TRANSACTIONS NEWSLETTER ONLINE

In the face of two of the Bay Area's most serious problems -- escalating traffic congestion and a severe housing crunch -- MTC has initiated a program designed to encourage the creation of new housing adjacent to existing public transit facilities in the region.

MTC will set aside $9 million over the next three years to finance its Housing Incentive Program (HIP). Modeled after a successful program in San Mateo County -- which garnered the grand award in MTC's Transportation Awards Program this year -- the regional HIP will disburse funds directly to local jurisdictions that locate compact housing near transit. The jurisdictions may spend the HIP moneys on any neighborhood-based transportation projects that are consistent with MTC's Transportation for Livable Communities (TLC) program, which helps fund improvements to streetscapes, bicycle and pedestrian facilities, and the like.

"We want to stimulate transit use while also addressing the regional housing shortage," said MTC Deputy Executive Director Steve Heminger. "The HIP project is a comprehensive and strategic planning tool that incorporates transportation, housing and land use."

The launching of the Housing Incentive Program is particularly timely in light of a new study by the Association of Bay Area Governments that estimates the Bay Area will need more than 230,000 new homes in the next six years. MTC's own 20-year forecasts show that, if current trends continue, 250,000 of the region's employees and their families will be living outside of the nine counties by 2020 and spending precious time and resources commuting to work.

To qualify for a HIP grant, the proposed housing project must be in the initial planning stages; be within a one-third mile walk from a bus route, rail station or ferry dock that offers service at 15-minute frequencies or better; and provide a minimum of 25 units per acre. The award amounts range from $1,000 per bedroom at the 25-unit-per-acre level, to $2,000 per bedroom for a 60-unit-per-acre project. A $500 bonus per bedroom is awarded for all affordable units, and mixed-use development is encouraged but not required.

The Housing Incentive Program is part of the larger TLC program, which was started in 1998 and since that time has provided $27 million in capital funding to 34 small-scale pedestrian- and transit-friendly projects around the region. TLC also has awarded a total of $1 million in planning grants to 36 projects, some of which later qualified for capital funding as well. In conjunction with the creation of the HIP, eligibility criteria for TLC projects have been revised to strengthen the housing/transit nexus in proposed projects. Specifically, selection of a project for TLC funding will take into account the extent to which the project increases housing opportunities at densities that encourage transit, bicycling and pedestrian trips.

MTC will be issuing a call for HIP/TLC project applications in early February, with capital grants to be made in the spring of 2001.
- Réka Goode

For more information on the HIP and TLC programs,
see MTC's Smart Growth section.

Contents

• In This Issue:
  Transactions Surveys the Political Landscape
  • Poll Vault: Transportation Measures Clear the Bar in Two Bay Area Counties
  • Focus: Bay Area Transportation Sales Taxes
    Half-cent taxes mean big bucks for Bay Area transportation -- plus highlights of Measure A and Measure B
  • Washington Wrap-Up: Federal Appropriations
    Region fares well in big federal spending bill
  • Bay Area State Legislative Delegation
    Fresh faces join Bay Area delegation in Sacramento
  • Interview: John Dutra
    A conversation with the new chair of the Assembly Transportation Committee
• News Briefs
  • Heminger to Head MTC
    Commission picks new chief to lead agency
  • Toll Collection Goes High-Tech
    Got transponder? FasTrak comes to Bay Area bridges
  • Housing Incentive Program
    MTC gets HIP to housing