The U.S. Department of Transportation (USDOT) recently updated guidance that clarifies the eligibility of transit-oriented development (TOD) projects for specific department resources.
TOD projects create walkable residential and commercial centers by focusing economic development around transit, rail, and intercity bus facilities. The guidance will help project sponsors understand parameters to qualify for financing under Transportation Infrastructure Finance & Innovation Act (TIFIA) and Railroad Rehabilitation & Improvement Financing (RRIF) loan programs.
“Today’s announcement will help communities use transit-oriented development to save residents time and money, reduce pollution and carbon emissions, and make jobs accessible to more people,” U.S. Transportation Secretary Pete Buttigieg said.
The USDOT’s Build America Bureau developed the guidance for public and private entities seeking loans for transit-oriented development projects.
“Integrating land use and transportation planning is central to USDOT’s efforts to meet the ambitious goals set by this administration,” Christopher Coes, principal deputy assistant secretary for transportation policy, said. “Making our credit programs accessible for TOD projects is a critical piece for our approach to tackling the climate crisis and promoting social equity through transportation.”
The Federal Transit Administration announced the availability of $10 million in grants for TOD projects in April.
The FAST Act established that TIFIA and RRIF financing could be used to support TOD projects, but no clear guidelines were set.