Affordable Housing: A Much-Needed “Carrot” in the New Starts Program
[This is another in our series of expert blogs on TOD highlighting work and research that experts are doing in the field. The author, Keith Wardrip, is senior research associate for the Center for Housing Policy, the National Housing Conference’s research affiliate.]
Housing affordability has historically been measured by comparing monthly housing costs with monthly household incomes. When housing costs consume a greater share of income than is deemed appropriate (often 30 percent), it is considered unaffordable for its occupants. But high-quality housing affordable by this standard is frequently located on the periphery of metropolitan areas, where single-use zoning and auto-dependence are commonplace, rather than in walkable, mixed-use communities. The net result can be higher transportation costs that more than wipe out the money saved on a lower rent or mortgage payment.
Illustrating this point, recent reports by the Center for Housing Policy and its partners show that in the Washington, DC, San Francisco, and Boston metropolitan areas, housing is largely less expensive on the periphery, exemplifying the “drive ‘til you qualify” phenomenon. But in many of these same areas, transportation costs are more expensive due to limited access to public transit, job centers, and amenities within walking distance, leaving people with no choice but to drive farther and more frequently. As a result, there are too few communities that offer both housing and transportation costs that low- and moderate-income families can afford. Reports like these are creating a growing awareness that discussions of affordability should be expanded to include the combined cost of housing and transportation and its relationship to the resources of low- and moderate-income households.
Investing in the expansion of public transit is one way to lower these combined costs. Through the New Starts program, the DOT was authorized to award $6.6 billion on a competitive basis over the last four years, funding more than 330 applicants to improve and expand their public transit systems. But as with most major community capital investments – public or private – large-scale transit investments have the potential to make neighborhoods more attractive for homeowners and renters. The result: higher land prices, increasing gentrification pressures, and the displacement of families that could benefit most from reduced transportation costs.
That’s why the National Housing Conference, Enterprise Community Partners, Habitat for Humanity International, and others have asked the DOT to change the way it awards New Starts funding. In our comments, we suggest that two new factors to incent the development and preservation of affordable housing be added to those that DOT currently uses to select applicants. The first factor would assign points to applications based on the share of housing built near new transit stations that would be permanently affordable for low- and moderate-income renters and owners. The second factor would prioritize projects designed to serve existing subsidized housing developments as well as to preserve and expand housing for those with the lowest incomes. Including these factors would ensure that federal investments in transit would benefit low- and moderate-income families rather than displacing them.
In addition to improving overall affordability, expanding the nation’s public transit systems can help reduce energy use, greenhouse gas emissions, and traffic congestion, but the full potential will be realized only if we as a society take steps ensure that these benefits are distributed equitably today and are protected for the foreseeable future. The National Housing Conference, the Center for Housing Policy, and our partners will be discussing these issues and more in two events focused on building and preserving affordable housing near transit in Denver later this month. We hope to see you there!
Livable Communities in Small Town America
Transportation for America has released "Case Studies on Transit and Livable Communities in Rural and Small Town America," which offers a dozen examples of small towns and rural regions working to make their communities more livable.
The report by T4's Sean Barry explain how each is growing economies, benefiting people and protecting the land and lifestyles treasured by residents and non-residents alike.
While livability efforts are more often associated with larger cities and suburban sprawl, the report explains that rural areas and small towns share core livability values that include improved transportation options; growth along historic main street; green space; biking and walking paths; and easily accesible shopping, restaurants and health care.
As the report points out, the federal Partnership for Sustainable Communities and the proposed Livable Communities Act illustrate how federal policymakers are attempting to support the coordination among transportation, housing, environmental and agricultural planning necessary for the creation of livable communities.
"If any part of the country is in need of a comprehensive, cross- departmental approach, it is America’s small towns and rural areas," explains Barry.
Transportation for America is the largest, most diverse coalition working on transportation reform today. It is working toward more responsible investment of federal tax dollars to promote a safer, cleaner, smarter transportation system that works for everyone.
The report has been added to the Best Practices.
Case Studies on Transit and Livable Communities in Rural and Small Town America
Weaving Together Vibrant Communities Through Transit-Oriented Development
Allison Brooks, Reconnecting America's chief of staff, has an article on transit-oriented development in the summer issue of San Francisco Federal Reserve Bank's online publication, Community Investments.
"At its core, TOD is about connecting, or reconnecting, the fabric of our communities — imagine a quilt, if you will — where neighborhoods and places of varying shapes, colors, sizes and textures are integrated into a vibrant and cohesive region," writes Brooks in "Weaving Together Vibrant Communities Through Transit-Oriented Development." "Implementing equitable TOD involves rethinking the current paradigm, where a person’s zip code can determine important outcomes such as educational attainment or employment opportunities."
The article defines transit-oriented development, introduces the concepts and principles behind the term, and presents strategies for implementing successful TOD initiatives, especially those that benefit low- and moderate-income individuals and communities.
You can read the article here.
Employment Location Decisions & Affordable Housing
"If we are going to be thinking of affordable housing in this country, the broader vision of affordable living should come from our patterns of development and opportunities that already exist," writes Reconnecting America's Jeff Wood in a guest blog post over at the National Housing Conference's (NHC) "Open House" blog.
Wood's post, "Employment Location Decisions & Affordable Housing," examines the "slow methodical process of workers dispersing and the employment following, seeking an equilibrium solution" and what that decentralization has meant for affordable living.
"While it’s hard to imagine regions pushing for employment to cluster in one place, the ability to make existing clusters more attractive for new firms and jobs of all income levels is something that warrants greater thinking," Wood writes. "Ultimately this will lead to better transit location policy and increased reliance on bikes, feet, and alternative modes while also saving some folks cash on housing and transportation."
GETTING TO WORK: IMPROVING JOB ACCESSIBILITY FOR DISABLED WORKERS
Providing accessible, convenient transportation options for people 
with disabilities can be challenging, especially when they limit employment opportunities. The Center for Workers with Disabilities has prepared a report, Getting to Work: A Case Study Report on Accessible Transportation Projects, profiling the efforts of four states to improve job accessibility for disabled workers. The states of Illinois, Massachusetts, Minnesota, and New Jersey have used funding from Medicare Infrastructure Grants to identify service needs and gaps and bring together various transportation agencies to discuss how to improve job accessibility. In Illinois, the grant funded employer summits around the state, and local Chambers of Commerce are now establishing best practices for attracting and assisting disabled workers. In New Jersey, NJ TRANSIT developed a five-year plan for increasing the number of disabled workers with full-time jobs in the state. The Massachusetts Executive Office of Transportation identified eight strategic priority areas, one of which is focused on increasing transportation options for the disabled. The state held a transportation summit in October 2009 and has developed an online trip planning tool. The Minnesota Legislature set a goal of meeting 80% of the unmet transportation needs of the disabled throughout the entire state by 2015 and reaching 90% by 2020. Based on these case studies, the report identifies several strategies that communities can use to provide accessible transportation:
- Convening stakeholders and providing a forum where state agencies, transportation entities, private transportation providers, employers, transportation brokers, state officials and others can engage in transportation planning.
- Identifying goals that result in a win-win situation for all.
- Using this information to plan for outcomes.
- Identifying transportation needs, gaps, and resources in the state.
- Working to address gaps and to leverage resources through transportation coordination, capital expenditures, and other strategies.
- Assuring consumer access to transportation information through a single point of contact (for example, a web-based resource, a transportation brokerage, concierge services, or other trip planning tools).
- Training consumers on the use of trip planning tools.
This report has been added to Best Practices: Getting to Work: A Case Study on Accessible Transportation Projects
Schools and TOD
The Center for Cities & Schools at the University of California, Berkeley, has released a study entitled, "Putting Schools on the Map: Linking Transit-Oriented Development, Families, and Schools in the San Francisco Bay Area."
"This paper is the first of its kind; there is very little research on TOD and families and virtually no research on the relationship between TOD and schools. Therefore, we take an exploratory approach to understanding and framing these interconnections, and provide a rationale for the linkages at this nexus," the authors note.
Extensive case study research, interviews, and focus groups conducted throughout the Bay Area went into this report.
Researchers discovered that opportunies exist to use transit-oriented development to create great communities that support families and provide high-quality educational options for all children. The problem, the researchers found, is that TOD strategies rarely focus on families or include school districts in the planning process.
"Because the lives of young people are shaped by their housing, health care, employment opportunities, and safety on the streets, schools cannot be the sole institution responsible for preparing future generations to be active, engaged, and healthy citizens. Cities can, and do, play an important role. TOD is one emerging city development trend that can bridge the priorities of regional planners, local policy makers, families, students, and schools," the researchers conclude.
This study has been added to the Best Practices.
Talking About Livable Communities
The Livable Communities Act's passage out of the Senate Banking, Housing and Urban Affairs Committee merits a moment of celebration.
Big cities and small want to protect open space, revitalize Main Streets and urban centers and improve quality of life. But the challenges are often regional in scope, transcending jurisdictional boundaries. Communities often lack the technical resources and capacity to develop regional, integrated solutions.
The Livable Communities Act would provide communities with the resources necesary to plan for and create healthier, more affordable places to live, work, and raise families.
Critical to livable cities is taking advantage of the opportunities that transit-oriented development can provide. Reconnecting America and the Center for Transit-Oriented Development have been in the forefront of efforts to ensure that federal transportation funds are leveraged to achieve national economic development, energy security, social equity and environmental goals.
In May, the Center for Transit-Oriented Development (CTOD), Transportation for America (T4America), the National Housing Conference (NHC), the American Institute of Architects (AIA), and LOCUS: Responsible Real Estate Developers and Investors hosted a Transit-Oriented Development Financing Forum. Out of that came a recommendation for a credit facility that has been incorporated into the act as passed out of the Senate Committee on Banking, Housing and Urban Affairs on Aug. 3.
"These credit enhancements are tools, such as direct loans and loan guarantees, that encourage partnerships between the public and private sector, and leverage non-federal funds to help promote livable communities and enhance the efficiency of transit service," explained Reconnecting America CEO John Robert Smith, James Corless, director of Transortation for America, and Chris Leinberger, president of LOCUS, in a letter endorsing the amendment to the act.
The Livable Communities Act wold provide grants for comprehensive planning to communities looking to integrate transportation, housing, economic development and environmental issues. It would set aside $3.75 billion over three years for competitive grants to fund implementation of projects identified in these integrated regional plans.
The act would authorize the Interagency Council on Sustainable Communities to bring together the departments of Housing and Urban Development and Transportation and the Environmental Protection Agency, along with other federal agencies, to coordinate federal efforts to support development that provides long-term economic and environmental benefits.
And it would create an Office of Sustainable Housing and Communities within the Department of Housing and Urban Development to foster sustainable development, lead sustainability initiatives and provide technical assistance to communities seeking to plan for a more sustainable future.
Passage of the act would establish a framework for key elements of the next surface transportation reauthorization, such as increasing transportation options and giving communities they tools they need to plan successfully.
Smart Money In Real Estate Is On Smart Growth
"This suburb of Washington, D.C. inspired R.E.M.’s 1984 song about the soul-sucking blandness of a suburban adolescence that has been a staple of rock and roll. “(Don’t Go Back to) Rockville” described a town of empty houses, “where nobody says hello.” But some experts in the real estate business believe that in the future, more and more of us will be going back to places like the revamped Rockville -- quite happily, in fact."
So starts Helen Chernikoff and Al Yoon's special report for Reuters, "Going back to Rockville: After the bust, urban-style living is gaining momentum."
Reconnecting America assisted Chernikoff with research for the report.
Read the report here.
Take The Building A Walkable America Survey
America Walks in partnership with the Association of Pedestrian and Bicycle Professionals is working to increase walking and walkability in America. In tandem with our Equal Footing Campaign Steering Committee we galvanizing a collaborative national walking movement. Reconnecting America Policy Associate Alia Anderson sits on America Walks' National Steering Committee.
Please take the following survey as a way to provide your input into this process. This survey will take approximately five-minutes.
Also attend the Equal Footing Summit on Sept. 16, 2010, directly following the 2010 Pro Walk/Pro Bike conference, to rally and coordinate organizations, businesses and individuals to speak with one voice to improve walkability in America.
THE ARC EFFECT: IMPROVING TRANSIT CONNECTIONS TO NEW YORK CITY CAN BOOST HOME PRICES, IMPROVE JOB ACCESSIBILITY, AND GENERATE NEW TAX REVENUE FOR COMMUNITIES
A new report by the Regional Planning Association (RPA) confirms the tremendous economic benefits that public transportation can bring to communities. Construction of the trans-Hudson River tunnel as part of the Access to the Region’s Core (ARC) project could potentially raise housing values by $18 billion and generate an additional $375 million in property tax revenues for communities with stations along lines utilizing the tunnel. Households living within two miles of a transit station on the NJ TRANSIT system or MetroNorth’s Port Jervis and Pascack Valley lines could see their property values increase by $19,000. For those living within walking distance, the projected increase is even higher at $29,000. The new tunnel will also improve accessibility to midtown Manhattan, doubling the number of people living west of the Hudson River who can commute to midtown Manhattan within 50 minutes. Construction of the tunnel, which will be the second trans-Hudson rail tunnel connecting New Jersey and New York state with midtown Manhattan, will be complete in 2018.
The report, entitled “The ARC Effect: How Better Transit Boosts Home Values and Local Economies,” is part of a larger statistical analysis of 45,000 home values within two miles of NJ TRANSIT stations. The researchers based their figures on the effect that three previous imporovement projects had on housing values.
The report’s authors conclude with a number of implications, including:
- Investing in transit pays off. The ARC project will cost $9 billion but produce $18 billion in new value.
- Higher property values reflect an efficient economy and improved job accessibility.Average wages in New York city are 60% higher than surrounding areas, so improving access to the city makes homes along transit lines more attractive.
- Better train service can increase tax bases at the local and state levels, which reduces the pressure to increase tax rates, especially in tough economics times.
- The greatest property values can be gained by building transit-oriented, mixed-use, economically diverse development near transit stations.
- Transit agencies should collaborate with the communities along corridors utilizing the new ARC tunnel to maximize the economic benefits and improve the quality-of-life of all residents living near these stations.
Read a summary and press release here.
Read the full report here.
For more information on the ARC Tunnel project, visit the project website.
