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Posted By: Emma E. Marshall, Daniel Ruzow, and Bryant S. Caizachana Pilataxi

New York State’s 2026-2027 budget included the most significant changes to the State Environmental Quality Review Act (SEQRA) in decades, largely aimed at tackling the State’s housing crisis. As part of Governor Hochul’s “Let Them Build” agenda, these reforms are intended to streamline new housing projects by statutorily exempting those that meet certain criteria from SEQRA review as a “qualified action”. Generally, the following types of housing projects are expected to see reduced environmental review timelines: 

• New York City: projects with up to 250 units citywide and those with up to 500 units within medium and high-density areas.
• Urban areas outside New York City: projects with up to 300 units.
• Non-urbanized areas: projects with up to 100 units, and those with up to 20 units in areas without zoning. 

Most notably, projects are required to be located on a “previously disturbed site” which is a newly defined term, and which has specific factors (different for NYC and outside NYC) that must be met to qualify. The reforms also exempt several other categories of public infrastructure projects from SEQRA review and establish new deadlines for lead agencies when determining environmental significance and completing a final environmental impact statement. 

New SEQRA Exemptions for “Qualified Actions”

SEQRA regulations have long recognized Type II actions as activities that do not require environmental review because they are presumed not to have a significant environmental impact. The new legislation, however, creates a separate category of “qualified actions” that are statutorily exempt from SEQRA review.

Within New York City, a housing project is a “qualified action” if it meets all of the following conditions: (1) it is connected to existing community or public water and sewerage systems at the commencement of habitation; (2) it is located at a previously disturbed site; (3) it is not located within an area zoned exclusively for industrial uses; (4) it contains no more than 50,000 square feet of commercial, retail, community facility, or other non-industrial non-residential uses; (5) the total unit count does not exceed 250 units, unless the project is in a zoning district where buildings may exceed 45 feet in height or where there is no maximum building height, in which case it may include up to 500 units; and (6) the project does not include construction of only one single-family residence on a parcel of one-half or more acres.

Outside New York City a housing project is a “qualified action” if it meets all of the following conditions: (1) it will be connected to existing community or public water and sewerage systems at the commencement of habitation; (2) it is located at a previously disturbed site (and for sites outside NYC or urban areas, abut, adjoin or be opposite from a similarly disturbed parcel); (3) it contains no more than 20% commercial, retail, community facility, or other non-industrial non-residential uses by gross floor area; (4) it contains no more than 100 dwelling units (or 300 units in urbanized areas, as defined by the U.S. Census Bureau, or 20 units in municipalities without zoning regulations); and (5) the project does not include construction of only one single-family residence on a parcel of one or more acres. 

The new category of exempt “qualified actions” also includes certain public park and trail projects on a previously disturbed site, certain New York City public school facilities, certain water and wastewater infrastructure projects, and green infrastructure retrofits.

“Previously Disturbed Site” 

A newly added definition of a “previously disturbed site” (Environmental Conservation Law §8-0105.11) incorporates a parcel of land that has been substantially altered at least two years before the application by a current or formerly occupied building, improvement, or prior use. Additionally, in certain smaller municipalities outside Census-defined urban areas, to qualify a site must abut, adjoin, or be opposite another tract of land that was previously occupied, improved upon, or used for at least two years. However, such adjacent parcels cannot be occupied by an industrial or agricultural use. Certain other limitations remain such as parcels in certain flood hazard areas, areas used for agricultural purposes, and those located in coastal erosion hazard areas which are excluded from this definition. 

New Deadlines

The new legislation also brought about changes in certain deadline requirements under SEQRA review, although there are no default provisions if not met. As in the original legislation, responsible agencies must decide whether an environmental impact statement (EIS) is necessary as early as possible in the initial stages of the proposed action, but a deadline of no later than one year after the establishment of the lead agency was added. If a draft EIS is required, the agency must make the final EIS available within two years after determining that a draft is required. An agency may be permitted to extend the deadline after consulting with the applicant, but extensions are only authorized for the necessary amount of time to complete the draft EIS. 

Key Considerations

While the amendments can create a meaningful path for many housing projects to avoid lengthy environmental review, it is important to note that despite these reforms, the adopted legislation makes clear that local zoning review, site-specific reviews, contamination testing, and other environmental laws and regulations remain applicable. 

The legislation took effect on May 27, 2026, and applies to all pending proceedings on or after the effective date, except those actions for which a determination to require an EIS was made prior to the effective date are not subject to the provisions. Developers who currently or shortly will have projects under SEQRA review should be evaluating what effects the amendments may have. Likewise, municipalities and other local governmental agencies must quickly adapt to these reforms and statutory exemptions in reviewing projects. 

The significance of these reforms remains to be seen based on how responsible agencies will interpret the new definitions, statutory deadlines, and exemption criteria. To avoid mounting varying statutory interpretations and to further facilitate the legislative purpose of the reforms, the Department of Environmental Conservation should initiate rulemaking to incorporate these changes into the structure of the Part 617 regulations as well as update the SEQR Handbook as soon as possible. 

Whiteman Osterman & Hanna LLP (WOH) continues to monitor this development closely and for those that desire a consultation regarding the potential impact of these reforms please contact a member of WOH’s Environmental & Land Use Practice Group.