Hochul Pushes to Ease Environmental Laws to Speed Up Housing Developments

Cuts in state environmental laws and regulations could help with Orange County’s growing housing crisis.

Two newly constructed houses for sale in the City of Middletown, N.Y., on Feb. 20, 2023. Cara Ding/The Epoch Times

Gov. Kathy Hochul announced during her 2026 State of the State address on Jan. 13 that her administration will focus on reducing outdated red tape and regulations that are hindering New York’s building potential.

Orange County and the state as a whole are facing rising housing prices as bureaucracy and regulations make building in New York take up to 56 percent longer than in other peer states, the state government said. Longer development times also mean higher costs.

Under Hochul’s “Let Them Build” agenda, the state will aim to reform the 1975 State Environmental Quality Review Act, which requires local, regional, and state governments to evaluate the environmental impacts of projects.

“For too long, unnecessary red tape has stood in the way of new housing and critical infrastructure. If local leaders want to deliver new investments for their communities, I say ‘Let Them Build,’” Hochul said during her speech.

Affordable housing developments were found by the state to consistently have no significant environmental impacts, yet state-mandated environmental reviews of proposed developments took an average of two years, slowing down the process. A review by the New York City and New York State Homes and Community Renewal over the past five to 10 years found that more than 1,000 housing projects had caused no significant environmental impacts.

Hochul plans to propose that certain low-impact housing projects be exempt from the State Environmental Quality Review Act. The projects will still be subject to local zoning and certain environmental state regulations and permit requirements. The projects must be located outside of flood risk areas, and requirements for the projects will vary depending on where in the state a specific development is.

Housing projects outside of New York City must be on previously disturbed or improved land with preexisting water and sewer systems to avoid additional environmental reviews.

The governor will have the Department of Environmental Conservation develop uniform comprehensive reviews for common project types. Such standardization is expected to result in faster processing times. Hochul will also direct agencies involved in permitting and reviews to improve internal efficiency by adopting new technology and practices.

The state government will be dedicating $250 million to building more affordable housing in 2026.

In Orange County, median home sale prices jumped 65 percent between 2019 and 2024, while wage growth lagged behind. Housing inventory also dropped by more than half over that period.

During a meeting of the Orange County Housing Task Force Committee last March, then-legislator Leigh Benton said Orange County needed more affordable housing, particularly one-bedroom condominiums, to address the crisis.