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nyc local law 87 guide
  • Local Law 87: A Quick Guide for NYC Building Owners

  • Published By:
  • Category: Real Estate
  • Published Date: November 1, 2021
  • Modified Date: November 12, 2021
  • Reading Time: 3 Minutes

Featured Image Caption: NYC Local Law 87 Guide

Introduction

Local Rule 87, abbreviated as LL87, is legislation enforced by New York City’s Department of Buildings requiring more than 50,000 gross square feet to undergo comprehensive yet periodic energy audits and retro-commissioning measures. A criterion of this type is contained in the GGBP (Greener, Greater Buildings Plan).

The regulation often applies to business owners who possess large structures. It simply implies that buildings with less than the required gross square feet are exempt from this requirement. It is done because such constructions significantly contribute to the pollution for which the United States is known. Large buildings are being blamed for emitting greenhouse gases, and steps are being taken to reduce such emissions.

Which all building needs to follow Local Law 87?

Under Local Law 87, the following structure must comply with this law:

  • All the buildings have an area that is greater than or approximately equal to 50,000 square feet.
  • Presence of two or more buildings having shared a common taxable land greater than 100,000 square feet.
  • There are two or more tenant-owned buildings, but a joint board of managers shares the ownership. These buildings should have an area equal to or exceeding 100,000 square feet.

Which buildings are exempted under Local Law 87?

The following buildings fall under the category of exemption under Local Law 87:

Suppose any building has been awarded Environmental Protection Administration (EPA) energy label for two to three consecutive years before submitting the report in such a scenario. In that case, the building does not require to submit the information.

If an architect or a designing professional submit a report for your building stating that the energy usage of the building is at least 25 points or more than the average of other buildings, you are exempted.

What is the requirement for Local Law 87?

The requirement for Local Law 87:

  • The Energy Efficient report should be submitted in an electronic format by the building owner.
  • You should submit this audit report every ten years.
  • According to the building tax’s block number, the year according to which the building has to comply for filling the report. For example, if a building has a tax number of 8, you need to file the report by 31st December’2018, whereas if you have a tax number of 9, you have to submit the information by 31st December’2019.

Once you have submitted the report, you should pay the initial fees of $375 and then a subsequent fee of $155 or an amendment of $145.

What are the ramifications of violating this law?

Local Law 87 aims to reduce pollution, and thus building with an area greater than 50000 square feet needs to submit an energy efficiency report every ten years. If you do not submit this report, a fine of $3000 will be imposed for the initial year, followed by $5000 for every subsequent year.

An individual should hire professional companies to conduct the audit as there are fines if a false report is submitted. The Department of Buildings is sure that the actions will be legal if carried out by qualified engineers and certified agents.

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