Certilman Balin Adler & Hyman, LLP’s Condo, Co-Op, and HOA Department remains at the forefront of representing developers and housing corporations in the preparation and filing of Offering Plans and related documentation. It is in this vein, that we wish to apprise developers of a significant new law known as the All-Electric Buildings Act (AEBA), which will reshape the way residential and certain mixed-use communities are built across the state. With the All-Electric Buildings Act soon taking effect, we encourage those engaged in new development to remain vigilant of the rapidly approaching deadline and procedural milestones that may influence future project planning and approvals.
With the AEBA taking effect on December 31, 2025, most new residential buildings of seven stories or fewer will be required to forgo natural gas service and instead utilize all-electric building systems. Beginning January 1, 2029, the law expands to cover nearly all new construction projects, regardless of height or use. This policy represents a major step in advancing New York’s climate goals under the Climate Leadership and Community Protection Act, and it will profoundly influence development strategy in the years ahead.
Our practice assist clients in understanding how the AEBA may impact their current and future project timelines as well as their financing. AEBA contains critical milestones. Only projects holding a valid building permit or a “substantially complete building permit application” before the December 31, 2025 deadline will preserve the option for gas hookups. Projects missing this benchmark must plan for all-electric systems moving forward. For developers managing new/current construction projects, careful coordination with local code enforcement officers will be essential, as the local municipality having jurisdiction will determine whether a building permit is “sufficiently complete,” with all necessary information to confirm compliance with New York State’s Uniform and Energy Codes.
Importantly, the AEBA does not apply to existing buildings or renovation projects, including gut rehabs. Owners and sponsors undertaking repairs, retrofits, or even major renovations to existing structures remain outside the scope of the new law. This distinction ensures that the AEBA targets only new construction, while future policy debates may address broader electrification of the existing housing stock.
Behind every development stands a web of complexity. The AEBA introduces new decision points for developers weighing design, compliance, and financing issues. These statutory requirements, while significant, also present new and exciting opportunities for developers to move forward with innovative all-electric designs that may qualify for sustainability incentives and future funding sources.
As we look to the future, Certilman Balin Adler & Hyman, LLP remains committed to helping sponsors and developers structure projects that are legally sound, financially viable, and environmentally responsible. With decades of experience drafting and filing Offering Plans with the New York State Attorney General’s Office, our attorneys remain at the forefront of guiding sponsors and developers through the changing legal landscape. We are honored to partner with those building New York’s next generation of housing and proud to continue guiding the development of communities that align with today’s legal requirements and tomorrow’s environmental goals.
Authors are the team in our Condominium, Cooperative & HOA Practice Group and can be reached at:
Richard Herzbach: rherzbach@certilmanbalin.com, Donna-Marie Korth: dkorth@certilmanbalin.com, Darren Stakey: dstakey@certilmanbalin.com and department’s intern Joseph Gherardi.
