“Does this place have good energy?”

Buying an apart­ment in New York City is famously not a simple process — and in recent years, a suite of climate-focused city and state regu­la­tions have added addi­tional consid­er­a­tions for poten­tial home­buyers to keep top of mind, beyond things like south-facing windows and in-unit laundry. The New York City Climate Mobilization Act (CMA), a package of climate laws geared toward lowering emis­sions city­wide, includes several compo­nents that directly impact apart­ment build­ings. Key compo­nents of the law include require­ments for energy audits (Local Law 87), green roofs or solar panels (Local Laws 92, 94), the phasing out of specific fuel types (Local Law 32), and more. 

For most apart­ment build­ings, the more signif­i­cant aspect of the CMA is Local Law 97 (LL97), which mandates caps on building emis­sions for build­ings over 25,000 gross square feet (you can read more about the law in our explainer here). These emis­sions caps tighten over time, with fines for non-compli­ance or late reports.

What does that mean for building and apart­ment owners? LL97 will certainly have broad, longer-term posi­tive impacts on New Yorkers — public health improve­ments, more resilient housing, and a more sustain­able future. But in the mean­time, it will be the respon­si­bility of indi­vidual build­ings to make signif­i­cant updates and upgrades to their infra­struc­ture in order to comply with the emis­sions limi­ta­tions set for the next mile­stone in 2030 — and beyond. These costly improve­ments can range from new heating and cooling systems to energy-effi­cient windows, new insu­la­tion, or even new exte­rior cladding. 

Current and future home­owners in covered build­ings will almost certainly be impacted by higher main­te­nance charges, capital assess­ments, and more. For those on the hunt for a new apart­ment, here are some key ques­tions to ask during the search:

1. Is this building subject to Local Law 97?

The first, most impor­tant ques­tion is whether these regu­la­tions even apply, based on a building’s size. The answer here may be an obvious ​“no” if a buyer is looking at a smaller building, like a brown­stone or a walk-up. But any building 25,000 square feet or larger is subject to the law. This desig­na­tion roughly aligns with a mid-sized New York City apart­ment building: A six- or seven-story elevator building on a 50×100 foot lot would be just about 25,000 square feet. Before visiting a poten­tial building, it may be worth doing research before­hand, espe­cially because there are some caveats to the law’s applic­a­bility. You can look up whether any building is subject to LL97 on the city’s covered build­ings list here.

2. What’s the building’s current status in terms of LL97 compliance?

Compliance with LL97 is not some­thing that a buyer can confirm from public real estate list­ings alone, and there are no laws that state that a seller must disclose this infor­ma­tion. In fact, the average owner may or may not be aware of the details of compli­ance, energy audits, or fines. Buyers will likely need to rely on their real estate agent or attorney to find out this infor­ma­tion through board minutes, monthly fees history, the review of past annual emis­sions reports, and more, cautions Samantha Michel, a licensed real estate sales­person at KWNYC: ​“In estate sales, for example, the execu­tors may have limited knowl­edge of building finances; they’ve simply inher­ited the unit, so I recom­mend not relying solely on what’s disclosed upfront.” 

It is possible to confirm a building’s current or projected penal­ties for LL97 using different online tools, such as reviewing the ​“Penalties Owed” button after searching for a building’s address in the Department of Buildings’ portal, DOB Now. Active penal­ties or viola­tions (but not past ones) are noted by filtering through various local laws. NYC Accelerator also provides specific infor­ma­tion about your build­ing’s energy use and LL97 compli­ance status, but since the infor­ma­tion is ​“projected,” rather than actual, it’s still best to directly request infor­ma­tion such as LL97 emis­sions reports, energy audits for LL87 (more on that below), and board meeting minutes.

3. Is this building subject to Local Law 87? Has an energy audit been done?

Local Law 87 (LL87) requires that large build­ings (over 50,000 square feet) complete an Energy Efficiency Report every ten years, starting in 2009. If a buyer is looking at an apart­ment in a large building, the comple­tion of these reports contex­tu­al­izes the building’s existing systems perfor­mance through an energy audit and retro-commis­sioning, which ensures that existing systems are prop­erly cali­brated and func­tioning as intended. Compliance with LL87 means filing the reports with an energy profes­sional every ten years and performing the retro-commis­sioning of building systems, so it typi­cally does not have the same finan­cial impacts as the impli­ca­tions of LL97 (although there are fines for late reports or non-compli­ance). However, it is helpful to review these reports because of what they note about the state of existing systems.

4. Are there any plans in place to address Local Law 97 requirements?

A building might currently be in compli­ance and have no need for any present improve­ments or upgrades. However, as John Walkup, co-founder of New York-based real estate analytics company UrbanDigs explained, ​“The 2024 caps were meant to be lenient, but in 2030, the caps shrink, so a building that’s okay today could face stiff penal­ties down the road.” Potential buyers will want to know if the board or building manage­ment is forward-looking with a plan in place to address any future required upgrades. 

5. What kind of approvals or agree­ments from the board are needed in order to set assess­ments, enact capital projects, or levy main­te­nance increases? What is their approval process like?

Both infra­struc­ture plan­ning and cost increases are typi­cally decided upon by the co-op or condo board, and it can be helpful to under­stand what their deci­sion-making process is like. Buyers should look at how many people comprise the board, how frequently they meet, whether deci­sions need to be unan­i­mous in order to be approved, and how these deci­sions get commu­ni­cated to resi­dents. Buyers may even want to review the back­ground of board members — do any have expe­ri­ence or exper­tise in engi­neering, capital projects, or related sectors? Or does the board rely entirely on outside consul­tants or others to assist in decision-making?

6. What are the current heating and cooling systems?

Understanding the basics of how a building is heated or cooled is a helpful way to under­stand a building’s poten­tial vulner­a­bility to LL97 caps, because heating systems are the biggest factor in a building’s carbon footprint. 

Most prewar and mid-century build­ings in New York City have a central oil- or gas-powered boiler with steam or hot water radi­a­tors providing heat to apart­ments; domestic hot water is usually gas-fired. The worst culprits are typi­cally oil-fired systems, partic­u­larly ones that run on #4 oil (which is being phased out under LL32), because their high combus­tion emis­sions count towards the LL97 calcu­la­tion. If a building has equip­ment that runs on #4 oil, buyers should antic­i­pate upcoming replace­ment costs and possibly also conver­sion to an all-elec­tric heating system, which would replace the on-site combus­tion of fossil fuels with elec­tric-powered equipment. 

Many build­ings are looking to convert to all-elec­tric systems for several reasons. These systems remove or reduce reliance on oil- or gas-powered equip­ment, and are also extremely effi­cient: They transfer heat rather than generate it through combus­tion, and often cooling can be provided by the same equip­ment. However, elec­tri­fi­ca­tion is not a simple swap: Installing heat pumps and other equip­ment typi­cally requires an upgraded elec­trical service, new elec­trical distri­b­u­tion panels, increased elec­trical riser capacity, and some­times also exte­rior enve­lope improve­ments that enable heating systems to operate effi­ciently during cold weather. If this type of conver­sion is in the works or is forth­coming, resi­dents can expect initial fees to offset the work, but a more cost- and energy-effi­cient system in the long run.

7. Are there any LL97-related projects going on right now?

Ongoing LL97 projects can be a good indi­ca­tion that the building is trying to get ahead of future fines. However, buyers should under­stand what is happening upon move-in. Some upgrades may have minimal impact on a resident’s day-to-day life, like LED fixture replace­ments in mechan­ical spaces. Others would be some­thing to plan around — a window replace­ment project starting just as a new resi­dent is about to hang their curtains, or the instal­la­tion of heat pumps in every unit just as someone is preparing to move in could prove much more disruptive.

8. Is there a resi­dent super­in­ten­dent or regular main­te­nance contracts with compa­nies that can ensure equip­ment is func­tioning efficiently?

Maintenance is one of the most impor­tant factors when it comes to the longevity and effi­ciency of heating and cooling equip­ment; this is what LL87 is trying to target. It’s impor­tant to know who is respon­sible for making sure equip­ment is running the way it’s supposed to: Outside consul­tants? A building engi­neer? No one? A buyer may also consider viewing places like the base­ment or a rooftop mechan­ical bulk­head; while engi­neering exper­tise and hands-on testing are required to deter­mine equip­ment effi­ciency, a clean and well-kept mechan­ical room is a sign that the equip­ment is well cared for and maintained.

9. When was the last time the windows and HVAC systems were updated or replaced?

Gilbert Michaud, PhD., a professor at Loyola University Chicago whose work focuses on renew­able energy policy and energy effi­ciency, recom­mends asking this ques­tion because of the impli­ca­tions of older infra­struc­ture. Older equip­ment tends to be less effi­cient, making a building more suscep­tible to higher emis­sions — and poten­tial replace­ment costs through assess­ments or increased monthly main­te­nance in the future.

10. How does the building or board plan on paying for any required upgrades? What would be the time­line for any asso­ci­ated cost increases?

Many build­ings do not have funds in their reserves to imme­di­ately and directly address the large-scale upgrades that might be required in order to comply with upcoming LL97 emis­sions caps. New, energy-effi­cient mechan­ical equip­ment can easily cost several hundred thou­sand dollars, and building-scale retro­fits can easily cost in the millions. Homebuyers should be aware that coops and condos will likely handle upgrades through different finan­cial vehi­cles. ​“Will it be a one-time assess­ment, a monthly one with an end date, or an increase in main­te­nance?” asks Veronique Perrin, a real estate agent at Coldwell Banker Warburg. A buyer might find a short-term charge accept­able if it means new heating and cooling sensors or new windows, while a long-term main­te­nance increase that will only continue to grow in the future may be less appealing. A lack of clarity about costs and timing should be a red flag that the building has not done enough planning.