Home News NYC Local Law 97 compliance is complicated, pricey for co-op, condo owners

NYC Local Law 97 compliance is complicated, pricey for co-op, condo owners

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Building concerns

Co-operatives and parts of the condominium industry are under pressure to find an economically feasible way to keep homes affordable. According to Schreiber, the Bay Terrace Cooperative Section I in northeastern Queens is 25% of specific residential properties that exceed the 2024 limit and 76% that exceed the 2030 limit, according to the CBC.

If no changes are made to the property, Cooperative shareholders could be fined $ 45,000 a year from 2024, plus up to $ 194,000 in 2030, Schreiber said.

According to preliminary figures from the contractor, one of the particularly labor-intensive upgrades is to replace the electrical equipment of individual units to accommodate the upgrade, as well as to electrically heat pump the equipment in the six boiler rooms of the property. Is to replace it with. It costs about $ 2 million to $ 2.5 million.

According to Schreiber, it’s money that Bay Terrace doesn’t have, and if you have to pass it on to shareholders in the form of increased maintenance costs, the price (which tends to start at $ 550 to $ 700 per month) starts at 15%. May be 25 times higher%.

“Does it make sense to upgrade, take on really big debt and impose a significant increase in maintenance costs on shareholders?” Schreiber asked. “Or do you pay a fine? This is counterproductive to what Ground Method 97 is supposed to achieve.”

Robert Friedrich, President and CEO of Glen Oaks Village, another Queens middle-income cooperative, said he and other board members were 47 boilers in which Glen Oaks heats 134 two-story buildings in the complex. He said he was struggling with how to ultimately fund more efficient equipment in the room.

An energy consultant working with Glen Oaks estimates that the price tag is about $ 24 million, which can cost about $ 9,100 per household. If no other changes are made, the co-operative states that it may face a fine of $ 1 million or more per year by 2030.

Mary Ann Rothman, Managing Director of the New York Co-operative and Condominium Council, said the city was “humanely” to co-operative and condominium buildings to minimize the cost of direct relocation to residents. He said he needed to explore “all possible incentives.”

“Without better incentives, there is no place other than shareholders and unit owners,” Rothman said.

Rothman in two people 6 working groups Submitting feedback to a stakeholder advisory board that provides recommendations to the city on land method 97 sympathizes with how overwhelming the process can be to the owner. She says the law should be more encouraging and the focus should be on less punishment.

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