Borah, Goldstein, Nahins & Goidel, P.C. Borah, Goldstein, Nahins & Goidel, P.C. 2026-06-02T16:47:06Z https://www.borahgoldstein.com/feed/atom/ WordPress /wp-content/uploads/sites/1302479/2019/10/cropped-512-32x32.jpg On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[Clear for Takeoff on Local Law 97]]> https://www.borahgoldstein.com/?p=53027 2025-03-21T13:47:28Z 2025-03-21T13:43:17Z Local Law 97 (LL97) summary. We are excited to present a two-part series to ensure no building is left behind on LL97 or subject to undue penalties:
  • In this Part 1 piece, we will update you on the latest developments from the Department of Buildings on achieving successful compliance by May 1st.
  • In Part 2 (to be released in the coming weeks), we will provide you with a list of accessible, immediate, action items that your Board can undertake to avoid pitfalls in the compliance process.

NYC’s Energy “Witching Hour”

May 1st, 2025 is the critical date for buildings 25,000 sq. ft. and over. On that day, three simultaneous pieces of energy compliance are due to the Department of Buildings (DOB):
  • Local Law 84 (Energy benchmarking). This law has been in effect since 2009, requiring the submission of all energy and water data to the DOB every May 1st. This is completed via the online platform ENERGY STAR Portfolio Manager.
  • Local Law 88 (Lighting & submetering). All common area lighting in buildings must adhere to NYC code. Any commercial tenant spaces over 5,000 sq. ft. must also be submetered. An engineer must verify these details in a one-time report.
  • Local Law 97 (Building emissions report). Buildings must determine their annual carbon emissions for calendar year 2024, with all data and calculations verified by a Registered Design Professional (RDP). Emissions limits intensify in 5-year increments.
Note that the Department of Buildings recently announced a 60-day “grace period” for buildings to submit their Local Law 97 reports. That means buildings have until June 30th to submit without penalty. Beyond that, they can also apply for an extension until August 29th, so long as that extension request is submitted before June 30th. Some properties may be eligible to extend their Local Law 88 filing deadline as well.

Choosing the Right Compliance Pathway

Not all buildings are created equally in the eyes of the DOB. For Local Law 97, buildings will fall into one of the following categories, each with its own specifications and costs:
  • Typical Pathway. Buildings must submit annual emission reports starting on May 1st, 2025 and every year thereafter.
  • 2026 Rent Regulated ≤ 35%. Flexibility is granted to buildings where at least one unit (but not more than 35% of all units) is rent regulated. The first annual report is not due until May 1st, 2027.
  • 2035 Income Restricted Extension. Buildings with ≤35% of rent regulated units and at least one income-restricted unit are not obligated to submit annual reports until May 1st, 2036.
  • Article 321 Compliance. HDFCs and affordable buildings have a unique LL97 path. These properties must complete 13 Prescriptive Energy Conservation Measures (“PECMs”) or prove their emission limits are below the 2030 carbon threshold.

Using the BEAM Platform

The DOB has selected BEAM (Building Energy Analysis Manager) as the centralized platform for gathering and filing all Local Law 97 and Local Law 88 materials. This includes the actual building emissions reports and any supporting documentation (for example, photos of lighting upgrades for LL88 compliance, etc.). BEAM is already in use nationally as a tool to aggregate energy data and simplify compliance. For NYC buildings, BEAM will integrate with Portfolio Manager, where all Local Law 84 energy benchmarking takes place. Through this connection, energy data will automatically flow into BEAM, which then calculates a building’s emissions limit for the given year. BEAM will also sync with the DOB NOW public portal, where buildings must pay the appropriate filing fees (see below) and any carbon penalty payments (if applicable).
Local Law Explanation Amount
Local Law 88 (One-Time Fees) Report required upgrades to lighting systems, installation of sub-meter1 $115
Local Law 97 (Annual Filing Fees) Simple Report: No changes needed to LL97 formula2 $210
"Complex" Report: Custom changes needed for LL97 formula (e.g., multiple buildings on one lot; shared energy service; etc.) $615
Request for Extension: File later, under certain circumstance3 $60
Good Faith Efforts Report: Part of the "Mediated Resolution" process to request mitigated penalties $950
1Local Law 88 requires all buildings 25,000 sq. ft. and over to ensure their lighting is up to code, and complete submetering in all commercial spaces over 5,000 sq. ft., with approval from an engineer. 2This should be the most prevalent Local Law 97 report style for market-rate, single-building condos and coops. 3Deadline extension requests are due by June 30th, 2025 and require that a Registered Design Professional (RDP) state that they have been hired to complete the work. As of March 3, 2025, the BEAM platform is officially live for NYC buildings subject to Local Laws 97 and 88. Buildings won’t be able to access BEAM until the above fees are paid via DOB Now. Also, if your building is simultaneously completing Local Law 97 and 88 this year, you do not have to pay filing fees for both items; only the filing fee for LL97 will be required.

If May 1st is the Deadline, What Happens on May 2nd?

Once Local Law 97 building reports are submitted, DOB staff will review all submissions in BEAM for completeness using standard review templates, based on the specific pathway and report type. Feedback and comments will be provided to the applicant as needed. Ultimately, there are three potential outcomes from the review:
  1. Building is fully compliant with Local Law 97. No further action is required until May 1st, 2026, when the annual process repeats.
  2. Building is not compliant with Local Law 97 and will be subject to penalties. These penalties will be assessed based on the extent of carbon emissions over the allowable limit. Once penalties are paid, no further action is required until May 1st, 2026.
  3. Building is not compliant with Local Law 97, but successfully demonstrates “Good Faith Efforts” to earn mitigated penalties. Supplementary documentation is required.

How to Ace Compliance

To avoid financial penalties, DOB scrutiny, and compliance headaches, make sure your building has a partner to guide you through the following steps:
  • Confirm your property’s Local Law 97 Compliance Pathway
  • Register for a DOB Now account, if not already done. Accessibility to the BEAM platform will not be available until all filing fees have been paid via DOB Now.
  • Sync your property’s ENERGY STAR Portfolio Manager
  • Verify your building’s Gross Floor Area (GFA) via measured drawings, floorplans, engineering study, etc.
  • Create a BEAM account and load your property information using the same login information from DOB Now and Portfolio Manager
  • Prepare one emissions report per building (or multiple reports for multiple buildings)
  • Secure attestation from a Registered Design Professional (RDP), signifying that all calculations within the building report are accurate.
This series is presented in partnership with Logical Buildings, whose tech and services can help building owners (including condo and coop boards) cut utility costs through smart energy behavior. Logical Buildings supports NYC multifamily operators through energy compliance, avoiding carbon penalties, reducing operating expenses, and the potential generation of revenue through energy usage modifications. For LL97, Logical Buildings has built a platform that tracks emissions, stores energy data, and manages the full compliance process. Questions or requests for information regarding the services offered can be directed to Alex Zafran from Logical Buildings at azafran@logicalbuildings.com. Likewise, attorneys at Borah, Goldstein, Nahins & Goidel, P.C., remain ready and available to assist our clients with LL97 compliance, including representing property owners in energy efficiency improvement projects and financing to fund the cost of such projects. For more information or any questions, please do not hesitate to contact Eric M. Goidel, Esq. at egoidel@borahgoldstein.com or Brandon James, Esq. at bjames@borahgoldstein.com.]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[Local Law 97 Climate Mobilization Act: Penalties Begin in 2024]]> https://www.borahgoldstein.com/?p=52266 2023-08-11T22:38:35Z 2023-08-11T22:38:35Z Penalties for Noncompliance Failure to comply with the applicable emissions limits can result in significant penalties, with excess emissions fined at the rate of $268 for each metric ton of emissions over a building’s permitted limit. According to a study commissioned by the Real Estate Board of New York (REBNY), even with significant attempts to come into compliance, more than 3,700 buildings could fail to meet 2024 cap goals. This number jumps to 13,500 buildings by 2030, at which point fines could collectively reach $900 million annually. The study concluded that “substantial investment in energy efficiency will not be enough for many buildings . . .” The law also imposes considerable fines for failure to timely file annual reports, equal to $0.50 per building square foot per month. Owners that file false statements can be subject to misdemeanor charges, a fine of $500,000, and civil penalties of up to $500,000.

Immediate Actions for Meeting Emissions Limits

As noted above, while most buildings subject to LL97 will already be in compliance for 2024, the opposite will be true with respect to 2030 limits. As a result, most property owners will have to take significant steps over the next 7 years to reduce carbon emissions. Presently, fewer than 13% of commercial buildings are in compliance with 2030 limits, and nearly three-quarters of such commercial buildings have emissions levels more than double the permitted amount for 2030. Since they rely more on electricity rather than fossil fuels, it is anticipated that commercial buildings will benefit the most from statewide grid decarbonization without needing to undertake significant upgrades. For residential buildings subject to the law, representing the majority of those buildings presently over the 2024 limits, compliance will often translate into expensive retrofitting of gas and oil furnaces and mechanical systems with more energy-efficient technology. This will likely present a major engineering challenge in many older buildings. A low cost first step is training building operations staff in energy efficiency best practices, as well as making changes to equipment schedules and temperature set points. Operational changes such as heating plan conversions from oil to natural gas can significantly reduce a building’s heating and cooling expenses. Changing old lighting to energy efficient lighting can provide a quick payback. Buildings with commercial spaces should also give thought to a prospective tenant’s energy usage when negotiating leases and may want to consider passing a portion of any emissions penalties for exceeding emissions limits through to commercial tenants.

Current Exceptions and Pending Modifications

Notably, LL97 currently exempts certain properties, including those buildings with 35% or more rent regulated apartments. However, buildings containing rent regulated accommodations must still demonstrate by December 31, 2024, that they are either (i) in compliance with the applicable emissions limits, or (ii) otherwise have implemented certain energy efficiency measures as specified in LL97. The energy efficiency measures include, but are not limited to, adjusting temperature set points, repairing system leaks, insulating pipes and tanks, installing temperature sensors, upgrading lighting, weatherizing and air sealing. Nevertheless, cooperative and condominium buildings with 35% or more rent regulated apartments would be prudent to plan for compliance with LL97, given that boards cannot control whether apartments will remain subject to regulation. Legislation has been passed since 2019 to further modify and limit this exemption. Buildings with one or more rent regulated apartments that constitute less than 35% of the total number of units are not exempt but have an additional two years until 2026 to comply with emission limits As the exact requirements of LL97 are still fluctuating, it is important for property owners to stay informed in the coming months and years.  Earlier this year, the New York City Department of Buildings released additional rules further elaborating upon LL97 implementation and requirements, with more rules on the horizon for later this year. As part of such future rules, the city will be considering the grounds under which individual buildings may be given reductions in penalties if they can show “good faith efforts” have been made to comply with the law. On the other end of the spectrum, there is also an effort to restrict the amount of Renewable Energy Credits a building will be permitted to purchase to offset any excess emissions. In addition to these evolving rules, there is a recently proposed bill to delay implementation of the LL97 requirements by seven years, and a lawsuit challenging the enforcement of the law outright. However, such efforts appear unlikely to delay or prevent the implementation of the law.

Resources and Recommendations

No property owner should wait to get into compliance, as the demand for qualified contractors to perform work to make buildings more energy efficient is only increasing.  As the demand for work outstrips the supply of available labor, contract prices will naturally increase.  Additionally, property owners who wait too long may find that they are not able to get the work done in time.  Accordingly, a carbon efficiency assessment should be performed as soon as possible, and a program of upgrades should be phased in over a period of years. Low interest financing may be available, including loans to cooperatives and condominiums provided by the New York City Energy Efficiency Corporation, and loans to owners of multifamily properties through the NYCE Accelerator Pace Program where the debt service costs appear on a building’s New York City property tax bill.  However, restrictions contained in existing mortgages may prohibit the taking of such loans or, at a minimum, require the consent of the existing lender. Attorneys at Borah Goldstein stand ready to assist our clients as they navigate the evolving LL97 requirements. We have attorneys who are qualified to help property owners with the preparation of contracts for capital improvements as well as the financing of properties to fund the cost of such projects. Please contact Brandon James if you have any questions.]]> by Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[New RGB Order #55 and New DHCR Renewal Lease Form]]> https://www.borahgoldstein.com/?p=52170 2023-07-12T16:05:15Z 2023-06-29T20:17:14Z Renewal Lease Form We suggest that you include a rider for two-year vacancy leases and all renewals setting forth the rent increases and calculations for each year of a two-year lease. Please feel free to reach out to me or a member of the Administrative Team if you have additional questions.]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[NYC rent stabilization rate-increase decision coming June 21, 2023]]> https://www.borahgoldstein.com/?p=52168 2023-05-25T21:41:10Z 2023-05-25T21:05:04Z Preliminary rates set Now, the owners of approximately one million NYC rent-stabilized units await the final decision on annual rental rate increase numbers, which the NYC Rent Guidelines Board (RGB) will announce on June 21, to begin Oct. 1, 2023. At a May 2 meeting, the Board set preliminary rates of 2-5% for one-year leases and 4-7% for two-year leases. Those rates would apply to rent-stabilized apartment leases entered between Oct. 1 and Sept. 30, 2024. Earlier, the Board had suggested a 15.75% rental rate increase based on the findings in one annual report.

Property owners have real costs

Property owners generally favor rate increases to help cover maintenance and repair needs as well as to pay down ongoing debt. Maintenance is a real expense considering that more than half of rent-stabilized units were built before 1974, according to New York University Furman Center, as reported by the Amsterdam News. The article also notes that while Mayor Eric Adams recognizes the financial needs of landlords, he feels that a 7% increase is too much for renters. However, Amsterdam News quotes Jay Martin, executive director of CHIP (Community Housing Improvement Program, an advocacy organization and trade association for owners and managers of multi-unit housing in NYC) as saying, “Even the highest end of these ranges will not put a penny in rent-stabilized building owners’ pockets … Every single cent of the proposed rent adjustment will go to property tax payments, maintenance, skyrocketing insurance, and mandatory upgrades to buildings.” In the weeks leading up to the final rate announcement, many more public meetings will provide opportunity for input to the Board. Previous meetings have been contentious. We will carefully monitor all related developments for our property owner clients, and report the final decision on annual rate increases for one and two year leases.]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[ERAP update: Application window closed Jan. 20, 2023]]> https://www.borahgoldstein.com/?p=51746 2023-03-29T17:50:58Z 2023-02-08T17:06:48Z The Emergency Rental Assistance Program (ERAP) was closed on Jan. 20, 2023, by the Office of Temporary and Disability Assistance (OTDA). For months, many summary proceedings have been on hold for tenants with pending ERAP applications, even when funding for the program has been exhausted.  OTDA continues to  process all applications submitted on time in the order they were received. 

Ongoing issues

We remain available to answer property owner questions about ERAP issues and to analyze individual circumstances in light of potential legal remedies. Things are in flux, and we will be alert to developments that might impact our clients’ interests]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[Economic pressure on NYC property owners who lease office space]]> https://www.borahgoldstein.com/?p=51747 2023-03-29T17:53:35Z 2023-01-05T17:18:32Z eviction moratoriums and  laws and regulations during the pandemic, some property owners may be hesitant to jump at opportunities that just might pay off.

Reading the economic tea leaves of office leasing

It is difficult to discern how the office-leasing market will evolve over time in NYC and at what point and in what form things will eventually level out. Of course, companies realize now that they do not need as much space if they run hybrid work models, use more flex spaces that do not require cubes for everyone, or even change to 100% work-from-home mandates. So, they may be hesitant to renew their commercial office leases especially if property owners raise rents. Companies may also hesitate to take on new leases. Renewing but for less office space and/or a shorter lease term may at times be an option for a commercial landlord. Colliers monthly leasing data showed that after some upward progress over the summer, from September to October 2022 office leasing in Manhattan dropped a whopping 40%, reports GlobeSt.com. GlobeSt quotes real estate professional Rob Gilman as saying this downward pressure is related to recession fears and employees who do not want to come back to the office.  ]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[NYC housing courts struggling to recover from COVID restrictions]]> https://www.borahgoldstein.com/?p=51367 2023-03-30T13:00:10Z 2022-09-24T00:32:11Z suing for eviction at a slower rate than they did before COVID-19 and that housing court officials are more often requiring in-person participation for the parties and their legal representatives.

Factor: Tenant Right to Counsel

A 2017 NYC law requires low-income tenant access to legal counsel, causing continuances for tenants to find lawyers. Unfortunately, the legal services providers are not staffed properly, adding even more time to the court process.

Factor: Stays for Emergency Assistance Application Processing

A major contributor to the delays in housing proceedings has been the state Emergency Rental Assistance Program (ERAP). A tenant’s filing of an application for rent assistance generates an automatic ERAP stay of eviction pending the resolution of the application. Applications have taken months to process at least in part due to lack of adequate funding. During those months, property owners may not proceed in court. Some property owners have successfully asked the court to vacate ERAP stays, but not all judges see it the same way as others have denied such requests.

Takeaway

Of course, the pandemic and other societal challenges of the past couple of years have impacted property owners. As our partner Todd Nahins wrote in the newsletter New York Apartment Law Insider, the current issues in local housing courts present challenges that require “strong advocacy” to get to justice. He advises property owners to be physically present in court, to show up prepared for trial and to be patient with court personnel. We are keeping a steady eye on the situation at NYC housing courts to understand how to continue to protect our property owner clients interests]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[Constitutional challenges to HSTPA: It’s not over until it’s over]]> https://www.borahgoldstein.com/?p=51713 2022-12-27T22:46:09Z 2022-09-22T21:45:09Z Awaiting court decisions The property-owner plaintiffs sued the state of New York and other governmental entities in U.S. District Courts in New York, alleging that parts of the 2019 Housing Stability and Tenant Protection Act (HSTPA) are unconstitutional. Some of the suits also argue that provisions in preexisting state rent-stabilization laws (RSL) violate constitutional requirements. Both the Eastern District (EDNY) and the Southern District (SDNY) courts dismissed the landlords’ claims and the plaintiffs appealed to the Second Circuit.

Areas of concern

Property owners object to HSTPA provisions that:
  • Make conversion and decontrol of rent-stabilized units more arduous
  • Further limit property-owners’ ability to recover units for personal or family use
  • Restrict eviction of tenants who breach their leases
  • Place more controls over RSL rent increases
  • Make it harder to sell rental properties
  • And others

Unconstitutional takings

The property owners allege that RSL and HSTPA violate the Takings Clause and other constitutional provisions, with some variation of claims among the five complaints. The Takings Clause prohibits the government from taking private property for public use without justly compensating the owners. Plaintiffs allege both unconstitutional physical takings and regulatory takings. A physical taking occurs if the government or someone it authorized literally seizes or occupies property, such as through eminent domain. The owner loses their ability to use or control the property in a physical taking. A regulatory taking is “constructive … which means that the government restricts the owner’s rights so much that the governmental action becomes the functional equivalent of a physical seizure,” explains Cornell Law School’s Legal Information Institute. The district court opinions rejected the property owners’ takings assertions. As the opinion in Building and Realty Institute of Westchester and Putnam Counties, Inc. v. New York states, “[T]he case law is clear: property owners who offer their properties for rent do not suffer from a taking based on laws that regulate the rental of that property.”

In the meantime

This is a high-level snapshot of these important lawsuits that involve complex legal and constitutional questions. While awaiting the Second Circuit decisions, we are available to answer questions and address concerns a property owner or landlord may have about the status of the issues at stake.]]> On Behalf of Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[New legislation makes certain hotel-apartment conversions more attractive]]> https://www.borahgoldstein.com/?p=51348 2022-08-15T15:24:33Z 2022-07-27T15:22:41Z financing to convert distressed hotels hit hard during the pandemic into affordable housing desperately needed to shelter homeless and low-income New Yorkers during a time of record-high rental rates across New York City. Until now, previous rules under the Housing Our Neighbors with Dignity Act (HONDA) apparently required owners and developers to jump through too many hoops to access the subsidies, as very few parties had applied for the public funding. The new bill (S. 4937C/A. 6262B) provides that eligible hotels will no longer need to apply for new certificates of occupancy for the change to residential units and a burdensome review process will be eased, instead allowing local housing authorities to approve these hotel-apartment conversion projects.
  • Eligible hotels must be Class B and in or within 400 feet of districts zoned for residential use, may not be in industrial business zones and must meet certain other conditions.
  • If the hotel workers are represented by a union, the bill requires union approval of each conversion project in order for it to go forward.
  • The renovations must be financed by New York Sate in accordance with HONDA.
  • The tenants of the affordable units can earn no more than 60% of AMI. The units are rent stabilized and subject to permanent affordability restrictions.
Hotel owners or developers with questions about the new law or the conversion process may contact [nap_names id="FIRM-NAME-1"]. Our attorneys would be happy to take such inquiries.]]> by Borah, Goldstein, Nahins & Goidel, P.C. <![CDATA[The New York State Eviction Moratorium Has Ended]]> https://www.borahgoldstein.com/?p=51233 2022-01-22T02:17:26Z 2022-01-22T02:17:26Z
  • There is no longer a requirement for the property owner to send hardship declarations, attach a hardship declaration to predicate notices and demands, nor is it a prerequisite to the commencement of an eviction proceeding;
  • All pending residential and commercial eviction proceedings that have been stayed due to the submission of a hardship declaration may now proceed in their normal course;
  • All residential and commercial proceedings that could not be commenced due to the submission of a hardship declaration may now be commenced;
  • The additional service and filing requirements resulting from the hardship declaration are no longer required.
    • In light of the expiration of the “moratorium”, the Court has issued a new set of orders and directives. These include the following:
    • A motion will still be required to obtain a default judgment and warrant against a tenant;
    • A motion and/or a conference must be held to execute a warrant of eviction that was issued prior to March 16, 2020 as well as warrants of eviction that were issued between March 16, 2020 and September 2, 2021;
    • If a warrant of eviction was issued after September 2, 2021, no motion or conference is needed in order to execute;
    • These directives regarding warrants of eviction do not apply if the tenant is committing property damage or is a nuisance to the other tenants in the building.
    In residential cases, the expiration of the “moratorium” leaves the tenant with the protection of a pending ERAP application, as well as the defense arising from the Tenant Safe Harbor Act (“TSA”). The TSA is a defense that must be asserted and proved by the residential tenant that they suffered a financial hardship as a result of the Covid-19 pandemic for rent that accrued from March 16, 2020 through June 15, 2021. If the residential tenant was able to prove this defense, the property owner would be entitled to a non-possessory money judgment for the outstanding rent that accrued during that covered period and the tenant would be protected against eviction for failure to pay those monies. There is no such defense in a commercial eviction proceeding. It is important that you contact us immediately so that we may take appropriate action on your matter as soon as possible. While it will take some time for the court to get through the backlog of cases that resulted from the “moratorium”, cases will likely be heard on a “first come, first serve” basis. We will be reaching out to you as to the pending matters that we currently have, but it is equally as important to send us the required paperwork so that we can commence any new matters you wish to start. As always, the attorneys at Borah Goldstein are here to guide you through these tough times and assist you in any way we can. If you have any questions, please do not hesitate to contact us.]]>