New Compliance Data Shows Impact of Local Law 97 to Improve Sustainability In New York City

April 22, 2026

93% of Covered Properties Submitted Required Compliance Filings, $1,460,048 Directed Toward Energy Efficiency Projects in Affordable Housing Buildings

New York, NY - Buildings Commissioner Ahmed Tigani and Housing Commissioner Dina Levy announced today that approximately 93% of the covered privately owned properties, representing 91% of covered buildings, across the city have filed their Local Law 97 compliance reports, demonstrating significant participation from the city's real estate community with the city's buildings emissions reduction law. The program has also helped raised over $1,460,048 through the sale of carbon offset certificates, money which is being earmarked to help pay for approved decarbonization projects at affordable housing building across the five boroughs. Under this nation-leading climate initiative, property owners of larger buildings in New York City are required to submit reports to the city demonstrating that they are taking steps towards reducing the carbon emissions attributable to the operation of their buildings. Building owners can demonstrate compliance in part through the purchase of Offset certificates through the city's Affordable Housing Reinvestment Fund (AHRF). The high compliance rate for this inaugural reporting year shows that building owners across the five boroughs are taking this requirement seriously, and building by building, the city is becoming more sustainable and energy efficient, leading to reduced energy costs, improved air quality, and increased occupant comfort.

"Cutting building emissions is key to our efforts to build a more sustainable city. I'm encouraged to see widespread participation in the inaugural round of Local Law 97 filings, and look forward to further implementation as we work to create a more sustainable, affordable city," said Leila Bozorg, Deputy Mayor for Housing and Planning.

"The high compliance rate in this first round of annual reporting for Local Law 97 is more than a milestone; it's proof that coordinated climate action can work at scale in a city as large and complex as ours. This progress reflects the dedication of building owners who understand the consequences that inaction on climate change will have on our city, as well as the ingenuity of retrofit professionals advancing practical, data backed innovations to transform our building stock, alongside the unwavering efforts of the DOB's Sustainability Bureau in guiding this critical work," said Buildings Commissioner Tigani. "With the next reporting period opening in May, we have another opportunity to support even more buildings in meeting the law and to keep advancing toward the Mayor's vision for a more sustainable and resilient city for all."

"This new data shows that we can effectively tackle our massive housing shortage while also addressing the climate crisis," said Housing Preservation and Development Commissioner Levy. "By prioritizing sustainability, we can build more housing, protect our environment, and lower energy costs for New Yorkers. This policy is a win-win for New York City, and we are heartened to see so many building owners in compliance."

"Building owners across the five boroughs are taking action to address the impact that buildings have on emissions," said New York City Chief Climate Officer Louise Yeung. "While this is only the first step under Local Law 97, it's clear that with critical investments and support for the AHRF, New York City is moving in the right direction to make our city healthier, safer, and more efficient for all."

Under Local Law 97, most buildings in New York City larger than 25,000 gross square feet must meet increasingly stringent greenhouse gas emission limits or face penalties, with an aggressive target of a 40 percent reduction in emissions by 2030, and net-zero carbon neutrality for these buildings by 2050. These first Local Law 97 reports, indicating compliance in calendar year 2024, were due to the city on December 31, 2025. Emissions limits for buildings are primarily calculated by their size and occupancy. To meet these prescribed emission limits, buildings will be required to undergo energy efficiency retrofits and take measures to improve sustainable building operations. These retrofits, which range from replacements of old fossil fuel burning mechanical equipment, to improved insulation of a building's outer walls and windows, are reinvestments back into the owner's property, increasing not only energy efficiency but property value as well.

Staff from the DOB Sustainability Bureau are now in the process of auditing the filings received from approximately 28,000 buildings that were submitted to the Department by privately owned buildings that were required to submit reports this year, confirming that these buildings are under their stated emissions limit, or are otherwise fulfilling their legal obligations under the law through an available compliance pathway. DOB will be making additional compliance data public later this year on the NYC Open Data website when the auditing of these reports has concluded, providing the public with additional information about property-specific compliance information, and the overall impact Local Law 97 has on citywide emissions reduction.

Compliance Data by Borough

Compliance Data by Building Type

Local Law 97 includes an array of pathways that property owners can use to come into compliance with the law, each helping the city to achieve its goal of reducing total citywide emissions and helping to mitigate the damaging impact of climate change on our coastal city. One of the available compliance pathways open to covered building owners is carbon offsets available for purchase through the city's Affordable Housing Reinvestment Fund (AHRF).

The AHRF was set up in accordance with the law to assist covered building owners meet their obligations, while contributing to carbon emission reduction with tangible projects here in the five boroughs. Offset certificates that are obtained through AHRF cost $268 per ton of carbon emissions, the same cost as the penalty imposed for not meeting Local Law 97 emissions limits. The money collected by the city through the sale of these certificates is earmarked for efficiency improvements at residential buildings with rent regulated apartments across New York City. To improve transparency on this new offset market, the city is releasing on online tracker, which shows which buildings have purchased a carbon offset certificates, and which buildings have received that money through the program.

AHRF money flows through HPD's Resilient & Equitable Decarbonization Initiative (REDi), a joint HPD-NSYERDA initiative which has a robust pipeline of affordable housing projects that are ready and able to implement beneficial electrification projects. New York City Energy Efficiency Corporation (NYCEEC) administers this process, acting as the city's official administrator of the AHRF. This pipeline keeps the benefits of reducing greenhouse gas emissions local, while supporting building owners who otherwise would not be able to afford to convert off of expensive and dirty fossil fuels. Of the $1,460,048, all of the money has been either disbursed to qualifying REDi projects, or is soon to be disbursed.

A total of approximately 1,400 properties in the city that were required to submit a report to the city have failed to do so and are now facing DOB enforcement actions. Notices of Deficiency (NODs) issued by the Department have started to be mailed to these non-compliant buildings, with information about the penalties these owners now face, giving them an additional 60 days to file these late reports to potentially avoid these penalties. Attorneys in DOB's Sustainability team are currently preparing case filings at the Office of Administrative Trials and Hearings (OATH) for those properties that remain out of compliance with the law. Buildings will be assessed penalties following these OATH proceedings.

Local Law 97 was originally signed into law in 2019 and remains one of the most ambitious municipal-level initiatives anywhere in the country to reduce greenhouse gas emissions attributable from buildings. Since the passage of the law, DOB has worked closely with the Mayor's Office of Climate and Environmental Justice (MOCEJ) on a smart approach to implementation, that supports building owners in both the initial compliance reporting year and subsequent years. Looking forward, covered buildings subject to Local Law 97 will be required to submit their calendar year 2025 compliance reports to the city by May 1st, 2026, and May 1^st each year thereafter, with a sixty-day grace period through June 30^th. Additionally, the law provides that buildings owners can apply for an extension to submit their reports through August 29th.

"NYCEEC is pleased to help develop and to administer the AHRF program, and to support New York City in advancing its environmental goals" said Curtis Probst, CEO of NYCEEC.

"It's very encouraging to see the high compliance rate with Local Law 97 and early success of the Affordable Housing Reinvestment Fund," said Donna De Costanzo, Northeast Regional Director, Climate & Energy, Natural Resources Defense Council. "Directing compliance funds toward energy efficiency upgrades of affordable housing provides flexibility to building owners, while supplying much-needed investment in those buildings that need it most. This important and innovative program has already been off to a great start."

"It's great to see such a high level of compliance for Local Law 97," said Dr. Anhthu Hoang, Deputy Director & General Counsel at WE ACT for Environmental Justice. "This shows that property owners across the city are committed to reducing air pollution and helping address climate change."

"Local Law 97 is mobilizing the market toward efficient, healthy and resilient buildings," said Chris Halfnight, incoming CEO of Urban Green Council. "With 93% of owners filing in year one and nearly $1.5 million invested in decarbonizing affordable housing, today's announcement is a major milestone for NYC's nation-leading climate law and a credit to the DOB team guiding owners through the first year of compliance."

"The results released today by DOB and the City are a welcome reminder that creative approaches to climate problems can lead to incredible solutions," said Dale Bryk, Senior Fellow for Energy and Environment at Regional Plan Association. "With a 93% rate and millions raised for electrification projects for low-income New Yorkers, it's proof that we can think big, support our neighbors, and create a healthier, cleaner, comfortable New York. RPA celebrates the results of Local Law 97 and looks forward to its continued success."

###