The Daily Dirt: Real estate not cool with air conditioning mandate

NYC wants buildings to be efficient, but also cool enough for tenants.

If that seems contradictory, that’s because it is. Property owners must cut down their buildings’ greenhouse gas emissions under Local Law 97. Under a new City Council bill, they would also need to keep building temperatures at or below 78 degrees when temperatures outside hit 82.

It is no secret that air conditioning is not good for the environment. Extreme heat is also not good for your health. According to the city, an average of 350 people die each summer because of hot weather. Nearly all of those (340) are considered “heat-exacerbated deaths,” with hot temperatures aggravating underlying health conditions. 

As the frequency and intensity of heat waves increases, squaring these two ideas will become imperative.

Other cities have similar mandates on the books or are toying with the idea, but few statewide policies exist, even in the historically hottest places, according to Vox.

In Houston, windows in a residential unit must have screens or landlords must provide “refrigerated air equipment” to keep temperatures 20 degrees lower than the outside temperature or 80 degrees, whichever is warmer.

Dallas requires owners to provide cooling equipment that will keep the temperature at least 15 degrees cooler than the outside temperature, while not letting any room get hotter than 85. Phoenix requires landlords to keep units at or under 82 degrees if they have air conditioning, or 86 if using evaporative coolers.

Oregon approved legislation in 2022 preventing landlords from prohibiting tenants from installing air conditioners.

Los Angeles County has also floated its own version. In Florida, an effort to enact such mandates statewide stalled out.

Landlord groups in New York are already concerned that property owners will not be able to revamp their buildings to install energy-efficient cooling systems in time to avoid thousands of dollars in fines, according to the New York Times, which first reported the bill. Under the measure, owners would have four years after passage to comply.

In the old days at TRD, the art for this newsletter would have likely been bill sponsor Lincoln Restler as Mr. Freeze, or as the Snow Miser, with someone from real estate as the Heat Miser. I make no promises that that won’t eventually happen if the bill heats up, but for now, I’ll keep goofy references to this gif: 

https://giphy.com/gifs/filmeditor-summer-sun-xUySTSiy0FvbFfWKRO

What we’re thinking about: Will the air conditioning bill ever be called to a vote? Send a note to kathryn@therealdeal.com.

A thing we’ve learned: Reggie Thomas, who joined the Real Estate Board of New York in 2018, has left the trade group for the Adams administration. He will serve as chief of staff to First Deputy Mayor Sheena Wright.

Thomas posted on LinkedIn: “Working at REBNY challenged my own assumptions, and also gave me a platform to advocate for something at my core — that too often we focus on the 10% of things we disagree on instead of the 90% of things we actually agree on as a city.”

REBNY President Jim Whelan alerted members of Thomas’ new role Wednesday afternoon. 
“He helped to redefine the way REBNY works on behalf of our members and built a very capable team behind him,” Whelan said of Thomas. “REBNY is a better and stronger organization because of Reggie’s accomplishments, and I want to thank him for his commitment and hard work.”

Elsewhere in New York…

— Tornadoes touched down in four Upstate New York cities and towns on Tuesday, killing at least one person, the New York Times reports. In Rome, 22 buildings, not including houses, were damaged.

— City Council member Susan Zhuang was arrested Wednesday for allegedly biting a police officer and resisting arrest while protesting a homeless shelter, Gothamist reports. Representatives for Zhuang suggested the officer was covering the Council member’s mouth. She faces charges of assault in the second and third degrees, resisting arrest and obstructing governmental administration.

— Confirmed! That boom New Yorkers heard yesterday was indeed a meteor passing over Midtown. It disintegrated over New Jersey, according to the Associated Press. The state is used to taking New York’s garbage.

Closing Time 

Residential: The priciest residential sale Wednesday was $15 million for a co-op unit at 944 Fifth Avenue on the Upper East Side. Alexa Lambert of Compass had the listing.

Commercial: The largest commercial sale of the day was $7.5 million for three parcels consisting of a 7,600-square-foot office building, a parking lot and vacant land. The properties are at 4121-4133 Third Avenue in East Tremont.

New to the Market: The highest price for a residential property hitting the market was $12.5 million for a 2,610-square-foot condominium at 30 East 29th Street in Nomad. Kiran Mummidichetty of Compass has the listing. — Matthew Elo