Big Buildings May Have to Undergo Costly Retrofits

If Mayor Bill de Blasio has his way, owners of buildings larger than 25,000 square feet – including co-ops and condos – will be required to make costly retrofits to heating and cooling systems, roofs and windows in order to reach energy-efficiency targets by the year 2030, DNAinfo reports. 

"This change to our buildings is equivalent to taking 900,000 cars off the road in this city each year,” de Blasio said at a news conference. "It's clear that this is the motherlode and where we need to focus." 

If the City Council approves the requirements, they would apply to 14,500 private and municipal buildings, which the mayor's office says accounts for nearly a quarter of the city’s greenhouse emissions.

The Real Estate Board of New York called for “careful analysis” of the plan’s potential impact, Crain’s reports. De Blasio described their concerns as “nonsensical.” “Big landlords can handle this,” the mayor said. “They have the money – I assure you.” 

Upgrade costs would vary per property, but at a minimum, owners of 25,000-square-foot properties would have to cough up $15,000 in improvements. The city will offer low-interest loans to those who need a financial boost toward making improvements a reality. The city's Retrofit Accelerator program would offer guidance to boards and landlords on what repairs are appropriate for their buildings.

Those who do not comply with the city's mandates would face hefty annual penalties that increase with a building’s size and fossil fuel usage. For instance, the owner of a 1 million-square-foot building could pay $2 million in fines per year if they do not conform to the new standards by 2030. 

De Blasio reaffirmed the city’s commitment to the Paris climate accord by signing a June executive order days after President Donald Trump announced plans to withdraw the U.S. from the international agreement.