Emily Myers in Bricks & Bucks
With the May 1 filing deadline for Local Law 97 looming, a coalition of co-op and condo representatives is urging the city council to reduce or waive late filing fees. Representatives of over 300,000 co-op shareholders and condo owners have signed a letter asking that “crushing” late fees — calculated at $.50 per square foot per month — be waived through the end of the year and scaled back. “Late filing fees must be amended to a reasonable and non-punitive amount,” says Julia Ann Engel, president of the Association of Riverdale Cooperatives and Condominiums and one of eight signatories.
Not only are co-op and condo boards concerned about the high rate at which the fines are calculated but there’s still no sign of the reporting portal. “It is a very tight window,” says Rebecca Poole, director of membership and communication at the Council of New York Cooperatives & Condominiums (CNYC), another signatory to the letter. A 60-day grace period extends the May 1 filing deadline to June 30 this year, but even so at a rate of $0.50 per square foot per month, the minimum penalty for late filings is $12,500 per month. “I think most people didn’t stop and think about what that rate actually meant,” Poole says.
It means this: A 200-unit co-op or condo of 200,000 square feet could face a monthly late fee of $100,000. “These penalties would necessitate crushing special assessments for shareholders and seniors,” says Bob Friedrich, board president of Glen Oaks Village, a 134-building co-op complex in Queens, who also put his name to the letter. The statute gave the rule-makers some leeway on fines for late filing, allowing for up to $.50 per square foot, and Department of Buildings (DOB) guidance set it at the highest level allowed.
Attorney Geoffrey Mazel, founding member at Hankin & Mazel and another signatory, points out the irony that the vast majority of buildings have done the work to ensure they are compliant with the emissions law. According to the research nonprofit Urban Green Council, 94% of the city’s multifamily buildings meet the 2024 limits. “A building that is in full compliance will still be subject to these draconian penalties,” Mazel says.
The DOB says the reporting portal will open in early March and they will be offering educational webinars to walk people through the process of submitting a report. The agency also points out the rules allow for an extension though Aug. 29 for those that need it. “We will give building owners every opportunity to reach out to us and get their reports in so building owners can avoid unnecessary penalties,” says DOB press secretary Andrew Rudansky. He points out the high late filing penalties were specifically included to prevent building owners from ignoring their responsibilities. Buildings with no intention of filing a report, he adds, “should expect penalties for non-compliance.”
The letter identifies various challenges to timely filing, including the need to use an accurate calculation of a building’s gross floor area, rather than the Department of Finance’s square footage data for a building. There’s also uncertainty about how estimated Con Edison meter readings will be handled by the DOB platform. “This is uncharted territory,” Mazel says. “Waiving late fees until the end of the year is a reasonable request.”
The DOB says it is confident in its ability to handle incoming emission compliance reports when the portal goes live. “We will monitor the rollout and respond as needed,” Rudansky says. In the meantime, Mazel's advice to boards is clear: “Do as much as you can as fast as you can.”