financing equitable transit-oriented development
TRANSCRIPT
Financing Equitable TOD – Overview
Eric RothmanPresident
HR&A Advisors, Inc.October 27, 2015
Financing Equitable TOD - Overview: Eric Rothman
InfeasibleLOSS
COST REVENUE
Equitable TOD aligns affordable housing with TOD, both of which face development feasibility challenges.
Cost of land assembly
Example Policy Barriers
Cost of brownfield remediation
Commuter parking requirements
Public realm requirements
Example Market Barriers
ETOD
Financing Equitable TOD - Overview: Eric Rothman
While there is overlap, affordable housing and transit policies are generally organized at different levels of government.
Housing
Transit / TOD
Housing PolicyFederal, state, and local levels
Housing Financing ProgramsPrimarily state, and sometimes local
Transit OperatorsPrimarily regional and local
TOD FinancingPrimarily regional and local, sometimes state
Financing Equitable TOD - Overview: Eric Rothman
There are a number of public policies and programs available to support the development of ETOD.
Policies + Programs• Density Bonuses linked to Mandatory Inclusionary Housing• Low Income Housing Tax Credit (LIHTC)• Low-Cost or Forgivable Loans; Grants
o Example: Denver’s TOD Fund provides low-cost loans that have helped preserve or create 626 affordable homes as of 2013
• Tax Exemptions & Abatements o Example: The Transit-Oriented Development Property Tax Abatement Program in Portland,
Oregon reduces operating expenses on affordable properties near TOD for 10 years• Affordable Housing Trust Funds
o Example: Los Angeles’ AHTF contributed $21 million in 2008 to support the development of 225 affordable housing units near TODs
• Tax-Exempt Bond Financing• Tax Increment Financing (TIF)
o Example: Sacramento, California supported 114 low-income senior apartments near TOD through $6 million in TIF
• Reduced parking requirements• Community Development Block Grants (CDBG)• Transfer of Development Rights (TDR)
o Example: Arlington County, Virginia used TDR along Columbia Pike to preserve over 600 housing units since 2012
Financing Equitable TOD - Overview: Eric Rothman
Source: National Housing Trust & Abt Associates
Across the nation, State housing agencies that factor transit-access into LIHTC allocation decisions more than doubled from 17 to 35 since 2003.
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130
5
10
15
20
25
30
35
40
Number of States with a Policy Preference for TOD Proximity when making LIHTC Allocations
Financing Equitable TOD - Overview: Eric Rothman
This alignment of housing finance and transit facilitates ETOD in many states with legacy and growing transit systems.
Source: National Housing Trust & Abt Associates
States with a Policy Preference for TOD Proximity when making LIHTC Allocations
