New York Construction Report staff writer
New funding is available to help New York City building owners meet emissions reduction requirements under Local Law 97. The GreenHOUSE Fund will provide critical resources for rent-regulated apartment buildings and low-income co-ops, enabling them to afford necessary decarbonization projects.
Local Law 97, enacted by the New York City Council in 2019, establishes strict emissions limits for large buildings while allowing for the purchase of carbon offset certificates to cover up to 10 percent of those limits.
The GreenHOUSE Fund will utilize proceeds from these offset purchases to finance electrification and decarbonization projects for affordable housing developments that might otherwise lack the resources. This initiative is expected to improve air quality in disadvantaged communities and help the city meet its emissions reduction and equity goals.
In addition to the fund, Mayor Eric Adams has urged the City Council to enact the J-51 tax incentive, which would allow co-op and condo owners to use it for Local Law 97 compliance costs. This approach aims to significantly aid low- and moderate-income multifamily buildings in affording the necessary emission reduction projects.
“Our buildings produce 70 percent of New York City’s emissions,” said Mayor Eric Adams. “That’s why we’re laser-focused on helping them electrify and decarbonize. The GreenHOUSE Fund is designed to make it more affordable for working-class New Yorkers to go green and save green.
“We’re making sure that we don’t leave anyone behind as we build a greener, cleaner city for working-class New Yorkers.”
Deputy Mayor for Operations Meera Joshi emphasized the importance of affordability in addressing climate issues. “With the GreenHOUSE program, we are making real inroads on the affordability challenge of emissions reduction mandates,” she said. “The true renewable resources in New York are our collaboration and innovation.”
The GreenHOUSE Fund will flow through the Resilient and Equitable Decarbonization Initiative, a joint effort between the NYC Department of Housing Preservation and Development and the New York State Energy Research and Development Authority. This initiative has already identified numerous affordable housing locations ready for retrofitting.
The Department of Buildings plans to propose a rule allowing property owners to purchase offset certificates at $268 per ton of carbon emissions, which is equivalent to the penalties for non-compliance. These funds will support efficiency improvements in affordable housing developments.
“Responding to the climate crisis requires all of us; participation must be within everyone’s financial reach,” said Deputy Mayor for Operations Meera Joshi. “With the GreenHOUSE program, we are making real inroads on the affordability challenge of emissions reduction mandates — not with federal underwriting or an expensive, taxpayer-funded program, but simply by helping one another, an idea as clever as it is simple. The true renewable resources in New York are our collaboration and innovation, and I look forward to this scaling to make New York City the greenest big city in America.”
“Most building stakeholders will be able to comply in this first compliance period, but for those who are just slightly over their limits, the offsets will provide a significant benefit to help them avoid penalties, support carbon reduction in affordable housing, and allow them to continue planning for deeper reductions for 2030 and beyond,” said New York City Department of Environmental Protection Commissioner Rohit T. Aggarwala. “This fund is another resource the Adams administration is providing to help buildings achieve Local Law 97 mobilization under the city’s world-leading Climate Mobilization Act.”
Building owners needing guidance on compliance can reach out to the NYC Accelerator, a program providing technical assistance and connecting them with sustainability professionals.
