What is transit-oriented development (TOD)?
What’s a transit village and why would we want one here? A transit village, often called transit-oriented development or TOD, is a district with frequent public transit, taller buildings, a mix of commercial and residential, and a lot of people walking. In other words, it looks a lot like an older downtown or neighborhood shopping district built before 1940.

In a transit village decisions about density, building heights, street design, sidewalk widths, crosswalks, flow of traffic and parking are made with the intent of encouraging people to walk and use public transit rather than giving priority to cars. Although cars are the fastest to get around most suburban areas, once traffic reaches a certain level the cars become part of the problem and getting people away from driving becomes part of the solution.

The basic idea behind a transit village is that for buses, light rail and subways to be convenient for riders, they must run frequently. In order to run frequently, they need to have a lot of passengers going to the same place. Higher density areas have more destinations, drawing more passengers and therefore making more frequent transit economically feasible for the transit agency and more convenient for the people using it.

Studies have found that people who live in transit villages use their cars less and walk and take public transit more. This more urban lifestyle is attractive to a lot of people, although not to everyone, of course. Although conventional wisdom tells us that you have to have a car to live in Los Angeles, one in six households in the City have no car at all. A transit village would be a smart choice for the 57% of households in the City that have one or no car at all.

A transit village is not a one-size-fits-all model for development, but rather a way of coordinating our local land use and transportation planning so they re-enforce each other.

TOD Incentives

While support for smart growth and transit-oriented developments is growing, most developers still perceive these projects as high risk. By creating incentives for developers to build TOD and smart growth projects, cities and counties can help lower the risk for developers while encouraging efficient land use and the creation of urban transit villages.

Parking reductions
Reducing the minimum parking requirements or setting maximum parking requirements around major transit stops lowers the construction costs of development. Less parking also encourages transit use by making it less convenient and more costly to drive. (See Rethinking Parking)

Density bonuses
Increased density allows a developer to take advantage of greater economies of scale. Allowing higher densities near transit gives more people easy access to transit from their home or work, encouraging transit use. Creating compact, pedestrian-friendly neighborhoods can also help support neighborhood-serving local businesses.

Restricting car-oriented uses
Limiting businesses that generate a large number of car trips or require significant amounts of parking ensures that we put higher densities where it makes sense near major transit stops where people have workable alternatives to driving.

Location Efficient Mortgages
A "Location Efficient Mortgage" is a new type of mortgage that rewards households with lower transportation expenses by allowing them to qualify for larger loan amounts. LEMs enable more households to purchase a home while giving incentives to live in areas that are well-served by transit.

Property tax abatements
Oregon and Washington State allow cities and counties to grant property tax abatements to developers of higher-density, mixed-use, residential developments to help with the creation of affordable housing and transit villages.

Planning for transit villages
The State of California encourages TOD development by offering various incentives to cities and counties that adopt transit village plans.

Case Studies

City of Los Angeles

Grants a 35% affordable housing density bonus by right for developments within 1,500 feet of a major transit stop. (Citywide Affordable Housing Incentives)
Permits one parking space per unit for affordable housing developments with 1,500 feet of a major transit stop. (Citywide Affordable Housing Incentives)
Allows 15% parking reduction within 1,500 feet of Metro Rail Red Line. (Vermont/Hollywood Station Area Neighborhood Plan)

Los Angeles County

Allows 40% parking reduction for new residential development, and 60% reduction for some commercial and civic activities in TOD districts established around the Metro Blue Line stations at Slauson, Florence, Firestone and Imperial. (Transit Oriented Districts)

City of Pasadena
The City of Pasadena is currently considering a TOD ordinance that would apply to development within one-quarter mile of Metro Gold Line stations and would:

Prohibit non-transit-oriented uses, including drive-thru businesses, auto-repair and service stations, car washes, warehouses and public storage, and car dealerships.
Reduce minimum parking requirements by 25% and establish parking maximums for both residential and commercial development.

Visit these websites to learn more about transit-oriented development:

Top