FTA Issues Guidance for Transit Joint Development Projects
Projects involve the construction of commercial, residential, or mixed-use projects near transit or on transit system-owned land.
The Federal Transit Administration (FTA) announced new guidance that increases flexibility for transit agencies to work with developers to build projects that benefit transit systems and their communities. A notice about the new guidance appears in the Federal Register.
“We are committed to supporting transit agencies that pursue joint development projects to capture the economic value of transit,” said FTA Deputy Administrator K. Jane Williams. “Innovative partnerships and funding sources can help deliver projects more quickly, and this is especially important as communities recover from the COVID-19 public health emergency.”
The FTA Guidance on Joint Development (FTA Circular 7050.1B) updates previous guidance and becomes effective immediately. In addition to increasing flexibility for transit agencies that receive FTA funding to pursue joint development projects, the guidance reduces FTA involvement in joint development agreements negotiated between project sponsors and their partners, streamlines FTA’s project eligibility review process, and clarifies prior guidance.
Joint development projects involve the construction of commercial, residential, or mixed-use projects near transit or on transit system-owned land. The public and private investments are coordinated between transit agencies and developers to build the project, producing a revenue stream for both the developer and the transit agency.
The new guidance will encourage projects that contribute to the nation’s economic recovery from the COVID-19 public health emergency, according to the FTA. The new flexibility for joint development projects supports the U.S. DOT’s commitment to follow the Executive Order on Accelerating the Nation’s Economic Recovery from the COVID-19 Emergency by Expediting Infrastructure Investments and Other Activities.
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