New York is taking a crack at reforming its environmental review process.
Gov. Kathy Hochul wants the state to change what projects are subject to the State Environmental Quality Review Act, or SEQRA.
As is often the case with the State of the State addresses, Tuesday’s was light on details about this proposal. We’ll probably have to wait until next week, when the governor is expected to roll out her executive budget proposals, to get into the weeds on what she envisions. (Unless someone wants to leak some bill language?)
A spokesperson for the governor indicated that the proposal seeks to exempt a majority of housing projects from environmental review, confirming a Wall Street Journal report from Monday night.
That’s more in line with Sen. Rachel May’s bill, dubbed the Sustainable Affordable Housing and Sprawl Prevention Act and first introduced in 2021, which would exempt affordable housing projects with fewer than 1,000 units from SEQRA. “Affordable,” under the measure, would be defined by the state’s housing regulator.
Hochul’s proposal goes further, seemingly including market-rate housing and certain infrastructure projects.
Environmental review reform has long been on the list of Yimby asks in New York. In the past two years, that list has gotten shorter, as the residential floor-area-ratio cap, parking requirements, member deference, accessory dwelling units, the 50 percent test for Low-Income Housing Tax Credits and other policies have been crossed off the list (some with asterisks indicating more change is needed).
Hochul’s environmental review reform push comes after California exempted infill housing from its state environmental review process. The Senate approved May’s bill last year, but the Assembly didn’t follow suit. Whether Hochul can get the legislature on board with reform this year remains to be seen.
New York’s recent attempt to follow California’s lead on another Yimby policy, a version of builder’s remedy, failed in 2023. Hochul hasn’t revived the proposal, sticking instead with an opt-in carrot-over-stick approach that ties state funding to localities passing pro-housing policies.
What we’re thinking about: Did the Verizon outage affect your ability to work on Wednesday? Disrupt any deals? Send a note to/commiserate with me at kathryn@therealdeal.com.
A thing we’ve learned: New Jersey Gov. Phil Murphy vetoed a bill that would have made it easier for localities to import woodchucks from other states as part of Groundhog Day celebrations, citing risk of introducing new strains of rabies, the New York Times reports. The veto means Milltown’s Groundhog Day celebration will once again be without a main attraction.
Elsewhere in New York…
— More than 10,000 Verizon customers in New York City lost cellphone service as the company experienced a nationwide outage, Gothamist reports. “We are aware of an issue impacting wireless voice and data services for some customers,” the company posted on social media. “Our engineers are engaged and are working to identify and solve the issue quickly.”
— City Council Speaker Julie Menin plans to tap Council member Nantasha Williams as deputy speaker and Council Member Shaun Abreu as majority leader, City & State reports.
— ICYMI, Gov. Kathy Hochul’s policy agenda this year includes a proposal to scrap an outdated state law that bars dancing in restaurants.
Closing Time
Residential: The top residential deal recorded Wednesday was $5.8 million for a 2,800-square-foot condominium unit at 171 West 57th Street in the Plaza District. Alexander Glibbery with We R New York had the listing.
Commercial: The top commercial deal recorded was $53 million for a development site at 75-83 Nassau Street in the Financial District. Lexin Capital sold the land to Montgomery Street Partners.
New to the Market: The highest price for a residential property hitting the market was $23.5 million for an 8,159-square-foot townhouse at 146 Waverly Place in the West Village. The Hudson Advisory Team at Compass has the listing.
Breaking Ground: The largest new building permit filed was for a proposed 99,411-square-foot, 16-story mixed-use project at 918 Atlantic Avenue in Prospect Heights. Christopher Fogarty of Fogarty Finger filed the permit on behalf of Elie Parente of EMP Capital Group.
— Matthew Elo