As part of Mayor Eric Adams' "Get Stuff Built" initiative to increase housing supply and reduce regulatory constraints on new development, the New York City Planning Commission approved the Green Fast Track for Housing Rule on March 20, 2024 by an 11-1 vote. The new rule, which became effective on June 3, 2024, exempts certain small and medium-sized residential developments from review under City Environmental Quality Review (CEQR) procedures.
For residential developments meeting certain density-related and site-specific criteria (as discussed further below), the Green Fast Track for Housing Rule grants an exemption from the environmental review process under CEQR, which traditionally requires applicants to submit to the City Planning Commission an environmental assessment statement (EAS) and, if deemed necessary by City Planning, an environmental impact statement (EIS). These environmental reviews can result in significant time and cost expenditures in the early stages of development.
Based on a joint analysis conducted by various City agencies, the City contends that CEQR's environmental review process for many small and medium-sized residential developments is unnecessary, given the limited environmental impacts. The joint analysis (conducted by the Department of City Planning, the Mayor's Office of Environmental Coordination, the Department of Housing Preservation and Development, and the Board of Standards and Appeals) examined housing and environmental data from 2013 to 2023 and concluded that smaller-scale residential developments generally pose little or no adverse environmental impact, provided that certain criteria are met.
The Green Fast Track for Housing Rule supplements the existing regulatory framework under CEQR by creating a new "Type II" exemption. Local government agencies like the New York City Planning Commission are empowered under the State Environmental Quality Review Act (SEQRA) to create Type II exemptions for certain low-impact developments that do not require intensive environmental review. See 6 NYCRR § 617.5(b)-(c). As long as the City can demonstrate that proposed categories of development do not result in adverse environmental impacts under SEQRA, the City is permitted to create new categories of Type II exemptions.
The Green Fast Track for Housing Rule adds certain small and medium-sized residential developments to the existing list of Type II exemptions under 62 RCNY § 5-05(c)-(d). Under this new regulatory framework, qualified residential developments can skip the process of preparing an EAS or EIS.
The list of Type II actions modified by the Green Fast Track for Housing Rule was also adopted by three other City agencies that serve as lead agency in reviewing and approving new residential developments: the Mayor's Office of Environmental Coordination (adopted rule), the Department of Housing Preservation and Development (adopted rule), and the Board of Standards and Appeals (adopted rule).
Which developments qualify for Green Fast Track for Housing?
To qualify for the Type II exemption under the Green Fast Track for Housing Rule, residential developments must meet the following density-related criteria:
- R1 (least dense) through R4 Residential Zoning Districts: The residential development must have 175 or fewer dwelling units and no more than 20,000 gross square feet of space for non-residential uses, comprised of no more than 10,000 gross square feet for commercial uses and no more than 10,000 gross square feet for community facility space.
- R5 through R10 (most dense) Residential Zoning Districts: The residential development must have 250 or fewer dwelling units and no more than 35,000 gross square feet of space for non-residential uses, comprised of no more than 25,000 gross square feet for commercial use and no more than 25,000 gross square feet for community facility space.
In certain cases, the residential development may be located in an existing commercial or manufacturing zoning district, provided that it meets certain regulatory requirements.
What other prerequisites are required for Green Fast Track for Housing?
In addition to the density-related requirements set forth above, the Green Fast Track for Housing Rule also requires developers to meet the following site-specific criteria:
- Fossil Fuel Restriction: Residential developments under the Green Fast Track for Housing Rule are not permitted to burn fossil fuels for supplying heat or hot water to the building.
- Phase I ESA: The developer must complete a Phase I environmental site assessment and obtain written sign-off from the lead City agency stating that no further environmental investigation is necessary. For sites with an (E) designation for hazardous materials, other regulatory requirements must be satisfied.
- LPC Clearance: The residential development site must receive clearance from the NYC Landmarks Preservation Commission (LPC) confirming that such site does not raise any archeological or historic preservation concerns.
- Air Quality Standards: The developer must provide confirmation to the lead City agency that the concentration of air pollutants does not exceed regulatory standards. The air quality thresholds vary based the residential development's distance from an emissions source and the type of emissions.
- Noise Level Threshold: The developer must provide sampling data to the lead City agency demonstrating that peak hour ambient noise levels fall below certain decibel thresholds, subject to certain other requirements for developments within close proximity to railways or airports.
- Construction Timeline: To qualify under the Green Fast Track for Housing Rule, the projected duration of construction at the development site (or any set of substantially contiguous development sites) must not exceed 24 months.
- Location Restrictions: The residential development site must not be located (i) adjacent to an arterial highway, (ii) adjacent to a vent structure for a tunnel, (iii) within a Special Coastal Risk District, or (iv) on a site that contains a natural resource.
- Maximum Allowable Height: The proposed structure (including all rooftop bulkheads, mechanical equipment, and parapets) must not exceed 250 feet in height. A more restrictive height restriction applies to proposed structures that are substantially contiguous to a public open space or sunlight-sensitive resource, in which case the structure must not exceed 50 feet in height.
Implementing Green Fast Track Rules
The new rule, which rewards developers with faster regulatory approval for meeting environmental standards, promotes two goals at once—environmental sustainability and housing development. In a press release issued by the City on June 3, 2024, the Green Fast Track for Housing Rule received positive feedback from a cohort of developers, environmental groups, and affordable housing advocates, signaling a rare alignment of interests among disparate stakeholders in the City's real estate market.
The Green Fast Track for Housing Rule does not override or exempt qualifying residential projects from other public review or zoning and land use procedures like the Uniform Land Use Review Procedure (ULURP). Residential developers should remain aware of other regulatory requirements that may affect a potential development site.
