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Referendums in New York: Voters back faster building permits and red tape reduction

New York voters have approved five ballot proposals that accelerate building permits, facilitate the sale of city-owned land, and simplify procedures for outdoor dining.

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Referendums in New York: Voters back faster building permits and red tape reduction. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

In New York City, voters on Tuesday approved five referendum proposals initiated by the administration of Mayor Zohran Mamdani. The measures aim to noticeably accelerate building permits and urban development projects, as well as deregulate permitting procedures for outdoor dining. While national coverage was heavily dominated by election results in other US states, commercial developers and operators in New York City are set to see tangible relief.

A large part of the new regulations for outdoor dining will take effect as early as 1 March, while provisions regarding land sales and development projects along waterfronts will come into force on 31 December 2030. Mitchell Korbey, partner and chair of the land use and zoning practice group at the law firm Herrick, particularly welcomed Proposals 3 and 4. He noted that these were designed to streamline safety reviews, speed up the disposal of city-owned land, and significantly simplify approval processes for construction projects.

Centralisation of responsibilities at the Department of Buildings

Korbey stressed that the new regulations would unlock potential previously obstructed by the lengthy Uniform Land Use Review Procedure (ULURP). Transferring powers to the Department of Buildings (DOB) under Proposal 4 creates a far more efficient review process, providing developers with greater planning certainty and substantial time savings. Previously, project developers had to submit documents to various agencies across separate systems; in future, the DOB will serve as a single point of contact. Waterfront permits, which were previously handled by the Department of Small Business Services, will also transfer to the DOB.

Mayor Zohran Mamdani, who had campaigned for the adoption of the measures ahead of the vote, stated after the ballot that citizens had voted for an administration that matched the pace of the city. By removing bureaucratic hurdles in housing construction as well as traffic safety projects, the affordability crisis in the metropolis is to be tackled. The priority now is to translate the decisions into concrete results.

Relief for city-owned land and dining spaces

Proposal 1 aims to simplify the use of public space. Hospitality operators will no longer have to undergo multi-stage reviews by the Department of Transportation or the Office of Technology and Innovation. Hearings before local community boards or the City Council are eliminated; a single regulatory approval will suffice in future. Local council members will also lose the right to veto such permits.

Proposal 3 allows the city administration to sell or lease smaller city-owned plots more quickly and to transfer development rights for listed properties more swiftly. Instead of the seven-month ULURP process, an expedited review procedure (ELURP), originating from initiatives by former mayor Eric Adams, will now apply. James Whelan, president of the Real Estate Board of New York, welcomed the voters' decision and emphasised the desire to work alongside newly elected representatives to advance measures that stimulate housing construction and strengthen New York's economy.

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