It impacts nearly 50,000 buildings. The goal of Local Law 97 is to cut emissions by 40 percent by 2030 and 80 percent by 2050.
Property owners can purchase offset certificates for 10 percent of the building’s emission limits ahead of the compliance reporting deadline, which is set for May 2025.
For assistance, New York City Mayor Eric Adams has announced the creation of a GreenHOUSE Fund, which will take the proceeds from the certificates and allocate them towards electrifying and decarbonizing affordable housing projects. The GreenHOUSE Fund is designed to help low-income co-ops and rent-regulated apartment operators pay for emission reduction developments.
Failure to abide by green policies from Local Law 97, would result in a $268 per ton of carbon emissions penalty.
“The GreenHOUSE Fund will use offset purchase revenue to provide assistance to rent regulated buildings and low-income co-ops, so that every homeowner can afford upgrades on the path to carbon neutrality,” New York State Assemblymember Jenifer Rajkumar, said in a statement.
“I will be working with all stakeholders to provide the resources for everyone to comply with Local Law 97 and will fight for reforming the J-51 tax incentive to apply toward decarbonization.”
She added that once the law takes full effect it will not only create 26,700 jobs, but it will boost property values, prevent hundreds of deaths, and lower energy costs.
New York City operators who need help complying with Local Law 97 are encouraged to reach out to its NYC Accelerator program, which provides assistance and helps property owners apply for financing and incentives. The initiative has reduced emissions by 19,400 tons and saved building owners over $5 million since Adams first took office.
Additionally, Adams has encouraged the New York City Council to implement the J-51 housing quality tax incentive program, which was passed into law on the state level by New York Governor Kathy Hochul.
“The City Council must pass the J-51 property tax abatement, which will bring funding to improve buildings that house low- and middle-income New Yorkers,” said Elijah Hutchinson, the mayor’s office of climate and environmental justice executive director.
Gas emissions alone account for nearly 70 percent of the Metro area’s total carbon footprint.