Transit-Oriented Developments Can Affect the Availability of Affordable Housing but Conclusions Are Complicated by Limited Research and Data

		Characteristics of Transit- Oriented Developments Can Increase Nearby Land and Housing Values

According to most of the literature we reviewed, plans for the existence of  transit stations and amenities commonly found in transit-oriented  developments generally increase nearby land and housing values, but the  magnitude of the increase varies greatly depending upon several other  characteristics. A few studies we looked at found  that retail presence near transit stations affected land and housing values  near transit positively. According to local officials and transit and  housing stakeholders we spoke with, higher land and housing values have  the potential to limit the affordable housing units that are market rate,  government subsidized, or incentivized. 2). Limited Research and Data Complicate Conclusions about the Effect of Transit- Oriented Developments on the Availability of Affordable Housing

A lack of direct research, incomplete data, and factors unique to each  transit station limit the conclusions that can be made about how transit- oriented developments affect the availability of affordable housing. Local, State, and Federal Affordable Housing Programs and Policies Support, but Generally Do Not Require, Affordable Housing in Transit- Oriented Developments

		Few Local and State Programs Are Specifically Targeted to Affordable Housing in Transit- Oriented Developments, and Most Are Incentive Based

Few local and state programs are targeted to assist local housing and  transit providers develop affordable housing in transit-oriented  developments; the few targeted programs that do exist mainly provide  financial incentives to developers if they include affordable housing in  new residential developments in transit-oriented developments. HUD and FTA Programs Allow Local and State Agencies to Promote Affordable Housing near Transit, but Rarely Provide Direct Incentives to Target Affordable Housing in Transit-Oriented Developments

Local housing providers have used HUD programs in a number of cases to  support affordable housing in transit-oriented developments, however,  these programs support affordable housing in any location. DOT, HUD, and FTA Have Collaborated on Interagency Efforts to Promote Affordable Housing in Transit- Oriented Developments, However, Implementation Has Been Limited, and Additional Steps to Enhance Collaboration Could Be Taken

		HUD and FTA, and More Recently DOT, Have Collaborated on Interagency Efforts to Promote Affordable Housing in Transit- Oriented Developments

Starting in 2005, HUD and FTA, and more recently DOT, have collaborated  to promote affordable housing in transit-oriented developments through  three interagency efforts, which are summarized below. While these practices can facilitate greater  collaboration among federal agencies, we recognize that other practices  may also help to foster greater collaboration. In comparing the agencies’ collaboration—through the interagency  agreement, the HUD-FTA action plan and the Partnership for Sustainable  Communities—to these key practices, we found that the agencies have  taken some initial actions that are consistent with some of the key  practices; however, these actions have not been fully formalized. This  is in line with a key practice to develop a mechanism to monitor,  evaluate, and report results. Without an implementation plan for each strategy,  however, DOT and HUD run the risk of losing momentum. To identify how local, state, and federal agencies have worked to ensure  that affordable housing, including housing subsidized through Department  of Housing and Urban Development (HUD) programs, is available in and  near transit-oriented developments, we interviewed Department of  Transportation (DOT), Federal Transit Administration (FTA) officials, and  HUD officials. To identify to what extent do HUD, DOT, and FTA work together to ensure  that transportation and affordable housing objectives are integrated in  transit-oriented development projects, we reviewed documentation  describing the collaborative efforts.
Why GAO Did This Study

The federal government has increasingly focused on linking affordable housing to transit-oriented developments--compact, walkable, mixed-use neighborhoods located near transit--through the Department of Housing and Urban Development's (HUD) housing programs and the Department of Transportation's (DOT) Federal Transit Administration's (FTA) transit programs. GAO was asked to review (1) what is known about how transit-oriented developments affect the availability of affordable housing; (2) how local, state, and federal agencies have worked to ensure that affordable housing is available in transit-oriented developments; and (3) the extent to which HUD and FTA have worked together to ensure that transportation and affordable housing objectives are integrated in transit-oriented developments. To address these issues, GAO reviewed relevant literature, conducted site visits, and interviewed agency officials.

What GAO Found

Characteristics of transit-oriented developments can increase nearby land and housing values, however determining transit-oriented development's effects on the availability of affordable housing in these developments are complicated by a lack of direct research and data. Specifically, the presence of transit stations, retail, and other desirable amenities such as schools and parks generally increases land and housing values nearby. However, the extent to which land and housing values increase--or in the rare case, decrease--near a transit station depends on a number of characteristics, some of which are commonly found in transit-oriented developments. According to transit and housing stakeholders GAO spoke with, higher land and housing values have the potential to limit the availability of affordable housing near transit, but other factors--such as transit routing decisions and local commitment to affordable housing--can also affect availability. Few local, state, and federal programs are targeted to assisting local housing and transit providers develop affordable housing in transit-oriented developments. The few targeted programs that exist primarily focus on financial incentives that state and local agencies provide to developers if affordable housing is included in residential developments in transit-oriented developments. However, GAO found that housing developers who develop affordable housing in transit-oriented developments generally rely on local and state programs and policies that have incentives for developing affordable housing in any location. HUD and FTA programs allow local and state agencies to promote affordable housing near transit, but rarely provide direct incentives to target affordable housing in transit-oriented developments. Since 2005, HUD and FTA, and more recently DOT, have collaborated on three interagency efforts to promote affordable housing in transit-oriented developments including (1) an interagency agreement, (2) a HUD-FTA action plan, and (3) a new DOT-HUD partnership. While these interagency efforts have produced numerous strategies, local housing and transit officials told GAO that these strategies had little impact, in part, because they have yet to be implemented. However, the agencies have not yet developed a comprehensive, integrated plan to implement all efforts, and without such a plan, the agencies risk losing momentum. GAO has previously identified key practices that could enhance and sustain collaboration among federal agencies; when compared to these practices, GAO found that HUD, FTA, and DOT have taken some actions consistent with some of these practices--such as defining a common outcome. However, weaknesses in agency housing data and analytical transportation planning methods will limit these agencies' ability to effectively monitor, evaluate, and report results--another key collaboration practice. GAO found that other collaboration practices, such as establishing compatible policies and procedures, could be taken to strengthen