New york’s co-op buildings face costly green transition under landmark climate law

High above lower Manhattan, the rooftop of the International Tailoring Company Building showcases more than just sweeping views of East Village brownstones and historic music venues. The array of gleaming heat pumps and dry cooling systems represents a costly but necessary transformation happening across New York City as building owners scramble to comply with one of the nation’s most ambitious climate regulations.

Local Law 97, New York’s groundbreaking emissions mandate, requires large buildings to dramatically slash their greenhouse gas output in the coming years. The law targets buildings over 25,000 square feet—which account for roughly 40% of the city’s total carbon emissions—and imposes significant financial penalties for those that fail to meet increasingly strict limits. While the environmental goals are clear, the path forward has proven challenging for many property owners, particularly cooperative buildings where residents must collectively shoulder both the financial burden and technical complexity of major infrastructure overhauls.

For co-op buildings like the International Tailoring Company, the transition often means replacing decades-old heating and cooling systems with cleaner alternatives like heat pumps, upgrading insulation, and installing energy-efficient windows. These improvements can cost hundreds of thousands of dollars per building, forcing co-op boards to navigate difficult decisions about assessments, loans, and construction timelines. City leaders recognize these challenges and are working to provide resources, financing options, and technical assistance to help building owners make the green transition while keeping housing affordable for residents.

The stakes are high: buildings that fail to comply face penalties that could reach tens of thousands of dollars annually, making action not just an environmental imperative but an economic necessity.