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Financing Equitable Transit-Oriented Development

Transit-oriented development, or TOD, is a type of walkable community development that includes a mixture of housing, office, retail and/or other amenities located near quality public transportation. This presentation identifies successful approaches to financing equitable TOD across the United States.

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Financing Equitable Transit-Oriented Development

  1. 1. Financing Equitable TOD – Overview Eric Rothman President HR&A Advisors, Inc. October 27, 2015
  2. 2. Financing Equitable TOD - Overview: Eric Rothman Infeasible LOSS COST REVENUE Equitable TOD aligns affordable housing with TOD, both of which face development feasibility challenges. Cost of land assembly Example Policy Barriers Cost of brownfield remediation Commuter parking requirements Public realm requirements Example Market Barriers ETOD
  3. 3. Financing Equitable TOD - Overview: Eric Rothman While there is overlap, affordable housing and transit policies are generally organized at different levels of government. Housing Transit / TOD Housing Policy Federal, state, and local levels Housing Financing Programs Primarily state, and sometimes local Transit Operators Primarily regional and local TOD Financing Primarily regional and local, sometimes state
  4. 4. Financing Equitable TOD - Overview: Eric Rothman There are a number of public policies and programs available to support the development of ETOD. Policies + Programs • Density Bonuses linked to Mandatory Inclusionary Housing • Low Income Housing Tax Credit (LIHTC) • Low-Cost or Forgivable Loans; Grants o Example: Denver’s TOD Fund provides low-cost loans that have helped preserve or create 626 affordable homes as of 2013 • Tax Exemptions & Abatements o Example: The Transit-Oriented Development Property Tax Abatement Program in Portland, Oregon reduces operating expenses on affordable properties near TOD for 10 years • Affordable Housing Trust Funds o Example: Los Angeles’ AHTF contributed $21 million in 2008 to support the development of 225 affordable housing units near TODs • Tax-Exempt Bond Financing • Tax Increment Financing (TIF) o Example: Sacramento, California supported 114 low-income senior apartments near TOD through $6 million in TIF • Reduced parking requirements • Community Development Block Grants (CDBG) • Transfer of Development Rights (TDR) o Example: Arlington County, Virginia used TDR along Columbia Pike to preserve over 600 housing units since 2012
  5. 5. Financing Equitable TOD - Overview: Eric Rothman Source: National Housing Trust & Abt Associates Across the nation, State housing agencies that factor transit-access into LIHTC allocation decisions more than doubled from 17 to 35 since 2003. 0 5 10 15 20 25 30 35 40 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of States with a Policy Preference for TOD Proximity when making LIHTC Allocations
  6. 6. Financing Equitable TOD - Overview: Eric Rothman This alignment of housing finance and transit facilitates ETOD in many states with legacy and growing transit systems. Source: National Housing Trust & Abt Associates States with a Policy Preference for TOD Proximity when making LIHTC Allocations
  7. 7. Thank You Eric Rothman President, HR&A Advisors, Inc. erothman@hraadvisors.com www.hraadvisors.com

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