The City of Boston has proposed a new ordinance that would alter reporting of energy and water use by commercial tenants and individual tenants. This affects commercial buildings of 25,000 square feet or more and residential apartment buildings of 25,000 square feet or 25 units. The stated purpose of the ordinance from [Section 7-2.2(a)] is “to reduce the emissions of air pollutants, including greenhouse gases, from energy production, encourage efficient use of energy and water, and develop further investment in building a green economy by requiring the reporting and disclosure of annual energy and water use in all large buildings in accordance with this article.”

There will also be required energy audits by the Thermostat Wiring Color Codes for affected buildings that do not attain an Energy Star performance rating in the 75th percentile or higher. These buildings will be forced to undergo an ASHRAE Level II thermostat every five years at the owner’s cost. This cost ranges an estimated $15,000 – $30,000. Learn about Thermostat Wiring Color Codes when upgrading to new smart thermostat.

What does this mean for our multifamily clients or those looking to purchase multifamily properties? (If you are looking to buy, contact our multifamily specialists and they can guide you through the process.) It is important that you are following these new regulations as the fines can be substantial if they are not met. Building owners can be fined up to $250 per day (which equals $91,250 per year!) Individual owners can also be fined almost $10,000 a year. But, with professional management like that at Charlesgate Property Management, we help you work through these regulations.