Of the many political challenges Mayor Zohran Mamdani faces, one of the thorniest is Local Law 97, New York City’s clean buildings law. Amid rising costs of living and skyrocketing energy bills, co-op owners across the city are daunted by the complexity and costs of compliance. I represent the Green Co-op Council, a group of co-op shareholders advocating for policies that can help improve homes, protect the environment, and save money for homeowners. Our members want the benefits of greener buildings but need help to do it. Instead of seeing LL97 as something to fight against, we see it as a reason to fight for more support that can improve overall livability and affordability for co-ops.
But the reality is that most co-ops are not on track to meet this climate mandate; according to the city, 69% of J-51 eligible properties currently exceed their 2030 LL97 emissions limits. In general, eligible condos and co-ops are further from emissions goals than other multifamily properties, and they are shouldering a massive burden.
The good news is that we have a tool that can help. In 2025, NYC released new rules for a revamped J-51 program, which allows eligible building owners to reduce their property taxes based on the cost of their capital improvements. The new program now covers certain energy efficiency retrofits and electrification projects—the exact kind of work essential to helping 200,000 eligible co-op owners comply with Local Law 97.
However, there’s a catch: eligible buildings only have until June 2026 to complete upgrades in order to take advantage of substantial savings. And because the tax abatement is applied after work is fully completed, co-op boards would need to have financed, contracted, and finished eligible upgrades on an impossibly short timeline. So unless J-51 is extended at least through 2030, very few eligible buildings will be able to afford energy efficiency and electrification improvements before the deadline, setting co-ops and condos back on meeting 2030 emissions targets.
Extending J-51 to 2035 is essential to making Local Law 97 work. The new J-51 covers up to 70% of the certified reasonable cost of eligible retrofit projects, paid out over 12-20 years through a property tax abatement. Eligible improvements include major capital repairs such as roof replacements, electrical system upgrades, boiler replacements, and other energy efficiency improvements that lower operating costs. This tax credit is especially useful for low- and moderate-income homeowners; co-ops and condos with an assessed value at or under $45,000 per unit are eligible, along with Mitchell-Lama and mutual redevelopment co-ops.
We were heartened to see Governor Kathy Hochul name reforming J-51 as a priority in her 2026 State of the State – and we are campaigning to see it passed as part of the state budget by April. We’re also advocating for expanded eligibility to cover more buildings, and reduced red tape and application fees to make it easier for homeowners to access this program.
For the sake of our climate, healthy homes, and the financial well-being of co-op shareholders across the city, the time to act is now. The governor and state legislature must extend and expand J-51 before it expires.
Priya Mulgaonkar is the director of the Green Co-op Council.
