Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 11/06/2020
Author Hillsborough MPO
Published By Hillsborough MPO
Edited By Tabassum Rahmani
Uncategorized

Transit-Oriented Development for Housing Being Discussed by Planners

Transit-Oriented Development for Housing Being Discussed by Planners

Introduction

In the landscape of urban planning and development, the intertwined challenges of affordable housing and transit-oriented development (TOD) have emerged as pivotal issues that demand innovative and collaborative solutions. These two domains are not just standalone concerns but are deeply interconnected, influencing the quality of life, economic vitality, and sustainability of communities. This essay delves into the complexities of integrating affordable housing with TOD, exploring the multifaceted challenges and opportunities that arise when these two critical areas of urban development intersect. By examining the existing literature and policy frameworks, we aim to provide a comprehensive understanding of the unique dynamics at play and propose strategies for more effective and equitable urban planning.
Transit-Oriented Development for Housing

The Burden of Housing Costs

Affordable housing is a cornerstone of community development, yet it remains a pressing issue in many regions. According to the U.S. Department of Housing and Urban Development (HUD), an estimated 12 million renter and homeowner households pay more than 50% of their annual incomes for housing. This alarming statistic highlights the severity of the housing affordability crisis in the United States. The HUD defines housing as a cost burden if a family pays more than 30% of their income for it. This financial strain on households not only affects their quality of life but also limits their ability to invest in other essential needs such as healthcare, education, and savings.
The challenge of affordable housing is compounded by the increasing costs of living in urban areas. Rising rents and home prices in cities across the country have pushed many low- and moderate-income families to the brink of financial instability. This situation is exacerbated by the lack of sufficient affordable housing units, which forces families to spend a disproportionate amount of their income on housing. The need for affordable housing is not just a matter of economic justice but also a fundamental requirement for the stability and well-being of communities.

The Impact of Transportation Costs

Transportation costs are the second largest expenditure for most U.S. households, further straining family budgets. The economic, public health and environmental costs of congestion are on the rise, with significant implications for urban areas. In 2019, Americans lost an average of 99 hours a year due to congestion, costing them nearly $88 billion in total, or an average of $1,377 per year per person (Inrix, 2020). These figures underscore the urgent need for more efficient and sustainable transportation solutions.
The integration of affordable housing with TOD offers a promising approach to addressing both housing affordability and transportation challenges. By locating affordable housing units near transit hubs, residents can benefit from reduced transportation costs, improved access to employment opportunities, and enhanced quality of life. However, achieving this integration is not without its challenges. TOD projects require a unique set of conditions to succeed, including supportive land use policies, adequate funding, and community engagement.

The Challenge of Integrating Affordable Housing and TOD

Despite the potential benefits of integrating affordable housing with TOD, the literature often examines these two areas separately. This separation limits our understanding of the unique challenges and opportunities that arise when these two critical areas of urban development intersect. A more in-depth inquiry into the interaction—and often conflict—between various land use and transportation policies is essential for creating effective and equitable development strategies.
One of the primary challenges in integrating affordable housing with TOD is the competition for scarce resources. Both affordable housing and TOD projects require significant investment, and securing funding can be a daunting task. Additionally, the regulatory environment often poses barriers to the integration of these efforts. Land use policies, zoning regulations, and funding mechanisms may not be aligned to support the development of affordable housing near transit hubs. This misalignment can lead to fragmented and inefficient development outcomes.
Another challenge is the potential for displacement. As TOD projects increase the desirability and value of areas around transit hubs, there is a risk that existing low- and moderate-income residents may be priced out of their neighbourhoods. This displacement can undermine the very goals of TOD, which aim to create more inclusive and sustainable communities. Therefore, it is crucial to implement policies and strategies that protect existing residents and ensure that TOD projects contribute to the overall well-being of the community.

Policy Recommendations and Strategies

To address the challenges of integrating affordable housing with TOD, a multi-faceted approach is necessary. This approach should include policy reforms, community engagement, and innovative funding mechanisms. Here are some key recommendations:

Policy Reforms

  1. Align Land Use and Transportation Policies: Ensure that land use policies and zoning regulations support the development of affordable housing near transit hubs. This alignment can be achieved through comprehensive planning efforts that integrate housing and transportation goals.
  2. Implement Inclusionary Zoning: Require developers to include a certain percentage of affordable housing units in TOD projects. This policy can help ensure that new development contributes to the creation of more inclusive communities.
  3. Protect Against Displacement: Implement policies that protect existing residents from displacement. This can include rent control measures, tenant protections, and community land trusts that ensure long-term affordability.

Community Engagement

  1. Involve Community Members in Planning: Engage community members in the planning and decision-making processes for TOD projects. This involvement can help ensure that projects meet the needs of the community and address local concerns.
  2. Promote Transparency and Accountability: Ensure that the planning and implementation processes for TOD projects are transparent and accountable. This transparency can help build trust between developers, policymakers, and community members.

Innovative Funding Mechanisms

  1. Leverage Public-Private Partnerships: Explore public-private partnerships to fund affordable housing and TOD projects. These partnerships can bring together the resources and expertise of both the public and private sectors to achieve common goals.
  2. Utilize Transit-Oriented Development Tax Increment Financing (TOD TIF): Implement TOD TIF mechanisms to capture the increased value of land around transit hubs and reinvest it in affordable housing and infrastructure improvements.
  3. Seek Federal and State Funding: Pursue federal and state funding opportunities for affordable housing and TOD projects. These funds can provide critical support for the development of more inclusive and sustainable communities.

Conclusion

The integration of affordable housing with transit-oriented development is a complex but essential endeavor in the pursuit of more equitable and sustainable urban communities. By addressing the challenges of housing affordability and transportation costs, we can create environments where residents have access to better opportunities and a higher quality of life. While the path forward is not without obstacles, through thoughtful policy reforms, community engagement, and innovative funding mechanisms, we can make significant strides in achieving the goal of developing housing that benefits all members of our communities.
For further reading and resources on this topic, consider exploring the following external links:

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