Naturally rot resistance species are accepted by the NYS code (and in Woodstock.) I reviewed some timber frame drawings for a fellow in Columbia County with a dry laid stone foundation. When finished with the stone work he called for his foundation inspection and the Building Inspector stood there scratching his head. He then signed off on it, and the rest was history. I think if you use a mortared wall you could even get away with it in Wdstk. Anchoring the sills to the foundation with embedded anchor rods would be required.
