The Federal Transit Administration (FTA) announced the availability of nearly $10.5 million in competitive grant funds for agencies to plan transit-adjacent development.

FTA’s Pilot Program for Transit-Oriented Development (TOD) Planning supports local planning and investment near transit hubs to promote sustainable, livable, and equitable communities, with a focus on projects that plan for affordable housing.

Impact of FTA Funding

With funding from the Bipartisan Infrastructure Law, TOD links public transportation, land use, and housing to create communities that are walkable and connected to transit.

TOD planning can reduce transportation costs for American families and reduce their carbon footprint by improving transit access to jobs and services.

“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.”

Investing in TOD

Since FY 2015, FTA’s TOD program has provided nearly $122 million to help almost 150 communities plan for new opportunities around transit.

Past award recipients have invested funds into creative and innovative projects, such as Raleigh, N.C.’s work to transform the area around the Raleigh Union Station bus terminal to include a range of housing opportunities and create more sustainable, equitable neighborhoods.

In FY 2023, FTA gave priority consideration for projects that included affordable housing options, including providing 100% of the funds needed to fund the project, rather than requiring a 20% local funding match.

Funding Eligibility

The Pilot Program for TOD Planning helps fund comprehensive or site-specific planning efforts that advance the Biden-Harris Administration’s goals to lower costs for American families, combat climate change, and promote equitable delivery of benefits to underserved communities.

This round of TOD grants will also support the Biden-Harris Administration’s new Housing Supply Action Plan by providing special consideration to applications that promote housing affordability.

Applications for areas with a lower population density or lower average income compared to surrounding areas will receive a higher federal funding share; applications with a substantial focus on affordable housing may receive up to 100% federal support.