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If a joint development project includes community service or publicly-operated facilities, or affordable housing, is it subject to the “fair share of revenue” minimum threshold?

When a joint development includes a community service or publicly-operated facility, or affordable housing, FTA recognizes that the revenue generated may be less than what would be generated from a market-rate commercial, residential, or mixed-use development. As such, the resulting fair share of revenue can be less than the amount of the original FTA investment, but must be based upon the actual revenue generated by the project. While the proportion of the project that is community service or publicly-operated facilities, or affordable housing can be less than the amount of the original FTA investment in the project, the revenue the project sponsor receives from the proportion of the project that is market rate is subject to the minimum threshold, defined above.

Example (continued from https://www.transit.dot.gov/faq/joint-development/how-minimum-threshold-...): If the proposed joint development is 75% market rate housing and 25% affordable housing, the minimum threshold for a fair share of revenue is $750,000.

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