Governor Kathy Hochul signed legislation on May 27, 2026 that exempts most new residential construction from New York's State Environmental Quality Review Act, or SEQRA. The changes represent the first major overhaul of the environmental review process since 1975 and took effect immediately, applying to projects currently in development unless an agency had already required an environmental impact statement.
What SEQRA required
SEQRA, a 1975 state law, required developers of new buildings to submit detailed plans outlining the effect their projects would have on the surrounding environment. Critics argued the process was duplicative of other environmental laws, added costs, and allowed opponents of new development to use the review process as a basis for lawsuits that could delay projects by years.
Supporters of the reform argued that most projects undergoing SEQRA review did not produce findings of significant environmental impact.
What the new law does
Most new housing is now exempt from SEQRA review. Developments must still comply with other laws and regulations designed to protect the environment.
The exemptions vary by location and size:
- New York City: Projects up to 500 units in medium- and high-density districts, or up to 250 units in low-density areas, are exempt.
- Other urban areas: Projects up to 300 units are exempt.
- Most of the state: Projects up to 100 units are exempt.
- Less developed areas: Only projects of 20 units or fewer qualify for the exemption.
Projects on undeveloped or agricultural land are not exempt regardless of size or location.
Effective date and scope
The changes took effect immediately upon signing and now apply to pending projects, unless an agency has already determined that an environmental impact statement was required.
Context for NYC housing development
The Mamdani administration has said the SEQRA reform, combined with other streamlining measures, will cut eight months from the development timeline for all affordable housing projects and up to two years for projects requiring rezonings.
The reform is one component of the broader Block by Block housing plan released by Mayor Mamdani on May 26. That plan sets a target of 200,000 new affordable homes over the next decade.
What remains unchanged
The exemptions do not remove all regulatory requirements for housing development. Zoning approvals, building permits, and other city and state reviews still apply. Projects above the size thresholds must still complete a full SEQRA review. Environmental groups including Riverkeeper and the Sierra Club opposed the changes, arguing SEQRA serves as a critical safeguard.
