NYC Local Law 11: How Facade Projects Impact Owners, Buyers, and Sellers
Local Law 11 projects are a normal part of owning property in NYC, but they can have ripple effects on financing, marketability, and value. The key is preparation — understanding where your building stands, what’s planned, and how to address it proactively in any transaction.
If you live in or are looking to buy a building taller than six stories in New York City, you’ve probably encountered Local Law 11 — officially known as the Facade Inspection and Safety Program (FISP).
This city law, designed to protect pedestrians from falling debris, requires building facades to be inspected and maintained every five years. While essential for safety, these inspections can reveal costly repairs, result in scaffolding installations, and even affect financing for buyers.
Whether you’re an owner, buyer, or seller, understanding how Local Law 11 projects work — and how they can influence value, timing, and financing — can help you navigate the NYC real estate market with fewer surprises.
1. What Is Local Law 11 (FISP)?
Under Local Law 11, buildings six stories or taller must undergo a detailed façade inspection by a qualified architect or engineer every five years. The report categorizes the façade as:
Safe
Safe With a Repair and Maintenance Program (SWARMP) — safe for now, but repairs are required by the next cycle.
Unsafe — requires immediate repairs.
If repairs are needed, the Department of Buildings (DOB) often requires scaffolding, also known as a sidewalk shed, even before work begins.
2. The Real-World Impacts
Facade projects can affect every stakeholder in a transaction:
Assessments: Repair costs are often passed to owners through lump-sum assessments or increases in monthly maintenance/common charges.
Curb Appeal: Scaffolding can make a property appear less appealing to buyers and can block natural light or views.
Disruption: Ongoing work can mean noise, dust, and reduced building access.
Financing Risk: Active DOB violations related to facade conditions can cause lenders to deny financing — even late in the process.
Pricing Pressure: Active projects and the costs they bring can influence negotiations and perceived value.
3. Buyer Considerations
For buyers, facade work can be more than just a visual inconvenience — it can jeopardize your loan approval. In one recent transaction I worked on, a buyer was fully approved for financing, only for the bank to deny the loan just before closing due to open DOB violations tied to facade safety. This is not uncommon. Lenders want assurance that the building is structurally sound and compliant before funding a mortgage. What to do as a buyer:
Have your attorney check for open DOB violations early in due diligence.
Ask if the building has recent or upcoming facade work and whether there’s a repair plan and budget.
Inquire about assessments — both active and planned.
Understand the lender’s guidelines before making an offer.
Use potential costs or risks as negotiation leverage — for example, asking the seller to cover part or all of an assessment.
4. Seller Considerations
If you’re selling in a building with active or upcoming facade work:
Disclose Early: Buyers (and their attorneys) will find out, so transparency builds trust.
Be Ready to Explain: Have documentation on the project’s scope, stage, and financing plan.
Adjust Strategy: Pricing, marketing photos, and timing may need to account for scaffolding or construction.
Consider Timing: If possible, list before scaffolding goes up or after work is completed to maximize appeal.
Address Financing Risks: Work with your agent to prepare buyers for what their lender may require — and have a plan if a buyer’s financing falls through.
5. Owner / Homeowner Considerations
Even if you’re not buying or selling right now, facade projects can affect your monthly expenses and future property value. Stay informed:
Know your building’s inspection cycle and filing deadlines.
Attend board meetings when facade work is discussed.
Ask for a timeline and budget for planned work.
Understand how costs will be covered — reserve fund, loan, or assessment.
Plan ahead financially to absorb any increases in carrying costs.
6. Loans, Assessments, and Timing
Some buildings finance major facade work with a capital loan rather than a one-time assessment. While this can spread costs over years, it may increase monthly common charges. For sellers, assessments levied shortly before closing can create tension — buyers may request credits or expect the seller to pay the balance. For buyers, it’s essential to know if you’ll inherit these costs after closing.
7. The Role of Your Real Estate Agent
Local Law 11 projects are a normal part of owning property in NYC, but they can have ripple effects on financing, marketability, and value. The key is preparation — understanding where your building stands, what’s planned, and how to address it proactively in any transaction. An experienced NYC agent helps:
Buyers: Flag buildings with financing red flags early and connect you with lenders who understand co-op/condo nuances.
Sellers: Prepare the right disclosures, set buyer expectations, and adjust strategy to work around scaffolding or active repairs.
Owners: Evaluate how upcoming facade projects might affect market value and help plan the best timing for a future sale.
Related Resources and Insights
Is your building undergoing a Local Law 11 inspection or repair project? Whether you’re buying, selling, or currently own in NYC, I can help you understand how it may affect your financing, property value, and transaction strategy. Let’s connect. Feel free to reach out.