Bill Under NYC’s Climate Mobilization Act Could Cause Residents to Flee

Can You Afford to Stay?

If you thought that the New York City real estate market would go unscathed in regards to the ‘Green New Deal,’ think again. Under the New York City’s Climate Mobilization Act, six bills were introduced and ultimately passed earlier this month. One of the six bills, which has sparked more debate than the others, now requires buildings over 25,000 square feet to make substantial improvements to reduce their carbon footprint by 40% by 2030 and 80% by 2050. Building owners will now have to make investments to reach energy efficiency and urge tenants to alter their usage by 2024, or risk being subject to hefty fines.

The debate regarding feasibility of this bill is ongoing. Many leaders in the energy industry deem it to be a pipe dream of sorts. They argue that even with technological investments and altered usage, only 10-20% of a building’s carbon footprint could be eliminated. On the other hand, Leaders of the Green Urban Council-an organization that works to make NYC buildings more sustainable- argues that the law could be easily implemented. The bill gives building owners the option to offset emissions with renewable energy credits and the ability to carbon trade between buildings. It also allows for residential buildings with at least one rent-stabilized unit, income-restricted co-ops, public housing, and city-owned buildings to be exempt from certain requirements.

One popular option among building owners is to make the switch to electric-powered heating systems. But if every building does so, we are presented with a larger issue. The reality is that New York City’s power grid cannot handle an influx of usage. The COO of Energy Watch LLC-a leader in energy analytics-states that to accommodate additional usage, the power grid would need major infrastructure upgrades. If this were to occur, everyone in the five boroughs should be prepared to pay more for electricity each month. This may cause many cash-strapped residents to flee New York City as they will no longer be able to afford the costs. Many building owners may not even be able to endure the additional financial burdens as the New York City residential market has been fluctuating considerably.

We must ask ourselves whether the pros outweigh the cons of this legislation. Is it too aggressive? That is to be determined. One component that we can all celebrate is the NYC Retrofit Accelerator-a new free program that provides information to aid building owners in making these energy efficient improvements. Nevertheless, the Green New Deal is bound to transform the economy and tackle the issue of climate change and oil obsolescence. More information can be found on their website, https://www.gp.org/green_new_deal.

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If you have any questions about the information above please feel free to contact me at your earliest convenience. Best regards,
Jeffrey A. Margolis

Founding Principal 
www.margolislawfirm.com
mail@margolislawfirm.com
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