New York City’s Department of Buildings is plowing through audits on the first round of filings under Local Law 97, and Commissioner Ahmed Tigani says the agency is leaning hard on getting buildings into compliance rather than racing to issue fines. The city reports that roughly nine in ten covered properties submitted reports in the inaugural year, and DOB has started mailing notices to late filers and lining up administrative hearings. Building owners are now juggling near-term reporting windows, offset options and mounting retrofit costs as the law tightens headed toward 2030.
In a Q&A with The Real Deal, Tigani said that "this year is a big year for us to get the data we need to figure out what the future looks like," adding that DOB staff are reaching out to owners who have not filed to "work with them on options." He stressed that the department’s priority is "compliance over penalties" and noted that Office of Administrative Trials and Hearings summonses will follow for persistent non-filers. The exchange makes clear that DOB intends to pair technical support with formal enforcement when outreach does not get a response.
Where the numbers stand
The Department of Buildings reports that about 93% of covered privately owned properties, representing roughly 91% of covered buildings citywide, submitted the required Local Law 97 reports. The agency also says that $1,460,048 from offset sales has been directed to energy-efficiency projects in affordable housing. According to DOB, roughly 28,000 reports are under audit and approximately 1,400 properties failed to file; those owners are receiving Notices of Deficiency while attorneys prepare OATH case filings for non-responders. The agency says it will publish audited, property-level compliance data on NYC Open Data later in the year, according to the Department of Buildings.
Offsets and financing
One compliance pathway is the Affordable Housing Reinvestment Fund (AHRF), which allows owners to purchase offset certificates to help bring a building into compliance. NYCEEC notes that each AHRF offset is priced at $268 per metric ton, the same price the city uses to calculate penalties. Proceeds are routed into HPD’s REDi retrofit programs to finance electrification, envelope upgrades and other projects in eligible affordable multifamily buildings. The structure is designed to direct penalty-scale money into tangible decarbonization work, as detailed by NYCEEC and HPD.
Help and the next reporting window
To make the next round less painful, the city has rolled out enhanced digital tools and a concierge-style Momentum service through the NYC Accelerator to help building operators plan retrofits, estimate penalties and track down financing. DOB has also reminded owners that the next annual compliance report, covering calendar-year 2025, opens May 1, 2026, with a grace period through June 30 and certain extension windows available, according to Smart Cities Dive and the Department of Buildings' announcement. The added advisory services are meant to push more owners toward earlier, less costly upgrades instead of scrambling at the last minute.
Legal implications
Owners who exceed their building's emissions cap face civil penalties calculated at $268 per ton above the limit, and failing to file a report after the grace period can trigger a late-filing fine of $0.50 per square foot per month. DOB rules also allow for mediated resolutions and mitigated penalties where owners can show demonstrable "good faith" efforts. Notices of Deficiency give owners an additional 60 days to file before DOB pursues adjudication, and more severe enforcement, including OATH proceedings, can follow for holdouts. For technical and legal details, building owners and boards should consult the Department of Buildings' Article 320 guidance and consider using city Accelerator and HPD REDi resources to preserve mitigation options.
