Will the state budget blunt lawsuits that block housing?

"The city doesn't lose these things easily, but the time can kill projects. As a project is halted by litigation, interest rates can rise, financing can dry up and the market for ground-up development can otherwise turn hostile. Planned towers in Two Bridges, for example, were delayed by various lawsuits for years, including some that challenged the legitimacy of the projects' environmental review."

"A proposal to reform SEQRA could rebuff such legal challenges. As part of her executive budget, Gov. Kathy Hochul proposed exempting housing projects in New York City from the lengthy environmental review process. Lawsuits could still be filed, of course, but opponents would potentially have a harder time making their case if exemptions are codified in state law."

"New York enacted SEQRA in 1975 to ensure a project's environmental impact was weighed alongside its potential economic and social effects. Such reviews consider things like greenhouse gas emissions, potential shadows cast by a project, the strain on local infrastructure, air quality, traffic and noise."

Opponents of New York City's housing development policies have repeatedly used the State Environmental Quality Review Act (SEQRA) to challenge zoning changes and housing approval measures through lawsuits. While the city typically wins these cases, litigation delays damage projects by allowing interest rates to rise, financing to disappear, and market conditions to deteriorate. Governor Hochul's executive budget proposal would exempt housing projects in NYC from SEQRA's lengthy environmental review process, making it harder for opponents to file successful legal challenges. Although lawsuits could still occur, codifying exemptions in state law would reduce their effectiveness. Projects like Two Bridges towers have experienced years of delays from SEQRA-based litigation despite ultimately prevailing in court.

Read at therealdeal.com