SEQRA Talks Drop Wage Rule, REST Act Pushback

12 minutes read

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Hi there, let’s get into today’s news at the intersection of policy and real estate:

Albany is still deadlocked over SEQRA reform in state budget negotiations. But the Assembly is backing off on a controversial provision.
Upstate real estate interests are mobilizing against a bill that would make it easier to expand rent regulation beyond New York City.
Tenant organizing bill gains traction in the Assembly.

In this edition we mention: Assembly Speaker Carl Heastie, State Sen. Brian Kavanagh, Assembly member Sarahana Shrestha and others.

We Heard

SEQRA negotiations: Albany leaders are still haggling over Gov. Kathy Hochul’s push to streamline environmental reviews for major housing projects. But the State Assembly appears to be backing off on a key flashpoint: a prevailing wage mandate for fast-tracked developments that rattled policy circles and drew pushback. “It was put on the table, but it’s been taken off the table,” Assembly Speaker Carl Heastie told reporters this week. Two people familiar with the conversations said Hochul resisted tying wage standards to the review reform. The provision also hasn’t gained much traction with Senate leadership. The shift, if it sticks, is a win for developers eyeing faster approvals without a hit to construction labor costs.
Push to put the REST Act to rest: Upstate real estate interests are mobilizing against a bill that would open the door to rent regulation beyond New York City. Dubbed the Rent Emergency Stabilization for Tenants, or REST Act, the measure from State Sen. Brian Kavanagh and Assembly member Sarahana Shrestha would make it easier for localities to adopt rent stabilization. It’s currently drawing fire from landlord and business groups, including the New York Capital Region Apartment Association, Western New York Property Owners Coalition and the Buffalo Niagara Partnership, which have been lobbying lawmakers behind the scenes, according to state disclosures. The pushback underscores industry anxiety over the prospect of new regulations creeping into upstate markets. The bill is moving through committees in both chambers, with Kavanagh calling it a priority this session. Shrestha says support has grown since last year’s rollout. Still, don’t expect quick action: Albany is consumed with state budget negotiations, leaving little room for anything else until that’s settled.
Tenant organizing bill gains ground: A bill to bolster tenant organizing in multifamily buildings is advancing in the Assembly, its furthest progress since its 2023 debut. Sponsored by Assembly member Ana Kelles, the measure has cleared the housing committee and now sits on the floor calendar, teeing it up for a full vote. The proposal would let tenants meet in common areas without fees, invite outside guests like elected officials or attorneys and shield organizers from harassment. Landlords, in turn, would have to designate a point of contact and attend at least one tenant meeting every six months if asked. It’s worth watching if the bill builds momentum as a barometer for the more sweeping Tenant Power Act from State Sen. Julia Salazar. A Senate companion bill, backed by State Sen. Rachel May, is still in committee.

Have a tip or feedback? Reach me at caroline.spivack@therealdeal.com.

Bill Tracker

Bill Number	Lead Sponsor(s)	Summary	Committee	Last Action Date / Status	Next Scheduled Event
S4659/ A4877	State Sen. Brian Kavanagh /Assembly member Sarahana Shrestha	Would make it easier for localities to enact rent regulation outside of New York City	Referred to Senate finance committee, Assembly housing committee	April 7	None yet
A1535/S1557	Assembly member Ana Kelles/ State Sen. Rachel May	Would empower tenant organizing in multifamily buildings	Ordered to third reading calendar on the Assembly floor.Referred to Senate Judiciary Committee	April 23	Eligible for debate and a full Assembly vote

The Catch-Up

Based on five findings of harassment, the Mamdani administration says thousands of landlords should be denied building permits — unless they pass an intensive background check that takes seven months, writes The Real Deal columnist Erik Engquist.

Billionaire Ken Griffin is appalled that Mayor Mamdani used his ritzy Manhattan penthouse last week as the backdrop for a tax-the-rich video, triggering a subtle threat to re-evaluate his firm’s investment in the city, reports the Wall Street Journal.

Former Mayor Eric Adams agreed to a deal with Related Companies to have taxpayers finance a $2 billion platform over a Manhattan rail yard to support mostly luxury housing. But Mayor Mamdani is signaling that he’s iffy on the project, reports the New York Times.

The Kicker

“We are willing to stick our necks out here and say that we’re for it,” said Assembly member Emily Gallagher, on the need to pass a constitutional amendment to fix the budget process as policy negotiations drag on to more than three weeks past the April 1 deadline.