NY State Launches EXPRESS NY to Streamline Regulations; Governor Promises SEQRA Reforms

NY State Capital Building in Albany - Photo Credit: Shutterstock

ALBANY—Following up on her promised commitment to address the state’s burdensome regulations and policies that stand in the way of development, Gov. Kathy Hochul announced on Feb. 13 the launch of EXPRESS NY (Expediting Processes and Regulations to Enable Streamlined Services).

Of particular interest to the real estate development community, the governor as part of her “Let Them Build” agenda has also promised reforms to the State Environmental Quality Review Act (SEQRA), which has been criticized by many in the building sector as being a major impediment for housing and commercial construction in New York State.

As part her State of the State and budget messages earlier this year, the governor has proposed to amend the state SEQRA law to classify certain types of housing projects that are compliant with local zoning and have no significant impacts on the environment as not in need of additional SEQRA review. Projects will still be required to comply with crucial state regulatory and permit requirements governing water use, air quality, environmental justice, and protection of natural resources, as well as local zoning and permitting requirements. Projects must also be located outside of flood risk areas in order to qualify. The type of housing project that can be reclassified under SEQRA will differ according to the housing needs and contexts of different parts of the state.

In New York City, the state will set caps on the size a building must be to avoid the requirement of additional SEQRA review, with caps varying on the basis of the density of the neighborhoods as determined by the city. In the rest of the state, to avoid additional SEQRA review, housing projects must be on previously disturbed land, connected to existing water and sewer systems, and subject to additional unit caps. Across all of New York, projects eligible to bypass SEQRA review must comply with all locally controlled zoning requirements.

The governor in order to facilitate the speedier, cheaper delivery of a broad range of beneficial infrastructure projects, is also proposing to adjust SEQRA’s classifications to allow important categories of projects as not in need of additional SEQRA review to start serving New Yorkers faster. Type II projects will include clean water infrastructure projects that avoid impacts on natural resources, green infrastructure and nature-based storm water management, public parks and recreational bike and pedestrian paths on previously disturbed land, and new or renovated child care centers on previously disturbed land.

The proposal will reserve these fast-track environmental review processes for only those projects proceeding in previously disturbed areas, meaning areas that have already been developed or improved, which provides the dual benefit of protecting our natural resources and undisturbed lands, while strengthening our neighborhoods. In addition, the governor is directing the New York Power Authority (NYPA) and the New York State Energy Research and Development Authority (NYSERDA) to update their regulations to facilitate and speed up the deployment of clean energy projects.

In connection with the EXPRESS NY initiative, this past October state agencies were directed to identify outdated or obsolete regulations and policies. In this initial phase, agencies identified nearly 100 potential regulations and practices in need of reform, modernization or elimination. Opportunities to cut red tape that state agencies have identified include: removing unnecessary fees for small businesses, expediting occupational licensing renewals for workers, digitizing paper-based processes, rescinding unenforced and out of date regulations, and reducing burdensome and unnecessary reporting requirements.

Now, the state has launched a new portal (https://forms.ny.gov/s3/how-can-we-make-new-york-state-work-better-for-you for New Yorkers to identify regulations, policies, and practices that add unnecessary process, undue burden, or are simply out of date. The call for ideas will be open until April 3.

Specific areas of focus include recommendations that will:

• Speed up housing and infrastructure development by addressing obstacles that slow down our ability to build affordable housing and other infrastructure New Yorkers depend on: transportation, child care centers, water infrastructure, parks, community centers and more.
•  Support small businesses by tackling burdensome requirements and fees that make it difficult for businesses to launch, serve customers, or grow.
• Streamline access to services by simplifying complicated processes or removing unnecessary hurdles that prevent families from accessing benefits and services that New York State supports or oversees (e.g., healthcare, child care, nutrition, mental health).

The governor has also appointed a new Associate Director of Regulatory Reform in the Executive Chamber to help oversee this effort. Over the coming weeks, state officials will be meeting with small business owners, community leaders, localities, industry experts, and other key stakeholders to hear from them about burdensome regulations.