Local Law 97 Penalties by Building Type: Multifamily, Hospital and Office
By FeeWarden. Updated 2026-10-10. Figures come from the Local Law 97 text and the method we use.
Short answer: Local Law 97 charges every building $268 per ton over its limit, but the limit per square foot depends on use. The 2030 limits are about 40% to 74% lower than the 2024 to 2029 limits, and the penalty depends on how far a building's energy use is above its limit.
Limits per square foot for each building type
The limit is the building's floor area times the figure below. These are tCO2e per square foot per year.
| Building type | 2024–2029 | 2030–2034 | Drop |
|---|---|---|---|
| Multifamily (apartments, R-2) | 0.00675 | 0.00407 | 40% |
| Office (business, B) | 0.00846 | 0.00453 | 46% |
| Hospital (I-2) and similar | 0.02381 | 0.01193 | 50% |
All three types face a cut of about the same size: 40% to 50%. See the full guide for every occupancy group.
What that means in real energy use
Dividing a limit by an emissions factor gives the most energy a square foot can use before reaching it, if that were the building's only source. It is a way to compare, not a target, since real buildings mix fuels.
| Building type | Gas kBtu, 2024–2029 | Gas kBtu, 2030–2034 | kWh, 2024–2029 | kWh, 2030–2034 |
|---|---|---|---|---|
| Multifamily (apartments, R-2) | 127.1 | 76.6 | 23.4 | 28.1 |
| Office (business, B) | 159.3 | 85.3 | 29.3 | 31.2 |
| Hospital (I-2) and similar | 448.3 | 224.6 | 82.4 | 82.3 |
Read the first row as: an apartment building using only gas hits its 2024 limit at about 127 kBtu per square foot a year, and its 2030 limit at about 77. The electricity columns rise in 2030 because the electricity factor falls.
How many buildings of each type would owe
From the buildings we have estimated:
| Property type | Buildings | Owing from 2030 | Middle penalty a year |
|---|---|---|---|
| Multifamily Housing | 15,372 | 41% | $13,778 |
| Office | 1,104 | 14% | $17,756 |
| Hotel | 501 | 22% | $30,280 |
| Hospital (General Medical & Surgical) | 69 | 42% | $690,239 |
| Mixed Use Property | 2 | 0% | $0 |
Notes for each type
- Multifamily. Mostly a heating and hot water story. Gas and oil boilers drive emissions. Many rent-regulated buildings use the required-measures pathway instead.
- Office. Electricity often dominates, so the falling 2030 electricity factor helps. Mixed-use buildings add limits for each use.
- Hospital. Round-the-clock operation and process loads mean high energy use, and high limits. Steam and gas are common.
For the formula, read how the penalty is calculated.
Frequently asked questions
Which building type has the strictest Local Law 97 limit?
Among multifamily, office and hospital buildings, hospitals and similar group 6 uses have the highest limit per square foot, because they use more energy. Higher limits are not always easier to meet, since these buildings also use the most energy.
Do apartment buildings pay the same penalty as offices?
The rate is the same, $268 per ton over the limit. The limit per square foot and the typical energy use are different, so the totals differ.
Are rent-regulated apartment buildings covered?
Many follow a separate pathway of required measures instead of the emissions cap. DOB decides which pathway applies.
Why does this site estimate only some building types?
We estimate a building only when its listed uses map cleanly to a limit group. The method page lists the types covered today.
Sources
Calculate your own penalty or look up a building by address.