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...

Can joint development revenue be used for local transit capital or operating expenses, or local match for an FTA capital project?

In most cases, yes.

If a joint development involves the use of property previously acquired with the assistance of an FTA award for which the period of performance has ended, the project sponsor can use the revenue as program income and apply it to any transit capital or operating expense...

What is a baseline market analysis and what analyses are required for an FTA-assisted joint development project?

A baseline market analysis evaluates the viability and expected outcomes of a joint development. As with any business transaction, a project sponsor should fully understand its relative position in participating in local/regional economic development activity and in negotiating the terms of the...

How do I protect the federal interest and maintain continuing control of FTA-assisted property through a joint development agreement?

Joint development agreements that convey FTA-assisted property must ensure that the transit access and use are not restricted and that access to the real property for its original transit purpose will be maintained. Furthermore, the agreement should ensure that all other pertinent FTA...

How can I use real property previously acquired with FTA assistance for joint development?

Historically, FTA prohibited the encumbrance of title to FTA-assisted property because FTA viewed any lien against, or other conveyance of, FTA-assisted property as a disposition. In recognition of the fact that many joint development arrangements require conveyance of an interest in FTA-...

My joint development project includes a school, hospital, or retirement community – does that make it a community service facility?

Not in all cases.

A “community service facility” is a facility that provides day care, career counseling, literacy training, education (including tutorial services), recreation, outpatient health care, or a similar service to local residents either free of charge or for an affordable fee.[...

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...

How is the minimum threshold for a "fair share of revenue" calculated?

Project sponsors and other joint development participants determine the amount of revenue expected to be generated by the project and negotiate the share of that revenue the project sponsor will receive, taking into consideration the type of project and priorities that the project sponsor and/or...

How do I demonstrate an “economic benefit” or a “transit benefit” to FTA’s satisfaction?

While FTA does not set a threshold for satisfying the Economic Benefit or Transit Benefit criteria, it does require project sponsors to demonstrate that the joint development meets the criteria. FTA may decline approval for a joint development if the project sponsor does not sufficiently address...

What are the eligibility criteria for FTA-assisted joint development projects?

Joint development projects are eligible for FTA funding if they meet the following eligibility criteria:

Criterion 1 – Economic Benefit: Projects must either generate a positive economic impact in the community surrounding a transit facility or incorporate private investment to help pay...