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By Khristopher J. Brooks - January 14, 2026
New York Gov. Kathy Hochul vowed this week to take "a hard look" at the environmental review steps developers must follow to have state and local governments approve new home-building projects.
The current review process hasn't been updated "in literally half a century," and, in its current form, it holds up the construction of affordable housing New Yorkers desperately need now, the governor said Tuesday in a State of the State address in Albany. The governor hinted that changes could be underway that would get housing construction projects approved much faster and more easily.
"Right now, they slow down the very projects that help us fight climate change, create housing and strengthen our communities," Hochul said. "That’s why, in this budget, I’m proposing a simple common-sense update. When communities say yes to housing, infrastructure or clean energy, we’re going to let them build. When a town or city decides to move forward, they shouldn’t get stuck in regulatory hell."
Hochul and other state leaders are pressing for developers to build more because the Empire State is in a severe housing shortage. A 2022 study from the Regional Plan Association found that New York needs to build 800,000 units between 2022 and 2032 to keep up with current demand. A separate 2021 report from consultancy AKRF found that New York City alone needs 560,000 additional housing units by 2030.
The shortage of inventory is partly to blame for skyrocketing home prices. The median home price hit a record $451,000 in July — driven mostly by high demand and not enough supply. The state will need to add more housing in every region to help stem the tide of rising prices, real estate agents and local leaders have said.
"We cannot address our housing crisis without making it easier to build housing in New York City," Mayor Zohran Mamdani said in a statement after Hochul's speech. "Environmental review reform would bring our regulations into the 21st century and ensure we can deliver an affordability agenda on the timetable needed."
Simplifying the environmental review process
When a developer wants to build housing in New York, the project must first undergo an assessment spelled out in the 1975 State Environmental Quality Review Act, or SEQRA. New York City has similar legislation called the City Environmental Quality Review. In these reviews, a state or city agency surveys the land where the housing is proposed and determines whether there is any potential harm to the surrounding environment. Projects need to go through either one, not both, of these reviews.
If there are no potential adverse impacts, then the project can move forward. If there are, the developer must create an environmental impact statement — which details how the company would address any potential environmental issues. Then, the municipality may require the developer to hold hearings about the project so the public can weigh in.
Developers have long lamented the time it takes to pass SEQRA. Companies argue that city councils and planning boards have purposely parked a housing project in SEQRA review as a backhanded way of rejecting the development altogether amid community backlash. Developers also argue that SEQRA reviews slow their ability to get residents into new housing, delaying when projects can begin generating revenue.
Officials from New York City and the New York State Department of Homes and Community Renewal reviewed housing projects from the past decade and found more than 1,000 plans that had no adverse environmental impact but became mired in lengthy reviews, Hochul's office said.
Hochul's office also noted an analysis from Empire State Development — the state's economic development arm — that found housing projects take up to 56% longer in New York to finish when compared with similar states.
The governor — who is up for reelection this fall and looking to build or preserve 100,000 homes before her term ends — said Tuesday she's taking aim at SEQRA because "for too long, unnecessary red tape has stood in the way of new housing and critical infrastructure."
'Reform has to be a scalpel, not a chainsaw'
Hochul's remarks on revamping SEQRA drew praise from housing advocacy groups, mayors and the state's homebuilders' group. Environmental organizations, however, said they're reserving judgment until they see the specific changes Hochul recommends.
Citizens Campaign for the Environment, a New York advocacy group, said it objects to "pitting environmental protection against house needs. It is a false premise to blame important environmental review for the lack of affordable housing," Adrienne Esposito, the group's executive director, told Homes.com in an emailed statement. "If developers wanted to build affordable housing, they would build it. When a development gets held up due to SEQRA, it is because there are authentic environmental concerns."
Environmental Advocates NY, an Albany nonprofit organization that presses state lawmakers to adopt strong policies, said it agrees with Hochul that "we need more homes built faster in the right places."
The group said in a statement that it hopes Hochul doesn't destroy the spirit and intent of SEQRA.
"Reform has to be a scalpel, not a chainsaw," the group said. "The yet-to-be-seen details and guardrails of this proposal will determine whether it is smart streamlining that helps deliver housing, renewables and critical infrastructure, or an erosion of bedrock protections that shifts costs to communities later."
In a policy brief released after the address, the governor's office said Hochul's proposal will include exempting certain types of housing from having to complete a SEQRA but didn't give details on what types. The projects would still need to meet any local building permit requirements, the brief stated.
To be sure, any changes Hochul recommends would require an OK from state lawmakers.
Peter Florey, New York State Builders Association president, said he hopes Hochul's environmental review tweaks will help housing production while also safeguarding the environment,
"It is important that we get back to the original intent of the SEQRA process, which was to protect our environment," Florey said in a statement. "SEQRA was not intended to be used as a means of slowing or preventing much-needed housing production.
