US DOT Awards $50M for Projects Surrounding TOD and More

The U.S. Department of Transportation (DOT) is awarding $49.46 million in grants to 45 local, regional, and state public entities through the Innovative Finance and Asset Concession Grant Program (IFACGP), made possible by the Bipartisan Infrastructure Law (BIL).

More than 70% of the projects include transit-oriented development (TOD) and downtown redevelopment initiatives, including projects that support the Biden-Harris Administration’s efforts to boost housing supply and lower costs.

DOT’s IFACGP

The program makes $100 million available over five years to help public entities scan existing assets to unlock value from them and explore innovative financing and delivery opportunities through, e.g., the Build America Bureau’s Transportation Infrastructure Finance and Innovation Act (TIFIA) low-cost loan program.

Awards can be up to $2 million, with no match required for the first million dollars.

“Today’s announcement is what the Investing in America Agenda is all about,” said Acting Undersecretary of Transportation for Policy Christopher Coes. “Not only will this funding lead to greater access, opportunity, and economic growth through good transportation infrastructure, but it will catalyze the development of safe, affordable housing in communities across the country.

Building America

The Build America Bureau administers the financing program, which provides technical assistance and expert services grants. View the interactive map to learn more about the selected projects.

Several examples of grant recipients include:

• Capital Metro (CapMetro) in Austin, Texas, will use $1 million in IFACGP funding to explore an Equitable TOD pilot site. Building off their experience completing the Plaza Saltillo development, CapMetro will evaluate multiple sites and create a pipeline of future TOD opportunities.
• Merced County, Calif., is producing a blueprint to modernize and expand the operational capacity of the Castle Commerce Center Inland Port, a 1,912-acre multimodal freight transportation hub located less than 100 miles from the ports of Oakland and Stockton. With $450,000 of IFACGP funds, the County will partner with expert advisors to identify financing and private sector investment opportunities.
• The City of New Rochelle, N.Y., will use $1 million in IFACGP funds to scan city-owned assets to determine future TOD projects that will promote economic revitalization opportunities and reconnect disadvantaged communities.
• Rhode Island Public Transit Authority (RIPTA) is working to reimagine its Kennedy Plaza outdoor bus hub into a modern mixed-use development that includes a new transit center, housing, and commercial development. With $2 million from IFACGP funding, and $1 million contributed by RIPTA, this $3 million study will position RIPTA to engage private sector developers to deliver the project.

The technical assistance grant recipients will use the funding to enhance their organizational capacity and advance a portfolio of assets by conducting pre-construction tasks, such as asset scans, market studies, delivery option analyses, financial modeling, and other activities considering innovative finance and delivery, including asset concessions.

The expert services grant recipients will use the funding to hire advisors to analyze a specific existing asset for innovative financing and delivery opportunities, including public-private partnerships.

Continuing Funding through the BIL

The IFACGP awards are the latest action by the Biden-Harris Administration to explore innovative finance and delivery options for public entities, create more housing to lower costs for Americans, and support communities with technical assistance.

In addition to the IFACGP announcement:

• Last month, DOT’s Build America Bureau released new guidance to help potential borrowers access TOD financing, including FAQs and recorded webinars.
• Earlier this year, DOT announced funding for 112 under-resourced communities to receive hands-on assistance to secure federal infrastructure funding and then deliver on those projects.
• Last fall, the Biden-Harris Administration announced new actions to support the conversion of high-vacancy commercial buildings to residential use through new financing and technical assistance.

The new IFACGP program joins the Rural and Tribal Assistance Pilot Program, Regional Infrastructure Accelerators Program, Thriving Communities Program, and other technical assistance opportunities at DOT that seek to ensure communities have the tools they need to access federal funding and financing for transformative infrastructure projects.