Affordable housing + Houses of worship have different Local Law 97 requirements than other buildings. The property and/or financing type used for your building will determine which of the three pathways the city has outlined for your property.
Note that buildings must be larger than 25,000 square feet to be subject to Local Law 97.
> 35% Rent Regulated Accommodations
Properties where greater than 35% of units are either rent-stabilized OR rent-controlled, includes:
Most NYC affordable housing will fall into this category, especially if financed through HPD
HUD Units
Properties with any HUD participating units, including but not limited to:
HDFC Co-Ops | Houses of Worship | NYCHA PACT
Rather than strict carbon emissions caps and penalties, this group of properties must complete a prescriptive list of measures OR be under the carbon emissions limits for 2030 by 2024. There are currently no future requirements for these properties.
The prescriptive list of measures are designed to be completed between major building renovation cycles and are focused on maximizing the efficiency of existing heating and domestic hot water equipment rather than replacing or installing new equipment.
< 35% Rent Regulated Accommodations
Same criteria as > 35% category above, but for properties with less than 35% rent regulated accommodations
This category was designed for properties with a majority of market-rate units, compared to Pathway 1. In many cases these are buildings with units that have transitioned from rent regulated to market rate.
This category of housing is offered the least flexibility of the three, and will be required to meet standard emission limits and penalties. Compliance is delayed two years, beginning in 2026 rather than 2024.
100% Mitchell Lama
Mitchell-Lama projects not participating in HUD programs
Article 2 and Article 4 covered in this category (under state Private Housing Finance Law). Mitchell Lama properties with ANY HUD units fall into Pathway 1
“All Other”
NYC LIHTC properties financed through HCR and with no HPD financing and/or rent stabilization requirement fall into this category.
These projects begin compliance in 2035, but at that time, must meet the emissions limits or face penalties in alignment with the general population of buildings in NYC.
Disclaimer: All pathway guidance provided by Bright Power is based on the best available information from NYC Department of Buildings (DOB) Local Law 97 guidance and the housing classifications provided by the client. Bright Power is not responsible for incorrect pathway determinations. Questions about pathway eligibility should be referred to DOB, the applicable affordable housing agency, and/or NYC Housing Partnership.