Top Three Electrifying Tips
How coop and condo boards can take advantage of the Inflation Reduction Act
The Inflation Reduction Act (IRA) of 2022 has passed. It comes with significant rebates and tax incentives for electrifying homes and apartments. If taken advantage of at the fullest, the IRA will help NYC coop and condo owners and boards minimize their fines as part of Local Law 97. Rebates and tax benefits will apply both to the equipment, the installation, as well as on the needed electricity upgrades. It includes electric upgrades by the owners as well as certain multifamily properties. Here are our top tips for coop and condo boards to act now:
1) Collaborate
Coop and condo boards need to educate themselves on what types of items are covered in the IRA that can help improve their building’s Energy Star score by reducing the building’s carbon emissions. Side effects will be an improved energy efficiency score and a reduction in the building’s LL97 fines. Since sustainability is such a hot topic, finding volunteer coop or condo board members and owners should be easy. Involving some coop owners to set up a green or sustainability committee to do the research on the IRA helps alleviate any extra burden on the coop board. Some resources to get the committee started are:
According to Fannie Mae’s calculator, NYC’s median income is $112,600.
Income qualification calculator and a list of products and services that are covered are provided by Rewiring America.
2) Decide
Are there any changes needed to the house rules or bylaws that prevent any of the electrification upgrades that are covered by the IRA? Most of the items covered are inside the apartments and might not need board involvement. However, some coop documents might not allow (for example) for the installation of heat pumps, replacing windows, or even switching stoves.
We recently had a NYC coop owner asking for our opinion because her board did not approve their request to install an electric stove. The coop board’s reason was that the building did not have enough electric capacity for their owners to install electric stoves. The IRA covers electric upgrades for multifamily buildings that meet certain thresholds, so this might be a great time for buildings to increase their electric capacity.
Decide on whether the board should have a few pre-approved products and installers to make it easier for coop and condo owners to make decisions. Having pre-approved products and installers will serve two purposes, 1) it’s less work for the property manager and for the resident manager/ super, and 2) it may come with a bulk discount.
3) Communicate
Have the green or sustainability committee write up their findings so that the coop board or property manager can easily communicate this with the building’s owners. Communicate about the green initiatives frequently and repeatedly through newsletters, on the building’s online platform, and at the upcoming Christmas Holiday social. We recommend that the communication isn’t limited to the benefits for the environment by reducing NYC’s carbon emissions, but also includes how this will help minimize the LL97 fines and potentially improve the Energy Efficiency Score. Make sure that the message is clearly communicated to convey that this is to help every coop and condo owner equally and not only in the interest of the board.
The IRA is too good of an opportunity for “free money” for NYC coop and condo owners, and boards, to let pass. Plan now so that your fellow coop and condo owners are at the starting line to make their upgrades in 2023. The rebate programs are set up to last until September 30, 2031. However, the money allocated to NY could be used up long before then, so NYC coop and condo boards need to make this a priority to minimize their carbon output and LL97 fines.
If your association corporation needs to reduce their operating costs to become greener and more sustainable, The Folson Group provides energy efficiency consulting services that reduce energy and water usage by up to 50%.
For any questions about the projects that your coop or condo board is working on, email us at info@thefolsongroup.com or call us at (917) 648-8154.