Approximately 85% of the one million cooperative and condominium apartments in New York City were constructed under either the 1938 or 1968 Building Codes. As such, these buildings, particularly those built before 1946, are not designed to comply with Local Law 97-2019. Ironically, these are the only buildings that face the full force of Local Law 97-2019.
NYCHA properties, HDFC/HPD and affordable housing, industrial facilities, low-rise buildings, single family homes, not-for-profit hospitals and churches are exempt. Commercial buildings have many accommodations including adjusted limits and more lenient caps. City-owned buildings, including city schools, are on a separate path, funded by the taxpayers. The only relief for the one million cooperative and condominium apartments and their 1.3 million owners-residents is purchasing carbon offsets.
Local Law 97-2019 was sold to the public as a “carbon cap.” Operationally, it is a “closed loop energy reuse” program. The law focuses on circular material lifecycles, waste heat recovery systems and electrification. However, the one million or so multiple family residential buildings built under the 1968 and 1938 building codes were designed and constructed with the expectation that there would direct fresh air for individual units through open windows. Therefore, these buildings do not have either the space or the duct work for a “closed loop energy reuse” system. Frequently, there is no place to put ductwork or other features of a closed loop energy reuse HVAC system. There are three common approaches to retrofitting older buildings for closed-loop energy reuse. At a cost of $17 per foot to $24 per foot, the first option is to install ground source closed-loop heat pumps. The costs noted do not include the need to re-pipe entire building distribution systems to deal with lower water temperatures.
Second, Wastewater Energy Transfer (WET)/Drain-Water Heat Recovery are being investigated. These WET systems capture heat from plumbing stacks. However, there are complications, as many older residential buildings have segmented stacks which increase the cost. Trying to reconfigure piping to allow for a central heat exchanger is a challenge. If physically feasible, these systems may pay for themselves in four to 10 years, but the physical layout of the property is crucial. The cost of these systems ranges from $150,000 to $500,000, assuming the physical layout is present.
Third are Energy Recovery Ventilator (ERV) / Heat Recovery Ventilator (HRV) systems. These are also expensive and not convenient. Before these systems can be made to work, the façade of the buildings must be made airtight. That means that the air intake that was once dependent on open windows must be replaced. Sealing the façades of these older buildings is expensive, as is installing duct work to provide for ventilation. While ERVs may be installed in individual apartments for an estimated $2,000 to $4,500, without the necessary duct work and sealed façade, the system is unworkable. Sealing facades may require window and balcony door replacements, which may range from $1,000 to $5,000 per window. Also, the apartments may not have ceiling height to accommodate the duct work.
The New York State Energy Research and Development Authority (NYSERDA) was formed in 1975 as a public benefit corporation. NYSERDA’s mission is to advance clean energy innovation, improve energy efficiency, use renewable energy sources and reduce reliance on fossil fuels. The owners of the one million or so co-op and condo units in New York City do not appear to be a priority for NYSERDA. In addition to research and development of clean energy programs, NYSERDA is focused on low and moderate-income households, businesses, educational institutions, local governments and labor organizations.
From the foregoing, it appears obvious that in the original debate on this proposition and the discussion of implementation, no realistic consideration was given to burdens on mid- and high-rise buildings constructed under either the 1938 or 1968 New York City Building Codes.
This column presents a general discussion. This column does not provide legal advice. Please consult your attorney for specific legal advice.
Carol A. Sigmond
Partner
Nossaman LLP
12 East 49th Street, 22nd Floor
New York, NY 10017
