Local Law 97 Is Now in Effect

New York City's most sweeping building emissions law has officially moved from compliance planning to penalty enforcement. Local Law 97 imposes strict emissions limits on buildings over 25,000 gross square feet and requires those buildings to submit annual emissions reports to demonstrate compliance, with significant fines for buildings that exceed their limits. For condominium and co-op boards, that is no longer a future concern. The fines are here.

What Is Local Law 97?

Local Law 97 is the cornerstone of NYC's Climate Mobilization Act, passed in 2019, setting carbon emissions limits for buildings over 25,000 square feet as part of the city's plan to reduce greenhouse gas emissions 80% by 2050. It is widely considered the most ambitious building emissions law in the United States.

For boards, the key question is whether your building is covered. LL97 generally applies to a single building larger than 25,000 gross square feet, multiple buildings on the same tax lot whose combined size exceeds 50,000 square feet, and multiple buildings owned by a condo association governed by the same board whose combined size exceeds 50,000 square feet.

Where Things Stand in 2026

The first annual building emissions report was due May 1, 2025, covering calendar year 2024. The NYC Department of Buildings is now actively collecting penalties for 2024 non-compliance. May 1, 2026 is the final penalty assessment date for the first compliance year, after which the DOB issues Notices of Violation for buildings over their cap and begins collecting fines.

For buildings that were not required to file in 2025, the situation is equally pressing. 2026 is the first official compliance year for a large number of buildings, many of which may not realize they are now on the hook. If a property was not required to submit a 2025 report, its very first Local Law 97 filing is due May 1, 2026, based on 2025 emissions. Boards should verify their status on the NYC Department of Buildings' Covered Buildings List.

What the Fines Look Like

Penalties for exceeding carbon limits are now active. The fine is $268 per metric ton of CO₂ equivalent over a building's specific emissions limit, calculated annually and not as a one-time charge. For a 100,000 square foot building that is significantly over its limit, annual penalties can easily reach six or seven figures if no action is taken.

If a building fails to report, automatic late penalties are assessed. If reported emissions exceed the limit, the DOB issues penalty assessments, and continued non-payment can result in a lien being placed on the property.

How Boards Typically Absorb the Costs

Boards have three primary ways to handle the financial impact: raise maintenance or common charges across the board, pass a one-time special assessment, or borrow against the building through an underlying mortgage refinance for co-ops or a special line of credit for condos. In affected Manhattan and Brooklyn buildings, a 4 to 8% maintenance increase tied to LL97 has become increasingly common.

Is There Any Relief?

The DOB published a good-faith effort pathway for buildings that filed late or filed with errors. Buildings that can show they retained an engineer, started decarbonization work, and submitted before the May 1, 2026 final deadline may qualify for an emissions penalty adjustment. Late-filing fees apply separately regardless.

For 2026, if additional time is needed to file, buildings may apply for a filing extension via the BEAM Portal by June 30, 2026 for a $60 fee.

What Boards Should Be Doing Now

The most immediate steps are straightforward. Confirm whether your building appears on the NYC DOB Covered Buildings List, verify that your property manager has filed the required annual emissions report and can produce a BEAM Portal submission receipt, and review your building's benchmarking data filed under Local Law 84, which the city cross-references with LL97 filings.

The goal of LL97 is to achieve a 40% reduction in NYC gas emissions by 2030 and an 80% reduction by 2050, with the regulation mandating measurable energy performance and likely requiring retrofits in many buildings. Boards that begin planning capital improvements now, including boiler upgrades, envelope improvements, and electrification projects, are better positioned to reduce ongoing exposure before the second, stricter set of emissions limits takes effect in 2030.