As chair of the City Council’s Finance Committee, it is my responsibility to make sure the numbers add up. Whether we’re negotiating the city budget to protect the essential services New Yorkers rely on or pushing comprehensive plans to overhaul our outdated and regressive property tax system, it’s my job — and the job of my dedicated Council colleagues — to make sure we’re aligning our budget priorities with our values.
This year the city’s landmark new climate law, Local Law 97, officially went into effect. Passed by the City Council in 2019, the law (which I was proud to co-sponsor) requires the nearly 50,000 buildings in the city more than 25,000 square feet to meet strict emissions limits or face annual fines beginning next year. Owners can meet these limits in a variety of ways, from retrofitting their fossil fuel boilers to improving insulation.
I firmly support the goal of this legislation. I’m not looking to change it or pause it. Just the opposite, I know we must act urgently to address the threat of climate change, which poses an existential risk to people living in coastal neighborhoods like the ones I represent in southern Brooklyn.
Tackling building emissions, which account for roughly 70% of the city’s overall carbon emissions, is a critical component of our efforts. But right now, the math just isn’t working.
Let’s break down the numbers. City data shows that Local Law 97 will require approximately 15,000 property owners around the city to invest up to $15 billion in capital improvements by 2030. These costs will be particularly difficult for residential buildings.
According to data from the New York State Energy Research and Development Authority, the upfront cost of retrofitting a larger multifamily building in New York City can exceed $20,000 per unit, which will result in meager annual energy cost savings.
The alternative for owners who aren’t willing to shoulder these costs is to pony up for annual fines. Here too, the math is sobering. The buildings currently out of compliance with the law could face a cumulative $213 million in fines next year. By 2030, that number skyrockets to $902 million. By 2040, it jumps again to $1.3 billion.
Now, many residents of these buildings are facing a painful choice: Do they swallow the cost of these upgrades or pay the fine? I’ve spoken to many property owners who have said they believe in the goals of the law, but they’ll be forced to just pay the fine because it’s more cost-effective.
But make no mistake: Many low- and middle-income residents of affordable co-op and condominium buildings, who will bear the cost of upgrades in the form of higher maintenance fees or fines passed on by the owners of their buildings, are staring down the prospect of significant financial hardship either way.
The goal here is to reduce the emissions produced by the city’s largest buildings, not to raise revenue by issuing violations because fines won’t fix greenhouse gas emissions. So we need to find a better way to drive down building emissions without imposing onerous burdens on homeowners who simply can’t afford it.
Thankfully, our colleagues in Albany are proposing a solution. The Growing Resilient & Energy-Efficient NY (GREEN) Buildings Act, sponsored by state Sen. Kevin Parker and Assemblymember Ed Braunstein, would provide property tax abatements for up to 10 years, for eligible New York City property owners who undertake capital improvements to reduce carbon emissions.
This targeted relief would offer a needed incentive for residential buildings to come into compliance with the law, helping clean our air and decarbonize our building stock in the process.
Recently, 34 of my Council colleagues sent a letter to Senate Majority Leader Andrea Stewart-Cousins and Speaker Carl Heastie urging them to prioritize passage of the GREEN Buildings Act this session. It’s critical that the Adams administration follow suit. In testimony before the Senate Finance and Assembly Ways and Means Committees last month, the mayor signaled an openness to this kind of tax relief.
Now, we need to present a united front as a city on behalf of vulnerable homeowners fretting about how they’ll be able to comply with these mandates. With stronger emissions limits set to go into effect as soon as 2030, there’s no time to waste.
Local Law 97 rightly established New York City as a national environmental leader — but we can’t ignore the real concerns being expressed by co-op and condo residents across our city. Without meaningful mechanisms to help property owners meet its targets like the GREEN Buildings Act, we won’t be successful in driving down emissions. It’s just basic math.
Brannan is chair of the City Council Finance Committee.
