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
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
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.