Transform Adds Transit-Oriented Development Bill to its 2025 Agenda
We published our legislative priorities a couple of weeks ago, but like everything in Sacramento, that list is subject to change. We’re happy to add another excellent bill to our support list: VMT Mitigation Fund for Affordable Housing Bill, AB 1244, by Assemblymember Buffy Wicks.
Critical TOD funding
California’s Transit-Oriented Development (TOD) Housing Program provides grants of up to $10 million for affordable rental housing development near transit stops and up to $5 million for transit improvements. It’s an excellent program that provides critical funding for affordable housing and can also be used to fund neighborhood amenities like bus shelters, bike lanes, and sidewalk improvements.
Under California’s environmental review law, construction projects projected to increase vehicle miles traveled (VMT) must take mitigation measures, but these measures often contain overly optimistic assumptions that don’t lead to meaningful reductions in VMT. The VMT Mitigation Fund for Affordable Housing Bill adds more money to the TOD Program by making it eligible for highway mitigation dollars.
Housing as a Climate Solution
While research definitively demonstrates that transit-oriented affordable housing significantly reduces VMT, there is no clear process to direct VMT mitigation resources to affordable housing developments. Lower-income households drive 25% to 30% fewer miles when living within one-half mile of transit, and nearly 50% less when living within one-quarter mile of frequent transit. Transform’s analysis of the impact of a proposed $10 billion housing bond in the Bay Area illustrated the huge VMT reduction of building affordable housing near transit, as well as the cost savings for residents. Our reports on transit-oriented development have repeatedly demonstrated the value of TOD as a climate solution.
AB 1244 would make it easy for VMT-generating projects to mitigate their impacts with affordable housing. Taking a statewide approach through the Transit-Oriented Development (TOD) Housing Program adds efficiency, certainty, consistency, and a familiar process by which developers of affordable homes can access funding. To ensure communities facing the brunt of highway expansion benefit from the mitigations, AB 1244 would prioritize awarding funds to qualifying affordable housing developments in the same city and county as the project.
Housing, not Highways
Transform wholeheartedly supports this excellent measure. With California facing a shortage of 1.2 million homes affordable to lower-income households, and roughly 180,000 people experiencing homelessness on any given night, it would provide a needed injection of affordable housing near transit. While we would prefer no new developments that increase VMT, for the projects that do get built, AB 1244 directly mitigates the increased emissions by funding one of the best ways to reduce emissions: affordable housing near transit.