Somerville: Reconnecting America worked with the Somerville Community Corporation to identify needs and opportunities for equitable transit-oriented development in the City of Somerville, with a focus on the planned extension of the Green Line. The report highlights demographic and real estate trends, and outlines a series of strategies for achieving mixed-income TOD.

Over the past decade, it has become increasingly clear that the presence of transit can increase property values and result in valuable development opportunities. In this era of constrained transit funding and widespread demand for new and expanded transit systems, policy makers, transit planners and elected officials are increasingly interested in harnessing a portion of the value that transit confers to surrounding properties to fund transit infrastructure or related improvements in station areas. This idea, known as “value capture,” is much discussed in planning, transit, and local government circles. However, confusion abounds. Where does the value come from? What is the best way to measure it? And, most importantly, what is the best way to capture this value?

Those are the questions addressed in "Capturing the Value of Transit," a new report by Reconnecting America's Center for Transit-Oriented Development.

The Center for TOD is the only national nonprofit effort dedicated to providing best practices, research and tools to support market-based transit-oriented development. We partner with both the public and private market sectors to strategize about ways to encourage the development of high-performing TOD projects around transit stations and to build transit systems that maximize the development potential.

The Center for TOD is a partnership of the national nonprofit Reconnecting America, the Center for Neighborhood Technology, and Strategic Economics, an urban economics firm in Berkeley, CA.

The Center for TOD has updated its market demand estimate for the number of households likely to be looking to rent or buy housing near transit, from 14.6 million households by 2025 to 15.2 million households by 2030. These numbers are more than double the number of households who live near transit today. Meeting this demand would necessitate building 2,000 housing units near every station in the U.S. The earlier demand estimate was released in our landmark TOD market study 'Hidden in Plain Sight: Capturing the Demand for Housing Near Transit' in 2004. The numbers were updated for 2030 in order to be consistent with the time horizon of many regional transportation and land use planning efforts underway, as well as to account for the construction of new fixed-guideway systems.

This new national study funded by the Federal Transit Administration and the U.S. Department of Housing and Urban Development shows that location matters a great deal when it comes to reducing household costs. While families who live in auto-dependent neighborhoods spend an average of 25 percent of their household budget on transportation, families who live in transit-rich neighborhoods spend just 9 percent, the study says. The report examines five case study regions – Boston, Charlotte, Denver, Minneapolis, and Portland -- to better understand the proactive strategies being undertaken to create and preserve affordable housing near transit.

This study reviews the demand for housing near transit; explores the benefits of mixed-income, transit-oriented neighborhoods; analyzes the barriers to creating such communities; offers an array of tools for overcoming those barriers; and applies those tools in the context of four planned transit station areas in metro Denver.

This paper describes and evaluates tools and strategies that are being used to create mixed-income and affordable housing near transit in regions around the U.S. The first half of the paper explains how these various strategies are being used and the limitations and successes of each, and the second half discusses best practices and provides examples of each.

Low- and moderate-income families are finding that if they move further from work in order to find affordable housing they end up spending at least as much as they save – or more – on the increased cost of transportation. This report details the “heavy load” of combined transportation and housing costs on working families in 28 metropolitan regions around the U.S.

Our national TOD market study shows that demographics and other trends will cause the potential demand for compact housing near transit to more than double by 2025. This means that more than 14.6 million housieholds will be looking to rent or buy near transit, and meeting this demand would require building 2,000 residential units near each of the 4,000 stations in the U.S. The study ranks metro regions according to the size of their transit systems and according to the development potential.

This paper assesses the progress of transit-oriented development in four metropolitan regions – Atlanta, the Bay Area, Chicago and Denver. The shared "lessons learned" include the following: early planning is essential; upfront work on zoning, parking and codes can entice the market; and the planning and entitlements process needs to be made more developer-friendly. One conclusion is that TOD represents a paradigm shift toward a more integrated and interdisciplinary way of solving problems.