The Real Estate Board of New York to The New York City Department of Buildings re: Filing Requirements for Application to Adjust Emission Limits

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The Real Estate Board of New York (REBNY) is the City's leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople and other organizations and individuals active in New York City real estate. REBNY appreciates the opportunity to comment on proposed rules concerning applications for adjustments to emissions limits where a building is subject to another provision of law or affected by a physical condition that prevents compliance with the limits or where the building owner is experiencing financial constraints.

REBNY commends the Department for providing clarity on the process for applicants to apply for certain adjustments under Local Law 97 and for ensuring that buildings subject to Article 321 requirements are able to obtain such adjustments. The Department should work collaboratively with building owners to closely evaluate whether the building sector-specific standards established in the rule strike an appropriate balance so that buildings in legitimate financial hardship are able to access the adjustment. For non-residential buildings, the Department has proposed relying on an industry standard metric of a Debt Service Coverage Ratio (DSCR) of less than 1.15. This is an appropriate standard to use as buildings with DSCR below this level are typically thought to be in financial distress.

Thank you.