State-level zoning changes have been proposed as part of the Budget process. 

State-level zoning changes have been proposed as part of the Budget process.

In 2026, Governor Kathy Hochul has proposed changes to the State Environmental Quality Review Act (SEQRA) aimed at fast-tracking housing projects to address the state’s affordability crisis. The core of the proposal is to exempt certain housing projects from additional environmental review if regulatory agencies determine they have “no significant impacts.”

Specific details of the proposed exemptions include:

In New York City: The exemption would apply to housing projects of up to 250 units, or up to 500 units in areas with higher-density zoning.

Rest of the State: Projects of up to 100 units could be exempt if they are located on “previously disturbed” land and already have connections to existing water and sewer infrastructure.

Definition of “Previously Disturbed”: The proposal defines these as sites developed more than two years prior to a permit application and “substantially altered” by that previous development.

Reactions and Controversy

The proposal has divided environmental and advocacy groups:

Supporters: Groups like the New York League of Conservation Voters argue that denser housing near mass transit is a net benefit for climate change goals.

Critics: Organizations such as the Sierra Club Atlantic Chapter and Citizens Campaign for the Environment worry that the changes are too broad and could allow developers to bypass protections for clean water and critical habitats, such as farmland with existing structures.

The New York State Legislature is expected to hold hearings on these budget proposals through February 2026, with counter-proposals likely emerging in early March.

Do Hochul’s proposed changes also apply to NYC Historic Districts?

Based on the details of Governor Hochul’s “Let Them Build” 2026 budget proposal, projects located in NYC Historic Districts or those substantially near individual landmarks are generally not eligible for the new SEQRA exemptions.

While the proposal aims to fast-track housing by exempting projects of up to 250 units (or 500 in high-density areas) from environmental review, it includes specific “site-specific criteria” that maintain protections for historic resources:

Historic Districts: Projects are typically disqualified from the exemption if the site is wholly or partially within a district designated, calendared, or eligible for designation as a New York City Landmark, Interior Landmark, or Scenic Landmark.

Proximity to Landmarks: The exemption also may not apply if a project is “substantially contiguous” to a designated or eligible historic building, structure, or site.

State and National Registers: Sites listed or eligible for the State or National Register of Historic Places are also excluded from these streamlined reviews.

Key Context for Historic Properties:

Mandatory Local Review: Even for qualifying projects, the proposal does not override local zoning or other permitting requirements, such as those from the Landmarks Preservation Commission (LPC).

Incentives for Preservation: Governor Hochul has simultaneously expanded Historic Rehabilitation Tax Credits to encourage creating affordable housing within existing historic landmark buildings rather than bypassing review for new construction on those sites.

The legislation specifies that for any “qualifying action” to be exempt, it must still undergo a determination by the local permitting authority to ensure it meets all environmental and preservation standards.

How can we comment on these proposals?

Based on current New York State legislative schedules and procedures, here is how you can comment on these proposals:

1. Participate in Joint Legislative Budget Hearings
   The most direct way to comment is through the ongoing joint hearings held by the Senate and Assembly.

Upcoming Relevant Hearing:

Housing: Wednesday, February 25, 2026, at 2:00 PM.

Past Relevant Hearing (Still Accept Testimony):

Environmental Conservation/Energy: This hearing took place on January 28, 2026. While the live oral testimony period has passed, the legislature often accepts written testimony for a period after the hearing.

2. Submit Written Testimony
   If you cannot attend a hearing or the deadline for oral testimony has passed, you can submit written comments directly to the committees.

Deadlines: Written testimony for individuals not giving oral testimony for the Housing hearing is due by February 25 at 5:00 PM.

Submission: Testimony can typically be submitted through the NYS Assembly or NYS Senate budget portals.

3. Contact Your State Representatives
   Because these proposals are part of the 2026-2027 Executive Budget, they must be approved by the State Legislature by the April 1 deadline. You can voice your support or opposition directly to your local representatives:

Find Your Senator: Use the NYS Senate “Find My Senator” tool.

Find Your Assembly Member: Search via the NYS Assembly website.

Direct Contact:

Senate Switchboard: 518-455-2800

Assembly Switchboard: 518-455-4100

4. Governor’s Office You can also send comments directly to Governor Hochul’s office:

Phone: 518-474-8390

Mail: Executive Chamber, State Capitol, Albany, NY 12224

Division of the Budget: General budget inquiries and written testimony can be sent to BudgetHearing@budget.ny.gov.