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Tag: LL84

  • How Local Law 84 Affects Your Property Taxes and What You Can Do About It

    How Local Law 84 Affects Your Property Taxes and What You Can Do About It

    Navigating the complexities of property ownership in New York City can often feel like a Herculean task, especially when it comes to understanding the implications of various building laws. Amongst these, Local Law 84 stands out as a crucial piece of legislation that property owners must be aware of due to its significant impact on property taxes. 

    I. Introduction

    A. Brief Introduction to Local Law 84

    Local Law 84, part of the Greener, Greater Buildings Plan enacted in 2009, requires property owners of buildings larger than 50,000 square feet to submit annual energy and water consumption reports. This benchmarking initiative is a stepping stone towards making New York City’s buildings more energy-efficient and is a critical effort in fighting climate change.

    B. Explanation of How It Affects Property Taxes

    At first glance, Local Law 84 might seem like just another regulatory hoop to jump through. However, it carries with it a ripple effect that can significantly influence your property’s financial liabilities in the form of taxes. Non-compliance is met with immediate penalties, but the nuances of the law have deeper implications on your tax bill.

    C. Significance of Understanding This Law for Property Owners

    This isn’t just about adhering to a law; it’s about recognizing an opportunity to transform your property into a sustainable and economically attractive asset. As a property owner, your grasp on Local Law 84 can position you to leverage potential tax benefits while contributing positively to the city’s environmental goals.

    II. Understanding Local Law 84 

    A. Detailed Description of Local Law 84

    Local Law 84 was conceived as a legislative response to the increasing concerns over climate change and the need for sustainable development. By mandating large buildings to track and report their energy and water use, the city aims to encourage the reduction of carbon emissions, a significant contributor to urban environmental problems. 

    What It Entails for Property Owners 

    Beginning in 2010, Local Law 84 required annual energy and water benchmarking reports for buildings over a certain size threshold. This report feeds into the Energy Star Portfolio Manager, a tool designed by the EPA to assess the energy performance of buildings nationwide. Failure to submit these reports results in fines, which increase with continued non-compliance.

    B. How Local Law 84 Affects Property Taxes

    Direct Impacts 

    The direct financial implications come in the form of penalties. As per the New York City Department of Buildings, these can accumulate over time, directly inflating the cost of property ownership.

    Indirect Impacts 

    On the other hand, market perceptions of energy-efficient buildings could elevate property values, thereby increasing tax liabilities. Conversely, buildings that perform poorly in benchmarking may be seen as less desirable, potentially decreasing their value.

     III. The Relationship between Local Law 84 and Property Taxes 

    A. Understanding Property Taxes

    How They Are Calculated 

    In New York City, property taxes are calculated by multiplying the assessed value of the property by the prevailing tax rate. The Department of Finance assesses property values, considering factors such as location, building size, construction type, and building usage.

    Different Factors That Affect Property Taxation 

    Value assessments are influenced by comparable sales, income and expense data for rental properties, and any construction or improvements made to the building. Each of these factors can sway the assessment, thereby impacting the tax.

    B. The Role of Local Law 84 in Property Taxation

    How Building Energy Efficiency Can Affect Tax Amounts 

    Properties that demonstrate high energy efficiency through their benchmarking reports may enjoy a higher market valuation due to the growing demand for sustainable living spaces. As a result, they could be subject to higher taxes consequent to their increased value.

     The Potential of Local Law 84 to Increase/Decrease Your Property Taxes 

    Energy efficiency isn’t just about reducing utility bills; it’s an investment that can potentially offer a return through increased property valuation and corresponding tax implications. 

    IV. What You Can Do About It

    A. Actions to Minimize Negative Impacts of Local Law 84 on Your Property Taxes

    1. Energy Compliance: Strengthening the energy efficiency of your property ensures not only compliance but opens up the potential for various tax incentive programs tailored for energy-conserving buildings.
    2. Energy Conservation Measures: By implementing energy-saving upgrades, the operational costs of your property can decrease. These conservation measures could range from installing LED lighting to upgrading HVAC systems.
    3. Tax Mitigation Strategies: Tax credits, rebates, and incentive programs for green buildings can significantly offset the initial cost of energy upgrades and reduce your overall taxation burden.

    B. Potential Benefits to Consider

    Over time, energy-efficient properties tend to have lower operational costs, contributing to a better bottom line. They also tend to retain their value better and appeal more to eco-conscious renters or buyers. 

    C. Expert Advice and Resources for More Help

    To navigate the complexities of Local Law 84 and its impact on your taxes, it’s wise to consult with experts in real estate law, tax professionals, and energy consultants who can provide tailored advice and guidance.

    VI. Conclusion

    We’ve traversed the essentials of Local Law 84, its origins, requirements, and how it intertwines with property tax calculations. We’ve also highlighted actionable strategies to mitigate any negative tax implications, including embracing energy compliance and conservation measures. The key takeaway for property owners is the importance of being proactive. By understanding Local Law 84, you can turn potential financial challenges into opportunities for both cost savings and contributing to a more sustainable city.

    Furthermore, the conversation about Local Law 84 is ongoing. Engaging with a community of property owners, sharing insights, and keeping abreast of new developments and incentives are vital steps in managing your property’s fiscal and environmental responsibilities. It’s through this knowledge-sharing that you can discover innovative ways to ensure that Local Law 84 works in your favor, both ecologically and economically.

    VertPro.com serves as a resourceful platform for property owners and managers seeking to enhance their buildings’ energy efficiency. The site offers a range of services, including Commercial Energy Audits, Benchmark Compliance consultancy, and a Construction Marketplace. At the heart of VertPro® is a suite of SaaS technology-based solutions designed to assist in navigating the complexities of Energy Benchmarking and Energy Audits/RCx Plus, while ensuring adherence to over 60 Energy Benchmarking and Energy Efficiency Laws across the country.

    For those looking to improve their property’s energy usage and operational value, VertPro.com provides a diverse array of tools and information. The site aims to facilitate a better understanding of energy efficiency practices and legislation, helping building owners and property managers make informed decisions about their energy strategies while complying with all energy ordinances and laws.

  • How Vert Energy Group can help you comply with Local Law 84

    How Vert Energy Group can help you comply with Local Law 84

    Are you looking for help to make sure your business is compliant with Local Law 84 (LL84)? Vert Energy Group has the expertise, skills, and resources to ensure that you are in compliance with this crucial legislation. With years of experience in energy efficiency consulting and project management, we understand how LL84 works and what it requires.

    We can work closely with you so that your business meets all the requirements, from building-wide analyses to designing custom solutions -rest assured, our team will walk you through every step! Moreover, we promise a professional but friendly attitude toward getting the job done properly and on time. Read on to learn more about how Vert Energy Group can assist your building in making sure it complies with LL84.

    What is Local Law 84?

    Local Law 84 (LL84) is a tool that can help energy and water-conscious organizations reduce their energy usage. LL84 requires the city’s largest businesses to track energy and water consumption in order to identify potential energy savings opportunities through an energy audit.

    These energy audits provide businesses with an opportunity to optimize energy usage, improve energy efficiency, and ultimately lower energy bills. Allowing companies to be more sustainable and resourceful with their energy solutions, LL84 helps create a brighter and greener future for us all.

    How to Comply with Local Law 84?

    Locals Law 84, otherwise known as the New York City energy conservation law, requires building owners of existing buildings to track energy consumption data and submit it in an energy benchmark report every other year. This helps to hold property owners accountable and encourages a decrease in energy usage within their respective properties.

    Property owners need to assess energy use according to the US Environmental Protection Agency’s Portfolio Manager tool, and from there take steps to optimize energy performance. Energy benchmarking easily aids building owners in making energy decisions and helps keep New York City green.

    How Vert Energy Group can help to comply with LL84

    New York City’s world-renowned Local Law 84 requires building owners to report their energy performance rate annually using a benchmarking tool, with the aim of reducing existing building emissions by 80% by 2050. This is no small feat, yet the Vert Energy Group can help make the journey easier. Our team of experts provide services such as analyzing energy usage data, making recommendations for savings and enhancements, and even help to implement energy efficiency solutions.

    With an established track record of success, the company can deploy a tailored strategy to move your buildings up to defined LL84 standards. From equipment replacements and tenant engagement programs to installing smart sensors and developing efficient operating protocols, the Vert Energy Group can give you key assistance at every step of the process.

    What are Requirements for Local Law 84?

    Local Law 84 is a critical existing energy law in the country. Requiring all existing buildings bigger than 50,000 square feet to report their energy and water usage data each year, it acts as an important measure for reducing emissions. While businesses have many options to choose from, most local authorities and general contractors chose to use Energy Star Portfolio Manager to meet Local Law 84 requirements.

    Moreover, buildings that are able to display significant reductions in their energy and water usage can even become Energy Star certified – demonstrating their commitment to sustainability as well as helping them save on operational costs. Meeting the requirements of Local Law 84 is essential for ensuring an efficient future while continuing to drive progress towards cleaner environment.

    Benefits of Local Law 84

    Here are the benefits of Local Law 84:

    Improved Building Energy Efficiency

    LL84 helps buildings to become more energy efficient due to the benchmarking and mandatory disclosure of building energy performance data. This encourages landlords and building owners to invest in energy efficiency upgrades that can save money over time and reduce their carbon footprint.

    Reduced Operating Costs

    By making buildings more energy efficient, LL84 can help reduce the operating costs of a building. This is especially important for multifamily buildings where tenants are often responsible for paying their own utilities and other operating costs.

    Increased Property Value

    Buildings that have improved their energy efficiency through LL84 will typically be worth more than those without the improvements. This is because energy efficient buildings tend to have lower operating costs and attract more tenants, leading to a higher potential return on investment.

    Improved Health and Safety

    LL84 encourages building owners and landlords to upgrade their buildings with the latest safety features like smoke detectors, fire alarms, and carbon monoxide detectors which can keep occupants safe.

    Increased Tenant Satisfaction

    Improved energy efficiency and added safety features can lead to happier tenants. This means a better living experience for those in the building, as well as greater tenant retention which can be beneficial for landlords and owners.

    Reduced Carbon Footprint

    By encouraging buildings to become more energy efficient, LL84 helps to reduce the overall carbon footprint of the city. This is especially important in urban areas, where buildings account for a significant portion of emissions.

    These are just a few of the benefits that LL84 can provide to both building owners and tenants alike. By taking measures to improve energy efficiency, landlords will be able to save money on operating costs while providing their tenants with a safer and more comfortable living environment. By reducing the city’s carbon footprint, LL84 can also help to contribute to a healthier planet. Overall, it is an important step forward in improving building performance and energy efficiency in the city.

    Step-By-Step Guide to Local Law 84

    Knowing exactly how to use Local Law 84 can be complicated. Fortunately, following these simple steps can help any organization easily adhere to energy performance monitoring and energy star certification standards. First, you’ll want to determine your facility’s baseline energy usage. This information is the basis for comparing energy efficiency improvements over time.

    Second, record energy use data at least annually. If auditing or submetering technology is available, it should be used in situations where energy consumption varies significantly between tenants or areas of the building. Third, calculate energy-use intensity that is consistent with energy star guidelines and track progress with a benchmarking energy envelope each year.

    Finally, publish energy performance information in annual reports or other public documents and submit results to energy star for energy star certification annually. By following these four steps, your organization can easily stay on top of Local Law 84 compliance and lead the way in creating a cleaner future.

    Things To Consider When Complying with LL84

    When complying with Local Law 84, the benchmarking requirements for energy and water consumption, there are a few things that should be considered.

    1. Get Professional Assessment: A professional assessment of your property’s Energy Star score is important in order to understand how much energy it uses and what improvements can be made to make it more efficient. This can help you identify areas where energy savings can be made, so that you meet or exceed the benchmarking requirements of Local Law 84.

    2. Establish A Baseline: Establishing a baseline for your property’s energy and water usage is also important in order to measure progress over time. By tracking these metrics, you can ensure that your property is complying with the requirements of Local Law 84.

    3. Investigate Potential Savings: Once a baseline has been established, it’s important to investigate potential energy and water savings through upgrades or changes in operations. These could include switching to LED lighting, installing insulation, retrofitting older appliances and fixtures, and more.

    4. Take Advantage of Incentives: There are a number of incentives available to help offset the cost of energy-efficiency improvements, such as tax credits and federal grants. Taking advantage of these incentives can help you meet your benchmarking requirements while also saving money in the long run.

    5. Monitor Usage: Finally, monitoring your energy and water usage on an ongoing basis is essential in order to ensure that you are meeting the requirements of Local Law 84. By regularly tracking your property’s consumption, you can make changes or improvements as needed to stay within the guidelines.

    These are just a few of the considerations when it comes to complying with Local Law 84’s benchmarking requirements. With a bit of planning and research, your property can become more efficient, saving you money in the long run.

    Conclusion

    Local Law 84 is a lot to take in, but thankfully, you don’t have to go through it alone. The team at vert energy group has the experience and knowledge needed to help you comply with the law and upgrade your buildings. We want to help you make your property more sustainable, so don’t hesitate to reach out to us for more information about how we can help you potentially save money and conserve energy.