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Which joint development capital expenses are eligible for FTA funding?

Certain capital costs associated with joint development activities are eligible for FTA assistance. Some of these activities are included in the various definitions of capital project at 49 U.S.C. 5302(3). Activities not designated under 49 U.S.C. 5302(3)(G), joint development, must be associated with a project that has been identified through the transportation planning process. Circular 7050.1A provides a list of common eligible capital expenses on page III-7. In general:

  • Property acquired with FTA funds can be:
    • sold or leased to a developer to build residential, commercial, or mixed-use development, and
    • used as collateral for debt financing of development activities or used in other innovative financing arrangements;
  • FTA capital funding can be used to:
    • pay for certain activities associated with, and in support of, the construction of residential, commercial, or mixed-use development, including but not limited to:
      • buy land and relocate existing residents and businesses,
      • demolition of existing structures,
      • improve or relocate utilities,
      • build foundations, or
      • site preparation;
    • build walkways and bike lanes between the development and transit,
    • construct, renovate and improve intercity bus and rail stations, other historic transportation facilities, or intermodal transfer facilities or transportation malls,
    • make open space and streetscape improvements, including transportation-related furniture, fixtures, and equipment, such as benches and shelters,
    • construct community service facilities, such as day care, career counseling, literacy training, education, recreation, or outpatient health care, etc.,
    • build space within a transit facility for commercial uses,
    • build or improve transportation-related parking,
    • and more;

This broad eligibility can result in dynamic, mixed-use spaces with retail or community services, all closely connected to existing or planned transit facilities, in addition to the revenue- and cost-sharing arrangements of benefit to transit agencies.

Updated: Wednesday, October 4, 2017
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