The U.S. Department of Transportation's Federal Transit Administration (FTA) has announced the availability of nearly $10.5 million in competitive grant funds for agencies to plan transit-adjacent development. The FTA's Pilot Program for Transit-Oriented Development (TOD) Planning aims to support local planning and investment near transit hubs, focusing on projects that plan for affordable housing.
Funded by the Bipartisan Infrastructure Law, TOD integrates public transportation, land use, and housing to create communities that are walkable and connected to transit. This planning initiative seeks to reduce transportation costs for American families and decrease their carbon footprint by improving access to jobs and services via transit.
"Many Americans spend almost half of their monthly budget on housing and transportation costs – so we’re taking steps to bring those costs down," said U.S. Transportation Secretary Pete Buttigieg. "The funding we're announcing today will support developing affordable housing closer to public transportation — helping lower the combined cost of housing and transportation for Americans."
Since FY 2015, FTA’s TOD program has allocated nearly $122 million to assist approximately 150 communities in planning new opportunities around transit. Previous recipients have used these funds for various innovative projects, such as Raleigh, North Carolina's efforts to transform the area around the Raleigh Union Station bus terminal into a neighborhood with diverse housing options.
In FY 2023, FTA prioritized projects that included affordable housing options by providing 100% of the necessary funds rather than requiring a 20% local funding match.
"The Biden-Harris Administration is committed to giving more Americans the opportunity to find a home they can afford and transportation solutions that fit their lives," said FTA Acting Administrator Veronica Vanterpool. "By choosing projects that focus on affordable housing, FTA is proving to communities all over the nation that if you are willing to find new ways to create great housing opportunities, we are here to support you."
The Pilot Program for TOD Planning funds comprehensive or site-specific planning efforts aligned with the Biden-Harris Administration’s goals of lowering costs for American families, combating climate change, and promoting equitable benefits delivery to underserved communities. This round of TOD grants will also support the Administration's Housing Supply Action Plan by giving special consideration to applications promoting housing affordability.
Applications from areas with lower population density or average income compared to surrounding areas will receive a higher federal funding share; those with a substantial focus on affordable housing may receive up to 100% federal support.
Eligible applicants must be existing FTA grant recipients—either project sponsors of an eligible transit project or entities with land use planning authority in the project corridor—and must collaborate with land use planning authorities. More information is available on FTA's TOD webpage. The application period closes on July 22, 2024.
