QUESTION
What evaluation process exists for local law 97 compliance in J51 tax abatement applications?
0:57:05
·
3 min
The council member inquires if there is an evaluation process for local law 97 compliance that is considered when buildings apply for the J51 tax abatement program. The deputy commissioner explains that while there is no explicit mandate, their preservation programs incorporate assessments and specifications aimed at improving energy efficiency and aligning with decarbonization goals.
- They have established assessment methodologies that factor in decarbonization needs for preservation projects.
- Program requirements prevent reimbursements for inefficient systems like single-pane windows.
- Specifications ensure replacements contribute to energy efficiency goals.
- Even if building owners don't prioritize decarbonization, the program is designed to facilitate it.
Lincoln Restler
0:57:05
And I really think that we've gotta I I actually just wonder if if maybe there's in reverse If anyone's applying for j 51, is there any evaluation for local law 97 compliance that's considered as a part of their 51 abatement application, their progress toward compliance, the any mandate or encouragement that they utilize the tax abatement to achieve those necessary goals.
0:57:35
How do we reverse it that way to ensure that any building that's coming to HPD HBD is saying back to them, we actually need you to do a local law 97 evaluation or assessment to make sure that you're doing everything you can to decarbonize because I agree this is one of the best tools we potentially have to decarbonize buildings that really don't have the resources to do it on their own and need our help to make it happen.
0:57:59
So is that something you all have considered?
0:58:00
Am I thinking about it the wrong way?
Kim Darga
0:58:02
No.
0:58:02
It's an interesting question, and that's actually what we do a lot in the other preservation programs that we administer.
0:58:08
Right?
0:58:08
We've establish an assessment methodology.
0:58:11
All buildings go through that assessment, and it doesn't take into account what is necessary from a a decarbonization perspective.
0:58:18
We have, like, high performance tracks we've laid out.
0:58:21
Our chief sustainability officer is amazing, and she's done a lot to move us in that direction.
Lincoln Restler
0:58:26
That's great.
Kim Darga
0:58:28
Here, I think it's not really a, like, a mandate.
0:58:32
Right?
0:58:32
A lot of these buildings are gonna be required to comply with local non incentive a lot or not.
0:58:37
Right?
0:58:37
So there are carve outs to local law 97 for certain types of buildings that don't have to comply or have a lot much longer period to comply.
0:58:46
So that may not be 1st and foremost.
0:58:48
But regardless, what we've done is say But
Lincoln Restler
0:58:51
even if you're going to have an immediate compliance requirement, we want them.
Kim Darga
0:58:54
Right.
0:58:54
Exactly.
0:58:55
And and that's why we have thought about the specifications, so you can't put a window in.
0:59:03
That's a single pane window.
Lincoln Restler
0:59:04
We're
Kim Darga
0:59:05
not going to reimburse for that.
0:59:06
Right?
0:59:07
We've thought about the specific specification that is required when you are replacing that system to make sure it's inefficiency.
0:59:14
System.
0:59:15
So even if a building owner is not thinking first and foremost about that, the program is designed to make that happen.
Lincoln Restler
0:59:24
Yeah.
0:59:24
I I hear you, and I just wonder how we can do more because we've gotta shift the market in New York City.
0:59:31
To expanding the number of buildings, especially larger buildings that are actually utilizing heat pumps, that are actually decarbonizing, that are changing the way that they operate, and the J51 incentives should be a tremendous opportunity for us to get a whole lot more buildings to actually take this leap and to make this happen and make it more affordable for all of us.
0:59:50
To be successful with local on 97 compliance.
0:59:53
So I just hope that we can continue to talk and explore together on how we can better If not mandate incentivize, encourage, facilitate local r ninety seven compliance through j 51, and frankly, I you know, and this may be a a less popular statement with some of my colleagues.
1:00:11
I actually think that for a local law J51 could be a mechanism to consider local law 97 compliance for more buildings and expanding the eligibility for local law 90 for j51 to help more buildings be able to affordably comply with local 197.
1:00:29
I think that's one of the things we have to seriously consider if there aren't other effective financial incentives being made available.
1:00:35
So but that's a conversation for another day, but I just think it's worth putting out there.
1:00:39
So thank you very much.