AASHTO Journal - FTA Awards Several Transit Oriented Development Grants

The Federal Transit Administration recently awarded nearly $10.5 million in grants to support the development and preservation of affordable housing near public transit in communities across the country.

[Above photo by FTA]

Issued through the agency’s Transit-Oriented Development or TOD planning pilot program, that funding will support 11 projects in 10 states and plays a key part in the Biden administration’s Housing Supply Action Plan by helping communities encourage public transportation ridership by developing housing and businesses near key transit corridors.

FTA noted in a statement that its TOD program seeks to create more opportunities for people to easily access rail and bus rapid transit stations, transit centers, and bus stops. The pilot program also increases access for people with disabilities who are transit dependent, especially those who need transportation to get to work.

The agency noted that, since 2015, it has issued approximately $133 million in federal support to fund TOD planning activities in 36 states. FTA added that that this is the third round of TOD planning grants (see here, here, and here) since the enactment of the Infrastructure Investment and Jobs Act or IIJA in 2021, legislation that boosted TOD program funding by $68.9 million or 38 percent.

The Maryland Transit Administration – a division of the Maryland Department of Transportation – and the University of Maryland will receive $1.6 million TOD grant vis this round of funding to create a plan focused on retaining homes and small businesses along the Maryland Purple Line light rail system.

The plan will include strategies to address displacement caused by the new light rail line, currently under construction in Montgomery and Prince George’s Counties, in low-income areas to maintain housing affordability, green space, and environmental amenities.

[Editor’s note: the Maryland Transit Administration also recently noted that its riders can now purchase CharmPass fares directly through the popular Transit mobile application for trips taken on local bus, commuter bus, subway, plus light rail and commuter trains. Riders can now both plan their trip and seamlessly access their mobile tickets in one convenient location, the agency said.]

Meanwhile, Maryland DOT – in partnership with the Maryland Economic Development Corporation or MEDCO – has launched a new joint strategy to spur development along the Maryland Area Rail Commuter or MARC Penn Line; laying out a vision for denser, mixed-use communities around transit hubs between Washington and Baltimore.

The agency said this new transit-oriented development or TOD plan provides a “blueprint” for unlocking economic opportunities at six train stops within the MARC’s Penn Line corridor. The plan offers the potential to create at least 2,600 new housing units, generate some $1.7 billion in annual retail sales, and yield more than $800 million in tax revenue for the state over the next 30 years.

Other state departments of transportation are also working on TOD-related initiatives.

For example, in August 2023, the North Carolina Department of Transportation issued a study that explores the potential for TOD projects along the S-Line rail corridor, which is a key missing link between Raleigh, NC, and Richmond, VA – a corridor that aims to improve rail connections between the Southeastern U.S. and Washington, D.C., and places further north.

That examines how passenger rail service along the S-Line would leverage benefits for improved mobility and access for communities along that corridor; such as increased housing, downtown vibrancy, higher quality of life, and economic vitality, the agency pointed out.