New York State Budget Exempts Certain Housing Projects from Environmental Review

Authors: Wesley O'Brien, John Overstreet

The recently-adopted New York State 2026 budget exempts housing projects that meet certain criteria from the State Environmental Quality Review Act (SEQRA) and City Environmental Quality Review (CEQR). In conjunction with recent reforms to the New York City land use review process, this is intended to significantly expedite approvals for qualifying projects.

Effective immediately, rezonings and other land use actions in New York City that meet the following thresholds may be exempt from environmental review:

• In higher-density districts (R6 and above), actions to facilitate up to 500 housing units; and
• In lower-density districts (R5 and below), actions to facilitate up to 250 housing units.

To qualify, a housing project:

• Must not contain more than 50,000 square feet of commercial or other non-residential uses;
• Must not be located in an existing industrial zone;
• Must not be located in a flood hazard area or a designated coastal erosion hazard area;
• Must be located on a "previously disturbed site," which was substantially altered by a building or other improvement at least two years prior to the project application; and
• Must comply with additional requirements regarding hazardous materials remediation, and water and sewer connections.

It is anticipated that application materials will need to be filed in order to confirm whether a project is exempt.

Agencies are reviewing pending projects to confirm eligibility and will be providing further guidance for new projects.

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