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Transit-Oriented Development Fund

Overview

The Transit-Oriented Development Fund is a competitive grant program intended to provide funding to municipalities and regional councils of government for transit-oriented development (TOD) projects and/or projects that demonstrate responsible growth.

Funding is provided through a combination of the Responsible Growth Incentive account and the Transit-Oriented Development and Pre-Development account. The Department of Economic and Community Development, along with other agencies, helps administer various projects funded under this grant program.


About the Fund

A number of public/private organizations have come together to create a $15 million TOD Fund to promote development around station stops along the existing and proposed transit corridors. The state and the Connecticut Housing Finance Authority have each contributed $1 million, adding to $13 million of private capital from the fund manager, Local Initiatives Support Corporation (LISC). This fund will offer pre-development and acquisition financing to eligible projects and developers.

This fund is just one key component of a coordinated strategy to leverage transportation-related development to assist municipal partners and developers to strengthen local economies, including:

  • Affordable housing funds via the Department of Housing and CHFA
  • Infrastructure and TOD capital funds via OPM
  • Brownfield remediation funds via DECD

Eligibility

Grants are available for qualified project and developers. Eligible developers may include private nonprofit or for-profit developers in good standing with the state of Connecticut who can demonstrate that they have the experience and financial capacity to execute their project.

Projects eligible for a TOD loan must:

  • Be located within a half-mile of a station or stop along the CTfastrak, Hartford Line, Shore Line East or Metro-North’s New Haven, New Canaan, Danbury and Waterbury lines.
  • Include a residential component with a minimum percentage of affordable housing, based on the specific demographics of each site.

Uses of the TOD Fund

The TOD Fund offers loans of up to $3 million for a variety of both pre-development and acquisition initiatives. Applications for this funding will be evaluated based on the project’s ability to help:

  • Create residential and mixed-use development near transit
  • Increase affordable housing options
  • Expand neighborhood retail, commercial or community services
  • Revitalize vacant, blighted or underutilized property
  • Leverage significant private investment
  • Create construction and permanent jobs

Related Resources

Transit-oriented development (TOD) projects are defined in Section 13b-79o of the Connecticut General Statutes.

Responsible growth projects demonstrate consistency with the Conservation & Development Policies: The Plan for Connecticut 2013-2018.