- REAL ESTATE EDUCATION
- GIVING BACK
The Real Estate Board of New York to The Committee on Environmental Protection of the New York City Council Regarding the FY 2023 Preliminary Budget
March 23, 2022
The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY thanks the New York City Council Committee on Environmental Protection for the opportunity to provide testimony regarding the FY2023 preliminary budget, particularly regarding the funding we believe necessary for the implementation of Local Law 97-2019 (LL97).
For FY2023, REBNY encourages that additional funding be provided for the Department of Buildings to fund the full implementation of Local Law 97 of 2019 (LL97). Reaching our shared goals requires collective effort from both the public and private sectors to deal with the crisis at hand. REBNY supports City and State emissions reductions goals, and we are proud to represent members who are innovating in the fields of building construction and technology to reduce carbon footprints, increase energy efficiencies, and taking concrete steps to strengthen climate resilience. Adequate funding for the Office of Building Energy and Emissions Performance (OBEEP) at the Department of Buildings is critically important to realizing these goals. OBEEP was created to ensure implementation of LL97, including oversight of advisory boards currently facilitating the law’s technical details, and ultimately executing compliance as the law requires, beginning in 2024. As such, funding is required for the Office to ensure the successful implementation of the law.
REBNY along with other stakeholders including 32BJ, ConEd, the Regional Plan Association (RPA), the Sierra Club, Urban Green Council, the National Resources Defense Council (NRDC) and New York Communities for Change recently penned a letter to the City Council calling for OBEEP to be prioritized for funding. Specifically, funding is needed for:
- Analyses required under the law. Local Law 97 requires OBEEP to work with the advisory board to develop recommendations on a wide range of complex subjects, such as the economic impact and benefits of achieving the energy and emissions performance requirements. The Office needs staff and funding to deliver on that mandate.
- Rulemaking, compliance, and enforcement. Major details of the law must be settled in the next 10 months, and in less than two short years, the law’s carbon limits will take effect. A fully staffed OBEEP is vital to finalizing the law’s technical details and issuing rules that will ensure a smooth and timely rollout and effective compliance for up to 50,000 buildings.
- Outreach and education. OBEEP needs dedicated staff and funding to support a major market transition for tens of thousands of buildings. The office needs resources to help building owners understand their obligations and pathways to compliance, and to coordinate with existing support entities like the NYC Accelerator. This is particularly important for harder-to-reach sectors, like co-ops and smaller buildings with fewer resources.
REBNY joins this group of stakeholders in recommending that OBEEP staffing is increased by an additional 10 to 15 staff lines to carry out the activities described above. In addition, REBNY also shares the belief that funding should be secured to ensure the City’s own requirements under Local Law 97 are met, which include reducing emissions from government operations 40 percent by 2025 and 50 percent by 2030. Since DOB is projected in FY23 to generate $338.6 million in revenue from licensing, construction permitting, franchise fees and other sources,1 and with total expenditures projected to be $216.1 million, REBNY believes this would be funding well utilized.
We look forward to working with this committee along with the Housing and Buildings Committee in their capacity as overseers of DOB on these very important issues. Thank you for your consideration on these points.