Hochul Unveils 'Let Them Build' Agenda With Regulatory Rollback, Rent-Stabilized Tax Break

In her State of the State address Tuesday, Gov. Kathy Hochul announced a new policy platform aimed at slashing red tape to speed up the construction of housing. 

Dubbed the “Let Them Build” agenda, the proposal largely revolves around reforms to the State Environmental Quality Review Act, allowing certain housing projects to bypass the lengthy review process. 

“When communities say yes to housing, infrastructure, clean energy, we're going to let them build,” Hochul said onstage in Albany. “And when a town or city decides to move forward, they should not get stuck in regulatory hell.”

To be eligible, developments would have to be located outside of flood risk zones, compliant with zoning and located on previously disturbed land, already connected to water and sewer systems. In New York City, there would be a cap on the size of buildings that can avoid SEQRA review. 

A study by New York City and New York State Homes and Community Renewal found that “virtually none” of more than a thousand housing projects that have undergone SEQRA review had significant environmental impacts. The developers nonetheless had to undergo the process, which takes an average of two years.  

“Far too often, SEQRA is weaponized to delay or even block housing development, especially affordable housing and other important projects that local communities support,” the policy book that was released alongside her speech says.

The proposal mimics a similar bill in California that exempts infill projects from undergoing procedures required by the California Environmental Quality Act. The reform, which was approved by Gov. Gavin Newsom as part of the 2025-2026 state budget, was hailed in some corners as pushing the “abundance agenda.”

Hochul additionally seeks to allocate $250M to accelerate affordable housing development and $100M to scale manufactured housing. The infusion would build upon her five-year, $25B housing plan, introduced in 2022. 

The governor also acknowledged challenges faced by landlords of rent-stabilized properties while promising to further crack down on bad actors and strengthen tenant protections.

“We'll also update our tax incentives to help owners of rent-regulated buildings in New York City make the repairs and investments to get more housing stock online,” Hochul said. 

She is proposing an overhaul of the J-51 tax abatement, which incentivizes major building upgrades in exchange for units becoming or staying rent-regulated. The program, first created in the 1950s, has more recently “faced administrative challenges that have reduced uptake,” according to the policy book. 

In a statement following Hochul’s speech, New York Apartment Association CEO Kenny Burgos said that the incentive won’t be enough to preserve New York’s aging rent-stabilized housing stock.

“No building can take out a loan on the promise of a tax break, so this will do nothing to help more than 300,000 apartments in buildings that are already functionally bankrupt,” Burgos said.

The agenda also focuses on insurance costs, which have risen sharply for landlords. The cost of insurance per unit for affordable owners jumped from $712 to $1,495 between 2017 and 2024, according to a study by nonprofit affordable housing providers National Equity Fund and Enterprise Community Providers.

To address the issue, Hochul wants to require property insurers to report core data metrics on multifamily housing, including claims, premiums and rates. The reports, which would be made public, would allow the state to determine how to target rising costs.

The governor is also looking to expand rent freeze programs for seniors and people with disabilities living in rent-stabilized apartments and Mitchell-Lama affordable housing. The programs, known as the senior citizen rent increase exemption and disability rent increase exemption, provide property tax credits to offset rent increases. 

In New York City, income eligibility limits for the programs would increase from $50K to $75K. Other areas of the state would be able to opt in to the changes.

In his statement, Burgos said that NYAA fully supports the eligibility increase, but he encouraged “a more concerted effort from the government to get families signed up.”

Hochul’s 2026 agenda does not, however, touch on the Housing Stability and Tenant Protection Act of 2019, which severely limited landlords’ ability to raise rents, causing property values to plummet. Landlord advocates have repeatedly asked the state to reevaluate the package of laws, which they claim has prevented them from being able to reinvest in their buildings and pushed landlords into financial hardship.

“We are disappointed that the Governor has failed to recognize the scale of distress in rent-stabilized housing,” Burgos said. “Her proposals do not meet the current emergency that is gripping New York City.”