Imperial Sanford Building Cuts Costs and Meets Local Law 97 with Renovations and Fuel Switch

Each building has its own path to complying with Local Law 97. When Evangelos Fantakos, the CEO of Highrise Property Management, took over the 120-unit Imperial Sanford Building in Flushing, Queens, it was well on its way, and he credits the  co-op’s partnership with HANAC, a citywide nonprofit with strong links in Queens, that helps source vendors and tap into incentive programs. The co-op was tackling envelope work, facade repairs, a window replacement project and a switch from soon-to-be-banned No. 4 fuel oil to cleaner No. 2 fuel oil. 

Sealing the Envelope 

Replacing all the co-op’s 700 windows will cost around $800,000. “The windows had not been changed in over 30 years, and it was definitely something that needed to be done in order to retain heat and cooling,” Fantakos says. With HANAC’s help, “we expect the rebates for the windows may be somewhere around 20% to 30% in funds coming back to the building,” he says. Some of the requirements for the incentive program are to hire unionized workers to meet prevailing wage requirements, facilitate inspections and provide data on energy use. In addition to the window replacement project, the building is also carrying out extensive facade work to correct safety issues identified in the latest facade  inspection cycle. “There’s a lot of brick pointing and window lintel replacement being done,” Fantakos says. 

Fuel Change

The current fuel costs at the co-op are extremely high, with the building spending approximately $12,000 to $14,000 every two weeks on No 4. fuel oil. The conversion to No. 2 oil, which is more cost-effective and burns more slowly, is expected to significantly reduce these costs.

“After the conversion and in addition to savings on replacing the windows, we’re looking at possibly spending somewhere around $4,000 to $6,000 a month on oil, which is a huge, huge reduction in cost,” Fantakos says. The fuel oil switch is mandated by the city and is being carried out by Approved Oil with an estimated cost of $20,000. Based on energy data from 2020, the Imperial Sanford was looking at annual Local Law 97 fines of $86,600 this year, rising to $177,000 in 2030. 

“The work being done will help reduce those penalties as we reduce our carbon footprint,” Fantakos says. Although it currently holds a C grade for energy use, the co-op aims to achieve a higher grade through these projects, potentially reaching a B or even an A. 

The expected savings from the fuel conversion alone could be as high as 40%, making a big dent in the building’s energy costs and compliance status. “Once the windows are replaced, the weather stripping is complete and we’re done with the conversion, we’re estimating that the co-ops is going to be saving somewhere between 65% and 70% on energy fuel usage and consumption,” Fantakos says. 

Footing the Bill

To pay for the work, the co-op has access to a line of credit. The building is also considering an assessment to replenish depleted reserve funds. In terms of takeaways for other boards, Fantakos recommends checking out your building on New York City Accelerator’s Building Snapshot to understand your Local Law 97 penalty exposure. New York City Accelerator is a city-sponsored organization that gives buildings free advice about energy retrofits and compliance. Tapping into incentives can also be a lifeline for buildings. “There’s a ton out there, all part of the Climate Mobilization Act,” Fantakos says. “Ask your managing agent what programs are available to help with compliance. Ask if a survey has been made of the building’s mechanics or a walk-through conducted to ensure you are not losing energy.” Equally important is knowing what mechanical systems are operating in the building and where you might be able to save money. “Do you have a dual-fuel system where you have oil and gas?” he says. “That alone is something that some boards may not even know.”