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Sustainable & Transit-Oriented Development

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Enterprise Point of Contact:

Michael A. Spotts
Senior Policy Analyst
Last Updated: March 29, 2012

Issue Background: Sustainable Communities & Transit-Oriented Development

Sustainable community development refers to planning and building activities that address social equity, environmental stewardship and economic development. This long-term and holistic approach is crucial to the efficient allocation of resources for housing, infrastructure, public transportation and supportive services. Sustainability does not refer to a set of prescriptive development and policy choices. Rather, it is a framework for making decisions that reflect the unique characteristics, challenges and opportunities of a given geographical area. Well-planned development can yield numerous benefits for households, including lower utility and transportation costs, better health outcomes and increased access to employment and other resources. Communities can also benefit from lower infrastructure costs, additional economic development and increased tax revenue.
 
Transit-oriented development (TOD) is an important component of sustainable development. The interrelated costs of housing and transportation are the two largest expenses for many households. Communities closely connected to a broad range of services, retail options and employment opportunities are often associated with higher housing costs. Households can be faced with a choice of paying an unaffordable amount for housing in such communities or living further away and commuting into opportunity-rich areas. In the later scenario, the savings in housing costs can be negated by the increased costs of transportation.
 
Communities can promote social equity by expanding public transportation access to underserved low- and moderate-income communities and investing in the preservation and/or construction of affordable housing near transit. The preservation of affordable housing is particularly crucial to prevent the displacement and increased cost burden that sometimes result from increases in property values in new transit corridors.
 
Enterprise supports sustainability through its Enterprise Green Communities initiative and its TOD-related activities. Green Communities provides resources for developers and communities to build well-located green affordable homes. Enterprise’s TOD work includes financing, research and policy advocacy. Enterprise is a lead partner in Mile High Connects, which will create or preserve at least 1,000 affordable homes along current and future transit corridors in the city, and is involved in TOD-financing activities in other cities throughout the country.

Current Policy State

The federal government has a significant impact on the quality of development decisions made by local communities. Fragmented jurisdictions and responsibilities, conflicting regulations and a lack of coordinated can be barriers to local and regional sustainability efforts. Under the Obama Administration, the Department of Housing and Urban Development (HUD), Department of Transportation (DOT) and Environmental Protection Agency (EPA) established the interagency Partnership for Sustainable Communities (PSC). In addition, HUD established the Office of Sustainable Housing and Communities (OSHC) to implement the Sustainable Communities Initiative (SCI). The PSC and OSHC facilitate inter-agency collaboration and provide funding, capacity building and technical assistance resources that promote the development of sustainable communities that address housing, land use, and transportation needs in a holistic, regionally-focused manner. The PSC, OSHC and SCI have yet to receive formal Congressional authorization and have been operating under the Administration’s discretion. Congress appropriated funding for the SCI in both fiscal years (FY) 2010 and 2011, but did not provide funding in FY 2012. Congress has yet to pass authorization legislation (the Livable Communities Act) for these programs.

The Federal Transit Administration’s (FTA) is in the process of revising the rules for its Major Capital Investment Projects program (also known as New Starts/Small Starts). This program is the primary competitive funding source for new federal transit investments. If implemented, the FTA rulemaking would amend the evaluation criteria to measure a wider range of benefits provided by transit projects and streamline the application process. FTA released an advanced notice in 2010 and a proposed rule (49 CFR Part 611; RIN 2132-AB02) and policy guidance (Docket No. FTA-2010-0009) for the program in January 2012. FTA is proposing to assess applicants' plans to develop and preserve affordable housing near new transit stops; encourage intensive development near transit; and promote supportive practices such as green building and improved access to transit stops, among other topics. Enterprise and many partners in the community development field have submitted multiple public comment letters throughout the regulatory process supporting these changes and providing detailed implementation recommendations. For more information, read the complete archive of FTA-related testimony and public comments.

Legislative and Regulatory Priorities

Enterprise supports efforts to harmonize overlapping and conflicting planning regulations and reduce other barriers to regional cooperation, sustainable development, and TOD. Specifically, Enterprise strongly supports the interagency Partnership for Sustainable Communities, Office of Sustainable Housing and Communities and the Sustainable Communities Initiative. To ensure that this work continues, Congress should pass authorizing legislation that ensures that nonprofits and community groups have an opportunity to play an active role in developing and implementing local and regional sustainability plans. Enterprise supports the addition of sustainability criteria into the application scoring process for existing capital and planning funding programs. Finally, Enterprise believes that transportation laws and regulations should provide incentives to coordinate affordable housing and transportation investments, facilitate joint transit and affordable housing development, and provide resources for dedicated funds that support affordable housing and community development near transit.

Publications and Resources


Current Sustainable Community Development and TOD-Related Legislation (112th Congress)

Previous Sustainable Community Development and TOD-Related Legislation (111th Congress)

  • Livable Communities Act (S. 1619 and H.R. 4690)
  • Enhancing Livability for All American Act of 2009 (H.R. 4287)
  • Community Regeneration, Sustainability and Innovation Act of 2009 (S. 453 and H.R. 932)
  • Green Resources for Energy Efficient Neighborhoods (GREEN) Act (H.R. 2336) and Energy Efficiency in Housing Act (S. 1379)

Enterprise Resources

Enterprise Research and Reports

Enterprise Statements, Testimony and Public Comment

HUD Sustainable Communities Initiative Funding

External Resources

External Research and Reports
© 2012 Enterprise Community Partners, Inc.
We are Enterprise. Our family includes Enterprise Community Partners, Inc, a national Section 501(c)(3) charitable organization that provides expertise for affordable housing and sustainable communities. Financing for affordable housing is offered through our tax-exempt subsidiary, Enterprise Community Loan Fund, Inc., and our for-profit subsidiary, Enterprise Community Investment, Inc. Housing development is offered through Enterprise Community Investment's subsidiary, Enterprise Homes, Inc. The content on this website reflects information about all of these entities.