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How Local Law 97 Affects 2–4 Family Properties in NYC

Fri, 06 Feb 2026 00:52:40 GMT

Key Takeaways: Local Law 97 & Small Residential Buildings (Article 321)

• Most 2–4 family properties in NYC are NOT subject to Local Law 97

• Buildings under 25,000 square feet are exempt from emissions caps, penalties, and reporting

• Article 321 explicitly excludes small residential buildings from compliance requirements

• No carbon limits, benchmarking, or annual filings apply to these properties

• Owners of 2–4 family homes do not need to retrofit to meet Local Law 97

• “Prescriptive Energy Conservation Measures” are not mandatory for exempt buildings

• Measures like pipe insulation or heat timers are optional, not legally required

• The law primarily targets large apartment buildings and commercial properties

• Small landlords face no fines now or in future compliance periods

• Energy upgrades may still reduce operating costs, but are voluntary

• Local Law 97 is often misunderstood because most coverage focuses on skyscrapers

• For typical 2–4 family owners, Local Law 97 is a non-issue from a legal standpoint

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Understanding Local Law 97 Beyond the Headlines

Local Law 97 was enacted to reduce carbon emissions from New York City’s largest buildings, which account for the majority of energy use citywide. As a result, most media coverage focuses on high-rise apartments and commercial towers—leaving small property owners confused about whether the law applies to them.

For owners of 2–4 family homes, the answer is usually simple: it doesn’t.

Under Article 321, residential buildings under 25,000 square feet are exempt from Local Law 97’s emissions limits, reporting obligations, and financial penalties. This exemption covers the vast majority of 2–4 family properties in NYC.

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What Are “Prescriptive Energy Conservation Measures”?

Prescriptive Energy Conservation Measures are a compliance option for covered buildings, allowing them to meet the law through basic energy upgrades instead of calculating emissions.

Common examples include:

• Insulating exposed hot water or steam pipes

• Installing boiler heat timers or outdoor temperature controls

• Using LED lighting and occupancy sensors in common areas

• Implementing temperature setbacks during low-use hours

These measures are often mentioned in Local Law 97 discussions—but they are not requirements for exempt buildings.

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Do 2–4 Family Owners Need to Install These Measures?

No.

If your building is under 25,000 square feet, these upgrades are not required, not inspected, and not reported to the city.

Some owners still choose to install them to reduce fuel costs or improve comfort, but that decision is purely optional.

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Bottom Line for Small Property Owners

Local Law 97 was not designed with small residential landlords in mind. For most 2–4 family properties, it creates no legal obligations, no penalties, and no compliance burden.

Understanding this distinction can save owners unnecessary stress—and unnecessary spending.

Is Proper Staffing the Key to a Successful Building Management?

Fri, 02 Feb 2024 22:31:00 GMT

Property management can be a complicated song and dance which always requires a fine attention to detail. One facet that does not receive enough attention is the staffing strategy. Sure, it is easy to say “well, I have a Super,” or “I have someone who takes out the trash,” but having the right staff in place will allow you to bring your property to the next level by helping to create the best experience possible for your residents. The staff is truly the heartbeat of your property.

Imagine: a dedicated maintenance team who will catch a problem before a resident may even see it, an on-site property manager coordinating the flow of a seamless daily operation, and a vigilant lobby staff making sure all guests are announced and all packages received . It’s not just about addressing problems; it's about creating an environment where problems are preemptively identified, swiftly resolved, and a resident's only worry is to figure out what they want for dinner that night.

When an adequate staffing structure is implemented into a building, the space will thrive. It's the difference between a property that is simply available, and one that people truly want to live in. The biggest question on every property manager's or owner’s mind is, "How do I figure out the perfect staffing structure for my building?"

Start by looking at the unique qualities of your property. Each building has its own personality and quirks. Make sure that your staffing structure aligns with these characteristics. Considerations include but are not limited to:

Engaging and understanding your residents is another key aspect. In some buildings, a resident might expect “white glove” service with a 24-hour doorman and security staff, whereas in other buildings a video intercom system may suffice. Having an open line of communication with your residents is also a proactive way of confirming if any change is necessary. If you are noticing a consistent comment, good or bad, then you can be proactive in your approach to adjusting your staffing needs.

It is also important to stay flexible. With property management, the world is ever-changing. New technologies may help to reduce the number of staff, or you may want to implement new trends that require additional staff. Make sure your strategy is constantly reassessed and adjusted based on these changes. Embracing innovation can also lead to more satisfied residents, which can be a nice bonus for your bottom line.

Just like everything else in a building, no one solution is forever, and sometimes you may have to go through a trial-and-error period to find the right one. This can be stressful but will help to create an environment that residents want to call home for a long time to come.

At Kahana, we would be happy to assist! Contact us below and someone from our team will reach out ASAP to help evaluate your building's needs.

Maximizing Your Building's Potential: The Importance of Budgeting

Wed, 31 Jan 2024 23:20:00 GMT

Creating and maintaining a proper budget is critical for success when managing a property. Having a well-thought-out budget provides you with a financial roadmap that will help to efficiently allocate your resources, resulting in the development of more accurate timelines for projects, a better handle on a buildings overall health, and assist with peak day-to-day performance. When you create a budget, you will break up your general ledger into specific categories or classifications – based on expenses and income – and monitor those categories throughout the fiscal year. A few things you want to focus on when budgeting are the benefits of Accruals , Reclasses , and Variances .

What are Accruals?

Accruals allow for a property owner to have a forward-thinking strategy when it comes to financial planning and management. Instead of realizing expenses when paid, they are accounted for when they incur (e.g., when a contractor performs a repair). By accounting for money that will be paid, you are able to have a more precise representation of a building's financial health. This allows you to make informed decisions as to whether you need to cut any upcoming projects, add any new projects, or if you may need an injection of cash. Accounting this way ensures that you are as prepared as possible for any financial surprises.

Why are Reclasses important?

While sometimes tedious, reclassifying items in a budget is extremely important for the accuracy of revenue and expenses. Reclasses not only help to keep track of what is happening in the building, but also allows for a property owner to correctly budget year over year. When you realize an expense, it should be classified on your general ledger. Sometimes, these items may be classified incorrectly, or perhaps a different category might suit the repair better. For example, if your budget has separate line items for apartment plumbing repairs and building plumbing repairs, a leak could inadvertently be misclassified on the ledger. When you Reclass correctly, you have an exact cost basis for a building repair. This creates a situation where you can analyze all expenses and accurately align the budget with financial realities; it will also create a starting point for the following year’s budget. Reclassifying expenses or revenues may also be necessary due to unforeseen circumstances, changes in project scope, or adjustments in market conditions. Regularly reviewing and updating reclasses ensures that the budget remains a dynamic and accurate tool for financial management, helping organizations adapt to changing circumstances and avoid potential discrepancies.

Who cares about Variances?

We instantly ask “why” when something goes over budget, but coming in under budget oftentimes receives no particular attention. This should not be the case. Monitoring variances is quite possibly the most crucial element for evaluating the income and expenses of a property against its budget. Variances are the difference between budgeted or forecasted, and actual costs or income, giving you a detailed analysis of financial performance. Favorable variances mean that costs are lower than expected, while unfavorable variances show that costs may have exceeded projections. Identifying the root cause of a variance (usually in each accounting period) enables building managers to promptly put corrective measures in place. Variance reports contain a wealth of knowledge that help property owners by indicating upgrades that may be needed, or by providing a clear representation of the ROI for a completed project. Variances will also help to refine future budgets by optimizing resource allocation and enhancing overall financial control.

Budgeting seems like an extremely tough task looking in – and it can be, at first – but with the above measures considered, you will find that each budget becomes easier to create and work with as they become more accurate over time. When you implement a comprehensive budget into your management routine, you will find the ability to control costs, make sure funds are allocated correctly, mitigate risk, and make informed decisions resulting in a more financially sustainable building.

If you would like a consultation for management, please click the below and fill out the form. Someone from our team will reach out ASAP.

How Effective Preventative Maintenance Can Boost Your Bottom Line

Thu, 25 Jan 2024 05:00:00 GMT

Maintaining a building is the most important part of property oversight. Whether you are a building owner, manager, or an individual unit owner, you can never escape the ongoing cycle of maintenance. There is definitely temptation to cut costs and say “I’ll deal with it when it becomes a problem”, however, consistent, preventative maintenance can save the “problem” from occurring in the first place. Being proactive and having the right maintenance plan in place may not only extend the lifespan of a building but can also significantly outweigh the upfront expenses of projects.

How can I do this while still saving money?

But won’t I need to replace these systems anyway?

This all seems great, but how can spending more money grow my profits?

Can I save money anywhere else?

Energy efficiency

When preventative maintenance becomes a daily part of a buildings upkeep, building systems will be running at peak efficiency and you will find that structures such as windows and doors will be better sealed resulting in a more insulated building. This will result in reduced energy consumption, ultimately lowering your utility bill.

Compliance with city and state regulations

If you are constantly inspecting and maintaining your building, this will include the implementation and adherence to any new state or city requirements for a property. Making sure you are in compliance will prevent any violations from being filed and save you money on any potential fines. If fined, you will have to pay to correct the violation anyway, so why not be proactive and save the fine?

Potential tenant concession savings

Should a building experience numerous and ongoing system failures, tenants might lose patience. If this occurs, you may find yourself offering compensation to tenants to prevent things like tenants moving out, or worse, a lawsuit. Compensation could be a one-time concession for the loss of use of a system or overall inconvenience or could be offered on a renewal as a lower rent, month free, or more.

There is a reason that the most successful properties remain consistent with their preventative maintenance programs. The reason is it works!

As you can see, the pros to spending the up-front cost, significantly outweigh any cons. Yes, it is a higher cost monthly, but the costs can be offset through other savings, and it can help to build the value of an asset. It is not just an expense, but an investment in the longevity, efficiency, and overall success of a building.

If you would like to learn more about how we can assist with maximizing your property, click on the below and one of our associates will contact you as soon as possible.

Unlocking Success: The Key Benefits of Using a Property Management Company

Thu, 18 Jan 2024 01:42:00 GMT

Owning and managing rental properties can be a lucrative venture but can also come with its own set of challenges. It can be commonplace for property owners to find themselves juggling multiple responsibilities, sometimes along with having another full-time job. While the idea of saving money from not paying a management company can be very appealing, it is extremely important to consider the level of involvement needed from you to make the decision as to what is best for your property.

While tenant relations and property maintenance are often the main items an owner will think about when it comes to self-managing, compliance, legal, and accounting are examples of other crucial components. Keeping up with all of these tasks can be worrisome if you are not a person experienced in them.

Before making the decision if a property management company is right for you, it is important to look at the following key points.

1. Tenant Retention and Rent Maximization.

2. Asset management and maintenance.

3. Overall ROI goals.

As you can see, the specialized knowledge needed to run a successful property can be a daunting task, but is doable if you are up to the challenge or have the experience. If not, it is important to remember that property management companies bring industry expertise to the table. They are constantly staying up to date on local and national trends, legal requirements, and best practices. This knowledge is invaluable in making informed decisions that protect your interests and enhance the profitability of your property. It becomes more than just paying a monthly fee.

What is the right decision for you?

New Brooklyn condos cooled, but Manhattan held steady.

Sun, 19 Feb 2023 16:16:00 GMT

The number of new Manhattan condominiums sold in January declined to match the average monthly sales between 2015 and 2020. Although there was a drop in activity overall in recent months from the pandemic highs, some of the city's trophy projects rebounded with high-dollar deals.

Sponsors put 104 units into contract in January, which was nearly equivalent to December's total, indicating a market rebound from a low in October. Extell Development led luxury deals, with Manhattan taking the majority of contracts worth $4 million or more.

According to Marketproof CEO Kael Goodman, high prices left room for negotiation, with a 14.9% difference between asking and closing prices. Median prices for new condos in Manhattan rose 2% above pre-pandemic levels to $1,994 per square foot, while overall median prices fell 5% to $1.99 million.

In contrast, Brooklyn saw a 13% increase in asking prices but below pre-pandemic average contract signings. "Brooklyn is cooling," according to Goodman, "the big stuff is largely sold."

New condos in Queens generated less revenue than the pre-pandemic average, indicating weakened demand in the borough. However, some developments are still selling well, such as ZD Jasper's ground-up project at 45-30 Pearson Street in Long Island City, where nearly 15% of units have been sold.

Court finds Albany’s Good Cause Eviction Law to be invalid

Wed, 15 Feb 2023 22:19:00 GMT

The Good Cause Eviction law of the City of Albany (Local Law F of 2021) was in direct conflict with and preempted by New York State law, as ruled by the Supreme Court of Albany County. The plaintiffs argued that the law was attempting to regulate rental rates and tenant evictions at the local level, which was not allowed by State law. The court found that Local Law F was in direct conflict with New York State's Real Property Law (RPL) and Real Property Actions and Proceedings Law (RPAPL). The court emphasized that the RPAPL did not require a landlord to show "good cause" to evict a tenant after a lease had expired. The court also stated that Local Law F added "good cause" requirements that did not exist under New York State law and restricted a landlord's right to evict a tenant even when there was no written lease. The court also found that the law was in direct conflict with RPL Section 228, which permitted a landlord to end a month-to-month tenancy on 30 days' notice to the tenant without demonstrating good cause. Finally, the court mentioned that Section 226-c allowed a landlord to raise rents by 5 percent or more provided that the tenant was given adequate written notice at the time of renewal for those with written leases and upon sufficient notice for those under month-to-month tenancies.

The court ultimately held that since Sections 30-327 and 30-328 of Local Law F “altered substantive provisions and procedures of existing state law by imposing limitations and prerequisites to the commencement of an eviction proceeding that are not required under state law,” they were deemed null and void. The court further held that since the remaining provisions of Local Law F were enacted solely to support Sections 30-327 and 30-328, the

entire law was held to be invalid.

DHCR issues updated lease renewal form

Wed, 15 Feb 2023 21:38:00 GMT

The NYC Renewal Lease Form (RTP-8) has been updated by DHCR to include the guidelines specified in Rent Guidelines Board Order #54. The updated order allows for a 3.25% increase on one-year renewal leases and a 5% increase on two-year renewal leases. This latest DHCR Renewal Lease Form must be used for all renewal leases from now on. You can find the form at https://hcr.ny.gov/system/files/documents/2022/07/rtp-8-07-2022-fillable.pdf.

The lease renewal process for rent-stabilized apartments requires landlords to offer renewal leases for one or two years at a rate determined by the Rent Guidelines Board. The offer must be made on a DHCR Renewal Lease Form (RTP-8) through electronic means, mail, or personal delivery, between 150 and 90 days before the existing lease expires. If the tenant does not respond within 60 days, the landlord can refuse to renew the lease and start eviction proceedings. Once the tenant signs and returns the lease form, the landlord must provide a fully signed copy within 30 days. The lease and any rent increase cannot start retroactively, and the renewal lease must maintain the same terms as the expiring lease unless required by law. Additionally, the New York City Lease Rider For Rent Stabilized Tenants, which explains the computation of the proposed rent and the rights and obligations of tenants and landlords under the Rent Stabilization Law, must be attached to the renewal lease form.