Guidance for Exemption of Certain Housing Projects from Environmental Review

As discussed in our previous client memorandum, legislative changes in connection with the New York State Fiscal Year 2026-2027 budget exempt certain housing projects from the State Environmental Quality Review Act (SEQRA) and, in turn, City Environmental Quality Review (CEQR). On July 10, 2026, the NYC Mayor's Office of Environmental Coordination issued guidance on the criteria for exemption in a memorandum titled "Qualified Action Guidance - Housing Actions." The guidance includes the following:

• The thresholds of 250 units (in lower-density districts) and 500 units (in higher-density districts) apply to the increment of units proposed as a result of the action.
  
  
• In order to assess this increment, applicants will be required to submit a Reasonable Worst-Case Development Scenario memo/analysis or similar assessment.
  
  
• Areas "zoned exclusively for industrial use," in which the exemption does not apply, include M2 and M3 zoning districts. The exemption is available in other districts permitting industrial use, such as M1 and C8 districts.
  
  
• With respect to hazardous materials, actions initiated by private applicants must comply with certain requirements that would otherwise be applicable under CEQR, including completion of a Phase 1 Environmental Site Assessment and, as appropriate, the placement of an E-Designation.
  
  
• Fees for the exemption application process are still being established.

The exemption is expected to reduce the time and expense of processing discretionary actions such as zoning changes and bonus applications.

Please contact us with any questions.

This communication is for general information only. It is not intended, nor should it be relied upon, as legal advice. In some jurisdictions, this may be considered attorney advertising. Please refer to the firm's data policy page for further information.