Associate Attorney
As 2025 approaches, cooperative, condominium, and HOA board members in New York City, Brooklyn, and Queens face a pivotal year of regulatory shifts.
New laws and imminent deadlines in 2025 require careful attention and proactive planning from NYC co-op, condo, and HOA boards.
From the evolving Corporate Transparency Act to local law compliance, strategic action is essential to ensure smooth operations and avoid substantial penalties.
Woods Lonergan PLLC’s NYC board governance attorneys, serve as general counsel to numerous cooperative and condominium boards throughout the New York metropolitan area.
Our in-depth understanding of the unique challenges facing co-ops, condos, and HOAs shapes our approach to guiding clients through these intricate compliance requirements.
We provide clear, actionable advice to help boards navigate the evolving regulatory environment. For personalized guidance on compliance or any matters related to cooperative and condominium law, please contact our cooperative and condominium lawyers online or by calling (212) 684-2500.
This comprehensive guide outlines critical regulations and local laws impacting cooperative and condo board governance in New York City for 2025. Board members can utilize this as an essential checklist to meet compliance requirements and strengthen their New York co-op or condo board’s leadership.
Critical NYC Residential Board Governance Compliance Deadlines for 2025
Building Policies and Board Governance
1. Corporate Transparency Act (CTA) Update for NYC Co-op and Condo Boards
On December 3, 2024, a nationwide preliminary injunction suspended enforcement of the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements of January 1, 2025.
Key points:
- CTA enforcement temporarily halted nationwide. All reporting companies currently relieved of filing obligations
- The U.S. Department of Justice is expected to appeal, with deadlines being reinstated with little notice
- While enforcement is temporarily halted, boards should remain vigilant and prepared for potential reinstatement of reporting requirements. Woods Lonergan is actively monitoring developments
While the CTA’s enforcement remains in flux, recent developments continue to impact NYC co-op and condo boards. For the latest insights on how these changes affect board governance, see our coverage of Managing Partner Jim Woods’ commentary in the Brick Underground article, “NYC Co-op and Condo Boards Catch a Break as Corporate Transparency Act Faces Legal Limbo.” This article offers valuable guidance for boards navigating this period of uncertainty. As the situation evolves, Woods Lonergan PLLC remains committed to providing timely updates and expert advice to help your board make informed governance decisions regarding CTA compliance.
2. BCL 727: Annual Conflict of Interest Reporting for New York Co-op Boards
Annual Reporting Reminder: In an effort to create greater transparency, as of January 1, 2018, § 727 of the BCL requires boards to submit an annual report to shareholders detailing all contracts made, entered into, or voted on by the board.
Key points:
- Co-op board members must annually disclose any business dealings with the building
- Annual disclosure of board members’ business dealings with the building is crucial for maintaining transparency and preventing conflicts of interest.
Deadline: Annually, typically aligned with the fiscal year-end
Penalty: While not specified in the law, non-compliance could lead to shareholder lawsuits or regulatory scrutiny.
3. NYC Local Law 147: Implementing Smoking Policies in Co-ops and Condos
As a reminder, New York City’s Local Law 147 requires all residential buildings with three or more units, including cooperatives and condominiums, to have a written smoking policy in place.
Key points:
- Buildings must have a clear smoking policy for all areas of their communities.
- Management must provide the policy to residents and include it when selling units. Policy must be distributed and implemented on an ongoing basis.
Ensure your building has a clear, well-communicated smoking policy to protect residents and avoid non-compliance penalties.
Penalty: Up to $2,000 for non-compliance
Energy Efficiency and Building Systems
1. NYC Local Law 97: Emissions Caps and Reporting for Co-op and Condo Buildings
Requires NYC buildings over 25,000 sq ft to meet greenhouse gas emissions caps starting in 2024. NYC Cooperative and Condo Boards governing buildings over 25,000 sq. ft. face a critical deadline on May 1, 2025, for the first annual emissions reports.
Key points:
- 2024: Initial emissions caps take effect
- May 1, 2025: First annual emissions reports due
- 2030: 40% emissions reduction target; net zero by 2050
The city will review LL84 Benchmarking reports to flag concerning LL97 filings. May 1, 2025 marks a critical deadline for the first annual emissions reports. Start planning capital projects now to meet emissions targets and avoid costly penalties. For more on Local Law 97’s impact, read our managing partner Jim Woods’ article in New York Real Estate Journal.
Penalty : $268 per metric ton over the emissions limit. Significant fines for failure to file or falsifying reports.
2. Local Law 84: Energy Benchmarking Requirements for NYC Residential Buildings
Buildings of 25,000 sq ft or more face a critical May 1, 2025 deadline for annual energy and water consumption reporting.
Key points:
- Annual energy and water usage must be reported to the city
- Annual energy and water usage reporting is key to informing efficiency strategies and assessing Local Law 97 compliance readiness.
Deadline: May 1 annually
Penalty: $500 per violation, and additional $500 per quarter when the violation is not corrected
3. Local Law 87: Energy Audits and Retrofitting for New York City Co-ops and Condos
Buildings of 50,000 sq ft or more must submit Energy Efficiency Reports (EERs) every 10 years.
Key points:
- Deadline: December 31 of the reporting year, based on the last digit of the building’s tax block number
- Energy audit required to assess usage and identify improvements
- May require “retro-commissioning” to optimize systems
- Registered architect or licensed engineer must conduct the audit
- Owner must file report on findings and planned improvements
EERs (Energy Efficiency Reports) provide valuable data for long-term energy management and support compliance with Local Law 97. These reports are required every 10 years for buildings of 50,000 sq ft or more
Penalty: $3,000 for the first year of non-compliance, $5,000 for each subsequent year until the report is filed
4. Local Law 152: Gas Piping Inspection Compliance for NYC Residential Buildings
Buildings must undergo gas piping inspections, conducted by a Licensed Master Plumber (LMP), every 4 years.
Key points:
- LMP provides Gas Piping System Periodic Inspection Report (GPS1) within 30 days
- Submit Gas Piping System Periodic Inspection Certification (GPS2) to NYC Department of Buildings, (DOB) within 60 days
- Issues fixed within 120 days; buildings without gas piping must still certify.
Prioritize timely gas piping inspections and certifications to ensure building safety and avoid significant penalties.
Deadline: Varies by building’s community district, check your building’s deadline here. NYC DOB website for specific dates
Penalties:
- Up to $10,000 for failure to inspect and submit certification
- Up to $5,000 for failure to correct unsafe conditions
Critical safety note: LMP must immediately report unsafe conditions to authorities.
Health and Safety Regulations for NYC Boards
1. New State Law: New York State Bedbug Infestation Notification Law for Co-ops and Condos
Effective December 22, 2024, pending additional approval by state lawmakers in January 2025, this new law amends the real property law through the addition of section 235-j to address bedbug infestations.
Key points:
- Notification Requirements: Landlords must notify tenants in writing within 72 hours of discovering a bedbug infestation. Written notice is required for tenants in close proximity to the infested unit or at risk.
- Existing NYC Law: Adds to the current NYC requirement that landlords disclose a one-year history of bedbug infestations when signing a lease.
Penalties and Legal Implications: Bedbug infestations can breach the Warranty of Habitability, potentially entitling tenants to rent abatements or supporting claims for constructive eviction. Cooperative board members may also face liability for neglecting their duties to address infestations.
Implement clear protocols for addressing and notifying residents of bedbug infestations to comply with new requirements and protect tenant health. This law emphasizes the importance of prompt action to safeguard tenant health and safety. Boards should ensure compliance by implementing clear protocols for addressing bedbug infestations and notifying affected residents.
2. NYC Local Law 55: Indoor Allergen Hazards, (Asthma-Free Housing Act) in Cooperative and Condominium Buildings
Requires annual inspections and remediation of indoor allergen hazards. Annual inspections and prompt remediation of allergen hazards are crucial for maintaining a healthy living environment.
Key points:
- Annual inspections for pests and mold in all units
- Use Integrated Pest Management (IPM) techniques for pest control
For mold issues:
- Use safe work practices and protective equipment
- If over 10 sq ft in buildings with 10+ units, hire licensed mold assessor and remediator
Deadlines: Annual inspections and necessary remediation. Correct violations by deadline on notice
Penalties: $10 to $125 per day, up to $10,000 maximum. Depending on violation class and severity
3. Local Law 11: (FISP) Facade Inspection Requirements for NYC Co-ops and Condos
Requires periodic inspections of building exteriors over 6 stories to ensure public safety. Boards should prioritize timely inspections and repairs to ensure building safety and avoid costly penalties.
Key points:
- Inspections required every 5 years by a Qualified Exterior Wall Inspector (QEWI). Buildings have different filing deadlines depending on the last digit of their block number
- Detailed FISP report filed with NYC Department of Buildings (DOB) after inspection
Deadlines: SWARM, (Safe With A Repair and Maintenance Program). Repairs by deadline specified in technical report. Unsafe conditions must be promptly repaired
Penalties: $1,000 per month for late filing, $5,000 per year for failure to file
4. Local Law 195: Fire Safety and Evacuation Plans for New York City Residential Buildings
Ensures buildings have comprehensive fire safety measures in place. Maintain and regularly update comprehensive fire safety measures to protect residents and ensure compliance.
- Buildings must have a detailed fire safety and evacuation plan
- Plan provided to residents, displayed in common areas
- Regular fire alarm and sprinkler system maintenance required
Construction and Sustainable Roofing Regulations
1.) NYC Local Law 154: Construction Notification Requirements for Co-op and Condo Boards
Protect residents during major construction projects through proper notification and safety planning.
- Residents must be notified before major construction/repairs
- Safety plan shared to protect residents
- Department of Buildings notified before substantial projects
Penalty: Not specified in the law
2.) Local Laws 92 and 94: Sustainable Roof Zones for New York City Residential Buildings
Consider sustainable roofing options when replacing your building’s roof to comply with regulations and potentially benefit from tax incentives.
- Promotes environmentally friendly roofing practices.Sustainable roofing (solar, green roof) required when replacing roof
- Reflective material if solar not feasible
- Tax incentives often available
Requirement: Applies whenever a building’s roof is replaced
Penalty: Not specified in the law
Learn How We Can Assist You
By staying informed and proactive about these regulations, cooperative and condominium boards can ensure compliance, avoid penalties, and maintain the safety and efficiency of their buildings.
At Woods Lonergan PLLC, we stand ready to provide comprehensive guidance on compliance requirements, helping your board navigate regulatory challenges with confidence and precision.
Our expertise ensures that your community not only meets its legal obligations but also strengthens its governance practices in the process.
For personalized guidance on any other matters related to cooperative and condominium law, please contact us online or call our cooperative condominium practice group at (212) 684-2500.
To provide easy access to official information on the regulations discussed in this guide, we’ve compiled a list of relevant NYC.gov resources.
These links offer additional details and updates on the local laws affecting co-op and condo board governance:
- Local Law 97 (Building Emissions):
https://www.nyc.gov/site/sustainablebuildings/requirements/emissions-limits.page - Local Law 84 (Benchmarking):
https://www.nyc.gov/site/buildings/codes/ll84-benchmarking-law.page - Local Law 87 (Energy Audits and Retrofitting):
https://www.nyc.gov/site/buildings/codes/local-law-87-faq.page - Local Law 152 (Gas Piping Inspection):
https://www.nyc.gov/assets/buildings/pdf/ll152of2016_faq.pdf - Local Law 55 (Indoor Health Hazards):
https://www.nyc.gov/assets/doh/downloads/pdf/asthma/local-law-55.pdf - Local Law 11 (Facade Inspection and Safety Program):
https://www.nyc.gov/site/buildings/dob/pr-facade-local-law-11-insp.page - Local Law 147 (Smoking Policy):
https://www.nyc.gov/assets/doh/downloads/pdf/smoke/smoking-sample-policy-residential.pdf - New York State Bedbug Infestation Notification Law:
https://www.nyc.gov/site/hpd/services-and-information/bedbugs.page
Woods Lonergan PLLC represents Condominium and Cooperative Boards of directors in matters of board governance, transactions and litigation throughout New York, including Manhattan, Brooklyn, Queens, Bronx, Staten Island, Nassau, Suffolk, and Westchester Counties.