Most building upgrades aim to improve some aspect of the property, such as appearance or energy efficiency. However, there are cases where a specific update is required by New York law and is subject to a deadline.
New York building codes are periodically reviewed and updated, and a building that was originally built to the code may become noncompliant with a newer version. However, the new requirements are not retroactive in most cases – the building is still considered code compliant, based on the code version applicable during its construction.
Building upgrades typically fall into one of the following three scenarios:
- Optional updates.
- Mandatory upgrades only for major renovations and new construction.
- Mandatory improvements for all buildings covered by a law or code.
Identify the most promising upgrades for your building.
Optional building upgrades
As the name implies, optional upgrades are not forced on you by any law or code, but they can bring significant benefits to your building. Solar power systems are a prime example: No law in New York requires you to deploy a photovoltaic array, but you can see significant savings on your energy bill after installing one. California is the first state to make solar systems mandatory, requiring them in all new residential construction starting in 2020.
New York codes establish minimum performance requirements for energy efficiency and building controls. However, the latest technologies are far beyond the minimum code requirements. If you are considering a building upgrade that improves energy efficiency or other aspects of performance, you should look for measures with the highest financial return – the minimum performance specified in codes provides only a modest return.
Building certification programs like ENERGY STAR and LEED are also optional, but can significantly improve the public perception of your company:
- ENERGY STAR buildings outperform 75% of all similar buildings in the US.
- LEED-certified buildings gain approval after an extensive evaluation procedure in accordance with US Green Building Council guidelines.
New York law does not require building owners to obtain an ENERGY STAR certification, but the city will require the public display of energy scores starting in 2020. Even if you are not planning an ENERGY STAR certification, you should try to obtain a score above the median value. of 50.
Mandatory Upgrades in New Construction and Major Renovations
As mentioned above, a building that was originally designed to code may not meet the requirements of newer versions but is still considered compliant. However, the opposite does not apply: you cannot design new projects and renovations based on outdated building codes.
An example of this is the New York Energy Code – the most recent version was released in 2016 and the next version is planned for 2019. Suppose a development company has planned two identical buildings for 2018 and 2021:
- The first building may be designed in accordance with the 2016 New York Energy Code and will be considered compliant.
- However, the building planned for 2021 may need a design update once the 2019 New York Energy Code is published. If the specifications fall short of the new code requirements, the project will not be in compliance.
The same principle applies if you are planning a major renovation or extension to an existing property. New York codes typically establish a maximum project scale, and the newer requirements apply to building modifications above the limit. Minor repairs and modifications are normally not affected.
Mandatory improvements for all buildings covered by a law
New York local laws make certain upgrades mandatory for buildings that meet certain conditions, and this applies even when additions or renovations are not planned. Because these updates are required by law, they typically come with a deadline.
- Local Law 26 of 2004 mandates the installation of automatic sprinkler systems for all commercial buildings under its coverage, and the deadline is July 1, 2019.
- Local Law 88 of 2009 requires lighting upgrades for all buildings under its coverage, and new lighting systems must meet the New York Energy Code. The law also requires electrical submetering for tenant spaces above certain area limits. The deadline is June 1, 2025.
Failure to meet the deadline for a mandatory building upgrade carries penalties unless you can demonstrate that the upgrade was not possible due to factors beyond your control.
Recommendations
By getting a building assessment done by professional engineers, you can spot the most promising property upgrades. Mandatory upgrades specified by New York law are the most critical, and optional upgrades can then be prioritized based on their cost and benefit.
If your property is subject to both LL26 and LL88, consider scheduling both projects together. Sprinkler installations and lighting upgrades involve disruption to the ceiling structure, requiring the temporary removal of ceiling tiles and other components. With smart project scheduling, you can comply with both laws and dismantle the roof just once.
