FTA opens $10.5 million in funding for TOD projects

May 24, 2024
The funding will support local planning and investment near transit hubs to promote sustainable, livable and equitable communities.

The Federal Transit Administration (FTA) has made nearly $10.5 million in competitive grant funds available 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 Infrastructure Investment and Jobs Act, TOD links public transportation, land use and housing to create communities that are walkable and connected to transit.

"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. Department of 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." 

Past award recipients of the TOD program have invested funds into creative and innovative projects, such as Raleigh, N.C.'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 Fiscal Year 2023, FTA gave priority consideration for projects that included affordable housing options, including providing 100 percent of the funds needed to fund the project, rather than requiring a 20 percent local funding match.

FTA says 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 percent 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.

The application period will close on July 22, 2024.