Residential Housing Conversions Could Shape Post-Pandemic New York
One of the many laws activated upon the turn of the year was Local Law 97, an element of 2019’s Green New Deal. This citywide plan seeks to reduce greenhouse emissions by 30% by 2030 and even further, to 80%, by 2050.
Around 50,000 buildings of more than 25,000 gross floor area (GFA) are subject to specific emissions limits each compliance period, the first of which spans 2024 through 2029. The City will fine property owners that exceed the annual threshold at a fixed rate for each compliance period — until 2030, buildings will pay $268 per ton of CO2 (or equivalent greenhouse gas) in excess energy usage.
About two-thirds of New York City’s buildings are non-compliant with Local Law 97’s second threshold, effective from 2030 to 2034, which offers the City a unique opportunity to kickstart the transition: sponsor commercial to residential conversions.
Sustainable development firm Arup believes that conversions could more than halve greenhouse gas emissions, since multi-family residential properties have recorded far lower energy use intensities (EUI) than their office counterparts. Also, the office market’s elevated vacancy rates since the coronavirus pandemic raise questions as to whether this space could be better utilized.
Mayor Eric Adams proposes changes to zoning codes to facilitate residential conversions, since the local government has emphasized a need for more housing. On the other side of the discussion, landlords view tax incentives and public subsidies paramount to any progress. A concerted effort to use developed space for new apartment units could both flood the rental market over the next few years and constrict supply of dedicated commercial space.
To learn more about Local Law 97 compliance and office-to-residential conversions, call the Law Office of Marc Scolnick, P.C. today at (718) 554-6445 or refer to the header at the top of this page to set up a FREE consultation.
Sources: New York City Accelarator, Arup, New York Times.
https://www.nytimes.com/2023/12/07/nyregion/office-conversions-carbon-emissions.html
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