1. BUILDING MIXED-INCOME COMMUNITIES NEAR TRANSIT
What you will learn in this module…
Objective: Understanding the combined cost of housing and transportation and opportunity to reduce overall cost of living through access to transit;
Increased housing choices for people in the community;
How to make communities livable for the people who need it the most and
How to ensure that transit-locational housing projects are neither perceived not used as agents of gentrification

2. Key Concepts and Definitions Mixed-Income Communities
Goal to provide housing for existing residents and workers throughout lifetime
Low- to Moderate-income households bear greatest transportation cost burdens
Location efficient mixed-income housing reduces Housing and Transportation costs
Provides housing for a variety of incomes and stabilizes community

3. Key Concepts and Definitions Housing and Transportation Costs
Transportation is the second highest household expense after housing.
The average household spends 51% of their household budget on housing and transportation combined, and both costs have been increasing in recent years. Households living near transit own fewer cars and drive them less, which leads to more money to spend on other household needs. The burden of combined housing and transportation costs falls heaviest on low- and moderate-income households. A 2006 study called “A Heavy Load” found that people in the NY Metro region making $20-$50,000 spent on average 32% of their income on housing and 24% on transportation.
By linking a range of housing types and incomes with transit service and other amenities, we can lower overall cost of living. That translates into increased spending power locally, since a large share of automobile-related expenditures (gas, parts, the cars themselves) immediately leaves the regional economy.
The average household spends 51% of the household budget on housing and transportation combined; both costs are increasing.
The average household spends 19% on transportation; households with good transit access spend only 9%.

4. Key Concepts and Definitions Location Efficiency
Location is a major factor in transportation costs for households and businesses
The Key Drivers of Location Efficiency are:
Compact neighborhoods
Walkable streets
Access to transit
Mix of use and services
NOTE: I think we need to reinforce the fact that location benefits more than transportation, that it adds community and investment value
Location is a major factor in determining business health and property value
Transportation costs can range from 15% of household income in location efficient neighborhoods to over 28% in inefficient locations.

5. Benefits of Mixed-Income TOD
Offers Truly Affordable Housing
Incorporates a mix of uses
Stabilizes Transit Ridership
Broadens Access to Opportunity
Relieves Gentrification Pressures
Provides for a diversity of people - singles, families, retirees

6. Benefits of Mixed-Income Neighborhoods
Allows families the ability to continue living in the same community by providing a mix of housing types
Integrates all income levels
Ensures community stability and sustainability
Helps stabilize workforce

7. Combined Benefits of Mixed-Income Communities and TOD
Providing for a mix of all incomes is good but providing for a mix of incomes in walkable neighborhoods near transit is even better.
Reduces H + T costs
Demonstrates positive public investment in community and transit

8. Reduced Housing and Transportation Costs
Reduced auto ownership and need to drive
Opportunity to link a range of incomes and household types with other amenities
Translates into more spending power locally
The average household spends 51% of their household budget on housing and transportation combined, and both costs have been increasing in recent years. Households living near transit own fewer cars and drive them less, which leads to more money to spend on other household needs. The burden of combined housing and transportation costs falls heaviest on low- and moderate-income households. A 2006 study called “A Heavy Load” found that people in the NY Metro region making $20-$50,000 spent on average 32% of their income on housing and 24% on transportation.
Photo Source
trackingprogress.org/.../01/TODhiawathaMar07.jpg
By linking a range of housing types and incomes with transit service and other amenities, we can lower overall cost of living. That translates into increased spending power locally, since a large share of automobile-related expenditures (gas, parts, the cars themselves) immediately leaves the regional economy.

9. Challenges
High cost of land and housing production in location efficient communities
Lack of coordination among multiple stakeholders and sectors
Market demand for housing near transit drives up costs
Mixed-income and mixed-use projects require complex financing
Public investment is often needed to provide a mix of incomes

10. 4 Strategies to Create or Preserve Mixed-Income Communities
Proactive Station Area Planning
Provide incentives and ease or remove regulatory barriers
Preservation of existing housing stock
Coordinate investments in location efficiency

11. Strategy 1: Proactively Plan for Station Areas
Brings all stakeholders together
Sets the long-term vision and implementation steps
Identifies needs and opportunities
Can be done at local, state, and regional (corridor) level
Creating a plan for the area around the station is the first step in planning for TOD.

12. What Goes Into a Good Station Area Plan?
Community Engagement and Vision
Comprehensive Land Use Plan
Public Investments in Roads, Parks, etc
Implementation and Financing Plan

13. TRANSPORTATION AND LAND USE
TOD Station Area Plans
Multi-family residential
Public/open space
Residential
Key Message:
Transit-oriented development (TOD) plans are one form of sub plan that focus on creating transit-supportive development in a specific transit station area.
Background Information:
In this example of a transit oriented development station area plan, the area plan calls for transforming the current land use from a park and ride into a transit village bustling with commercial, residential, and employment activity within a compact, architecturally diverse, and engaging space served by high quality transit.
By locating employment, retail, and higher density housing in close proximity to the transit station, people can walk transit, services, and jobs.
Core commercial
Dallas, TX

14. Strategy 2: Provide Incentives and Ease or Remove Regulatory Barriers
Retool zoning and financial incentives to meet goals
Encourage a mix of uses to integrate housing and other uses
Allow for increased density to support local-serving retail
Zoning should allow for compact and mixed-use development

15. Tools to Provide Incentives and Ease Regulatory Barriers
Incentive-based or Inclusionary Zoning rewards desired outcomes (e.g. mix of incomes or park lands) with incentives such as density bonuses, streamlined board and/or permit approvals, or reduced fees
The desired outcomes and community benefits need to be indentified at the onset (e.g. parks, moderate-income housing, etc.)

16. Inclusionary Zoning as a Tool
Use market momentum to generate new mixed-income development
Expand housing options near transit with a mix of housing types, densities, and income levels
Affordable levels need to be calibrated to local market

17. Incentive-based Zoning: Case Study
Massachusetts Zoning (Chapter 40R )
Offsets perceived fiscal impact with direct funding to cities
Requires the inclusion of affordable units in most private projects
Addresses gap in low- and moderate-income housing
Housing and Smart Growth Incentives (Chapter 40R)
Projects must be developable under the community's smart growth zoning adopted under Chapter 40R, either as-of-right or through a limited plan review process Upon state review and approval of a local overlay district, communities become eligible for payments from a Smart Growth Housing Trust Fund, as well as other financial incentives.   Chapter 40R seeks to substantially increase the supply of housing and decrease its cost, by increasing the amount of land zoned for dense housing. It targets the shortfall in housing for low- and moderate-income households, by requiring the inclusion of affordable units in most private projects.
The location of these districts helps consolidate growth and cut down on dispersal: in town centers, downtowns, near a transit station, on unused industrial land or in other locations municipalities have deemed appropriate for higher density housing.
Payments range from: $10,000 for up to 20 units; $75,000 for units; $200,000 for units; $350,000 for units; to $600,000 for 501 or more units of housing.
Proposed development along the Silver Line in Boston

18. Strategy 3: Preservation of Existing Housing Stock
More mixed-income housing exists today than can be built tomorrow
Existing subsidy contracts have limited terms
Existing market affordability can be maintained

19. Tools for Preservation of Existing Housing Stock
Land/property acquisition funds
Housing Trust Funds
Retool federal and state policies regarding the housing stock located near transit

20. Land Bank/Land Acquisition Fund
Preserves opportunities for mixed-income housing as land values rise
Can leverage market interest for mixed-income housing
New models led by non-profit with City investment
Charlotte, North Carolina bought the land around this station in an effort to encourage mixed-use, mixed-income TOD. It was an older, low-density light industrial area, but with the opportunity to develop into something different. This proactive step enabled the City to ensure the new development met all of its objectives.
Scaleybark Station, Charlotte

21. Housing Trust Funds Can be used for new construction or preservation
More flexible than Federal housing programs
Can be easily targeted to efficient locations
CASE STUDY: Denver, Colorado, has created a $15 million fund that includes City funding as a “first-loss” investment that has been able to leverage philanthropic and private money. The fund is being run by the Urban Land Conservancy, a local non-profit land trust, and is investing in existing properties near transit, upgrading them and thinking about long-term development opportunities.

22. Strategy 4: Coordinate Investments in Location Efficiency
Public/private investment in walkable neighborhoods near transit
Investments in development around transit creates value that can be captured and reinvested in the community
Policies can be tailored to take advantage of transit proximity and “location efficiency”

23. Tools for Improved Location Efficiency
Optimizing transit service
Walkable streets
Community amenities and place-making

24. Optimizing Transit Service
Access daily needs without driving
Reduced highway congestion and travel time
Access and connections to the regional transportation system
Reduced local congestion
PHOTOS/GRAPHICS TO BE ADDED
TOD can result in less congestion. A recent study by the Transit Cooperative Research Program found that multi-family housing near transit generates about ½ the number of automobile trips as the Institute for Traffic Engineers trip generation tables have traditionally estimated. So we have been building streets for traffic that has not necessarily materialized. A recent FHWA study in the Washington DC region found that even a 10-14% decrease in traffic on congested freeways would reduce travel delay by 75-80%. So even a small change in behavior can have a major benefit for congestion and the time savings from congestion relief.
From 1972 to 2003, Arlington County, VA added 15 million square feet of office space, 1 million square feet of retail space, and 10,000 housing units around its 5 Metrorail stations, but traffic volumes and congestion rose only slightly, all while preserving existing single-family homes in close proximity to transit. This was due to the County’s proactive planning for TOD throughout the three decades from the opening of the rail line.
[crowded highway photo]

25. Walkable Streets
Street design accommodates for more than the automobile
Active building fronts
Walk to shops and services
Support local businesses
Tokyo, Japan

26. Community Amenities and Placemaking
Creates walkable and accessible neighborhoods
Stimulates interaction
Encourages entrepreneurship
Fosters innovation
Encourages reinvestment in the community
Turn a neighborhood, town or city from a place you can’t wait to get through to one you never want to leave.

27. New Interactive Tools H+T Index www.htaindex.cnt.org
Mixed Income TOD Action Guide

28. Housing +Transportation Affordability Index
An interactive tool that measures the true affordability of housing based on its location.
User can find out housing and transportation costs in their region.
Database covers over 330 metro regions
For more information go to

29. Rockland County H+T Costs
This can be seen in detail when looking at Rockland County. The areas with existing transit service and a mix of housing and jobs had lower transportation costs and a lower combined housing and transportation cost as a percentage of income than those without travel options.

30. Westchester County H+T Costs
This can be seen in detail when looking at Westchester County. The areas with existing transit service and a mix of housing and jobs had lower transportation costs and a lower combined housing and transportation cost as a percentage of income than those without travel options. Done by H +T Index which will be featured later.

31. Mixed-Income TOD Action Guide
A tool for local jurisdictions working to foster mixed-income transit-oriented development (TOD) around planned transit stations.
Acquire an invaluable set of data that describes the demographics and market-potential of the transit district of interest,
For more information go to

32. Mixed-Income TOD Action Guide Sample Report
This is what a finished report would look like

33. Mixed-Income Communities Are More Than Housing
Housing needs to be linked to jobs, shopping, and community uses
Other public investments should support mixed-income communities
Bookmark Apartments in Portland, Oregon combines a public library, coffee shop and 47 apartments, 19 of which are affordable to households earning 60 percent of area median income. Rather than being isolated in a separate housing development, these residents are now integrated in with households paying market rent, right above a library, near transit, and with local shopping options.
By linking community uses, streetscape improvements, and other public investments with housing, municipalities are able to address long-term affordability at the same time as they are building opportunities for households to reach their fullest potential.
Bookmark Apartments, Portland, OR

34. Questions? Comments?
[add picture]