FTA makes $13.4 million in competitive grant funding available for transit-oriented development projects

The Federal Transit Administration (FTA) is making $13.4 million in competitive grant funding available through its Pilot Program for Transit-Oriented Development (TOD) Planning. The funding will support local planning and investment near transit hubs to promote sustainable, livable and equitable communities.

TOD links public transportation, land use and housing to create communities that are connected to transit and walkable. TOD planning can reduce transportation costs for American families and reduce their carbon footprint by improving transit access to jobs and services.

"Transit-oriented development helps shape communities where you can conveniently access jobs, groceries, medical care, good schools, affordable housing and more," said United States Department of Transportation (USDOT) Secretary Pete Buttigieg. "We are all better off when there is easy access to affordable, accessible and convenient ways to get around, which is why USDOT is proud to announce this funding to support transit-oriented development."

Since 2015, FTA's TOD program has provided more than $104 million to help communities around the country plan for new opportunities around transit. Past award recipients have invested funds into creative and innovative projects, including work by Phoenix and Tempe city officials who are transforming the areas around Valley Metro streetcar and light-rail routes to expand housing opportunities and build sustainable, equitable neighborhoods.

"Transit-oriented development reduces reliance on single-occupancy vehicles, improves mobility and reduces greenhouse gas emissions and air pollution. It helps promote transit ridership by creating more opportunities for people to access rail stations, transit centers and bus stops," said FTA Administrator Nuria Fernandez. "Through this program, we will support more investments in TOD and help improve communities and people’s lives."

The Pilot Program for TOD Planning will help 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. Special consideration will be given to applications that improve air quality, advance environmental justice, support unhoused populations and promote housing affordability. This year, applications for areas with a lower population density or lower average income compared to surrounding areas will receive a higher federal funding share. Additionally, applications with a substantial focus on affordable housing may receive up to 100 percent federal cost share support. TOD grants align with the Biden-Harris Administration's Housing Supply Action Plan, which will ease the burden of housing costs over time by boosting the supply of quality housing in every community.

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 that work meets the needs of the local community, transit project sponsors and land use planning authorities must partner to conduct the planning work.

More information on the Pilot Program for TOD Planning can be found here. The application period will close on Oct. 10, 2023.