MTC launches new grant program to encourage transit-oriented development

Following MTC’s January adoption of a framework for funding the fourth cycle of One Bay Area Grants (OBAG 4), the Commission today approved dedicating $45 million of the $820 million in OBAG 4 money for a Transit-Oriented Communities Incentive Program designed to encourage Bay Area cities, towns and counties to adopt policies that promote dense residential development within a half-mile of BART, Caltrain, SMART, Capitol Corridor and ACE stations; Muni and VTA light-rail stations; Muni and AC Transit bus rapid transit stops; and ferry terminals. 

Grants awarded through the TOC Incentive Program will vary based on the size of the jurisdiction seeking funds. Smaller communities with populations of less than 100,000 will compete for grants of $1 million to $2 million while mid-size cities with populations between 100,000 and 200,000 will be eligible for awards of $2 million to $4 million and cities with populations of 200,000 to 400,000 will be eligible for grants of $4 million to $6 million. San Jose, San Francisco and Oakland will compete for larger grants of $6 million to $8 million each. Applications will be evaluated on a 100-point scale with a maximum 25 points possible in each of four categories: density, housing policies, parking policies and station access. Cities or counties must score at least 85 total points to be eligible for the TOC Incentive Program grants. Jurisdictions that do not meet the 85-point threshold will remain eligible for other OBAG grants. MTC established a July 1, 2027, deadline for submitting grant applications through the TOC Incentive Program.