Local Law 97 and Energy Grades: The 2026 Deadlines Queens Landlords Can’t Miss
Managing a multi-family property in New York City is no longer just about collecting rent and fixing leaks. Over the last few years, the city has aggressively rolled out sweeping environmental and energy-efficiency regulations. In 2026, the grace periods are over, and the enforcement phase is fully underway.
If you own a covered building—generally defined as properties 25,000 square feet or larger, or two or more buildings on the same tax lot that exceed 50,000 square feet combined—you have two massive compliance deadlines rapidly approaching this year.
Failing to meet these Department of Buildings (DOB) requirements will result in automatic, recurring fines that can severely damage your property’s net operating income. Here is exactly what you need to know to protect your bottom line in 2026.
Deadline 1: Local Law 97 Annual Emissions Reporting
Local Law 97 is the centerpiece of the city’s Climate Mobilization Act, placing strict limits on the greenhouse gas emissions of large buildings.
Covered buildings were required to submit their annual emissions report by May 1, 2026, but if you missed that date, you have a narrow window to catch up: the DOB is accepting reports through June 30, 2026.
June 30, 2026, is also the absolute final deadline to apply for an extension to the upcoming August 29, 2026 filing deadline.
The Penalty for Missing It: The city is not issuing warnings. The penalties for non-compliance are severe, including a $3,000 fine in the first year, which escalates to a $5,000 fine annually thereafter. This is in addition to the hefty penalties you could face if your building actually exceeds its specific emissions limits. Property owners must continue preparing documentation and addressing compliance issues early to avoid last-minute challenges.
Deadline 2: Energy Efficiency Grades Must Be Posted
Separate from Local Law 97, but equally important, is the requirement to publicly display your building’s Energy Efficiency Grade (a letter grade from A to F based on your building’s energy and water consumption).
Starting October 1, 2026, these updated labels will be available for you to download and print directly from the DOB NOW portal.
You must print this label and visibly post it near each public entrance of your covered building by October 31, 2026.
The Penalty for Missing It: If a DOB inspector visits your property and finds that the label is missing, improperly displayed, or outdated, you will be hit with a $1,250 annual fine. Furthermore, an embarrassing “D” or “F” grade posted on your front door can negatively impact how prospective tenants and future buyers view the property.
The Big Picture: Retrofit or Liquidate?
Complying with these green energy laws often requires far more than just paperwork. For many older buildings in Brooklyn and Queens, achieving a passing grade and avoiding emissions fines requires massive capital expenditures—such as upgrading the boiler, replacing all the windows, or heavily insulating the roof.
If you do not have the hundreds of thousands of dollars in liquid capital required to execute these green retrofits, the annual DOB fines will slowly eat away at your equity.
This is a critical moment to evaluate your long-term strategy. Does it make financial sense to pour capital into retrofitting the building, or is it time to cash out your equity at the top of the market?
Get a Clear View of Your Options
At the LJ Realty Team, we help landlords across Brooklyn and Queens make data-driven, highly strategic decisions.
If you are overwhelmed by the 2026 compliance landscape and want to understand how much your building is currently worth—open violations and all—we can help. We can provide a comprehensive Free Home Evaluation to show you what your property would command on the open market today, or connect you with cash investors who will buy the property “as-is” and take on the green retrofitting burden themselves.
Don’t let DOB fines drain your profits. Visit us at 127-03 Rockaway Blvd in South Ozone Park, or contact Sheldon The Realtor online today to build your 2026 property strategy.
