For some reason, several states, both red and blue, like to elect children of governors to the position as well. Andy Beshear, Andrew Cuomo, Jerry Brown, Mitt Romney,...
Maybe a child of another former Arkansas Governor can run here instead of NY-17. /s
I think you might have the wrong district. NY-17 just elected a new Democratic incumbent last year, and I assume he'll run again. I also assume it's a majority-minority district (both the previous incumbent and the current one are black). I assume Chelsea Clinton would run in a (non-Hispanic) white-majority (but still Democratic) district (and with Judiasm in her husband's family at least (I'm not sure what her or her husband's religion is) the "mainline" Jewish districts wouldn't seem off the table) rather than ruffling feathers by running for a seat that many Democrats would feel belongs to another group.
New York 17th is almost 60% non-Hispanic white.