Housing

VTA receives $900,000 for affordable housing near public transit

Gilroy Transit Center
Gilroy Transit Center. Google Maps.

The U.S. Department of Transportation's Federal Transit Administration (FTA) this week announced nearly $10.5 million in grants to support the development and preservation of affordable housing near public transit in communities across the country.

The Santa Clara Valley Transportation Authority (VTA) will receive $900,000 to plan for transit-oriented development near a downtown rail and bus station. 

VTA seeks to enhance accessibility and improve the area around the Gilroy Station, currently served by Caltrain commuter rail and VTA buses that connect to San José and San Francisco.

Funding is awarded to 11 communities in 10 states through the Pilot Program for Transit-Oriented Development (TOD) Planning, which is funded by President Biden's Bipartisan Infrastructure Law. Grants will advance a key part of the Administration's Housing Supply Action Plan by helping communities develop plans to encourage ridership by developing housing and businesses near transit corridors. 

"With many Americans spending so much of their income on transportation and housing, the Biden-Harris Administration remains focused on bringing these costs down," said U.S. Transportation Secretary Pete Buttigieg. "With the funding we’re announcing today, we’re helping communities develop walkable, livable neighborhoods – with affordable housing options closer to public transportation – that will help lower these combined costs for more Americans."  

FTA prioritized project selections that included an affordable housing component, another example of the Biden-Harris Administration’s commitment to promoting equity and housing affordability nationwide.

Transit-oriented development reduces reliance on single-occupancy vehicles, improves access, expands mobility options, and reduces greenhouse gas emissions and air pollution. TOD is shown to boost economic development and promote transit ridership by creating more opportunities for people to easily access rail and bus rapid transit stations, transit centers, and bus stops. TOD also increases access for people with disabilities who are transit dependent, especially those who need transportation to get to work. Furthermore, it accelerates the housing supply in communities with affordable housing plans or policies.

This is the third round of TOD planning grants since the signing of the Bipartisan Infrastructure Law, which will help more transit agencies make lasting changes in their communities by setting the stage for future development and jobs creation. 

A full list of this year's selected projects is available here

Planning projects were selected for funding based on criteria described in the Notice of Funding Opportunity. FTA received 32 eligible project proposals totaling nearly $30 million in requests.

The Bipartisan Infrastructure Law provides $68.9 million in funding for the Pilot Program for TOD Planning through 2026, a 38% increase over the prior five years of funding. Since 2015, FTA has provided approximately $133 million in federal support to fund TOD planning activities in 36 states.

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