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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Biden-Harris Administration Announces Nearly $10.5 Million Funding Opportunity to Plan Housing Near Transit

Thursday, May 23, 2024

Priority will be given to mixed-use development projects near transit stations that promote affordable housing 

WASHINGTON – The U.S. Department of Transportation's Federal Transit Administration (FTA) today 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.

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

"Many Americans spend almost half of their monthly budget on housing and transportation costs – so we’re taking steps to bring those costs down," said U.S. Transportation Secretary Pete Buttigieg. "The funding we're announcing today will support developing affordable housing closer to public transportation — helping lower the combined cost of housing and transportation for Americans." 

Since FY 2015, FTA’s TOD program has provided nearly $122 million to help almost 150 communities plan for new opportunities around transit. Past award recipients have invested funds into creative and innovative projects, such as Raleigh, North Carolina's work to transform the area around the Raleigh Union Station bus terminal to include a range of housing opportunities and create more sustainable, equitable neighborhoods. 

In FY 2023, FTA gave priority consideration for projects that included affordable housing options, including providing 100% of the funds needed to fund the project, rather than requiring a 20% local funding match.

"The Biden-Harris Administration is committed to giving more Americans the opportunity to find a home they can afford and transportation solutions that fit their lives," said FTA Acting Administrator Veronica Vanterpool. "By choosing projects that focus on affordable housing, FTA is proving to communities all over the nation that if you are willing to find new ways to create great housing opportunities, we are here to support you."

The Pilot Program for TOD Planning helps 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. This round of TOD grants will also support the Biden-Harris Administration's new Housing Supply Action Plan by providing special consideration to applications that promote 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.

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