The USDOT recently opened applications for $10.5 million in competitive grants for local government to plan housing near transit.
The U.S. Department of Transportation’s (USDOT) Federal Transit Administration (FTA) recently 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. TOD links public transportation, land use, and housing to create communities that are walkable and connected to transit. TOD planning can reduce families’ transportation costs and carbon footprint by improving transit access to jobs and services.
The Pilot Program for TOD Planning helps fund comprehensive or site-specific planning efforts that advance the federal government’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 federal government’s new Housing Supply Action Plan by giving special consideration to applications promoting 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.
To apply for funding, an applicant must be an existing FTA grant recipient – either a project sponsor of an eligible transit project or an entity with land use planning authority in the project corridor. To ensure TOD planning meets the needs of the local community, transit project sponsors must work with land use planning authorities. Learn more at FTA’s TOD webpage. The application period will close on July 22, 2024.
New Maryland State Density Bonus
Encouraging density around transit was a key topic in the 2024 legislative session. Starting January 1, 2025, under the Governor’s HB538, housing projects within three-quarters of a mile of transit stations that include at least 15% affordable units will qualify for a 30% state density bonus on top of existing county density allowances. USDOT grants may assist counties in planning for these new bonuses.
