Bill Overview
Title: Transit Oriented Development Act of 2022
Description: This bill increases the low-income housing tax credit for buildings in transit-oriented development areas. The bill defines a transit-oriented development area as a designated area located within 1/2 mile from a rail, bus, harbor, or waterway station and zoned for high density. It also provides for an increase in the credit for buildings in high cost areas in non-contiguous states (i.e., Alaska and Hawaii) and U.S. possessions. The bill directs the Department of Housing and Urban Development to study cost-of-living differences throughout the United States based on geographic location and proximity and accessibility to transit.
Sponsors: Rep. Kahele, Kaiali'i [D-HI-2]
Target Audience
Population: Individuals living in transit-oriented development areas worldwide
Estimated Size: 60000000
- Transit-oriented development is designed to concentrate housing in areas with good public transit access, typically areas within 1/2 mile of a transit station.
- A significant portion of the urban population in regions with extensive transit networks could benefit from increased availability of affordable housing options.
- The low-income housing tax credit (LIHTC) is targeted at creating affordable rental housing for low-income tenants, so the primary beneficiaries are low-income individuals and families.
- High density areas around transit stations are common in urban locales, affecting potentially large city populations.
- The bill's focus on Alaska, Hawaii, and U.S. possessions suggests an impact on a broad geographical range of locales where housing development costs are higher.
- Global urban population estimates suggest there are 50-60 million people living in transit-oriented development areas in cities worldwide.
Reasoning
- The Transit Oriented Development Act aims to increase affordable housing options near transit areas, impacting urban and suburban populations with transit access.
- Though major cities with established transit networks are the primary focus, the unique consideration for Alaska, Hawaii, and U.S. territories indicates geographic diversity in impact.
- The $1.5 billion year-one budget and overall $17.65 billion over 10 years suggest a substantial, though fixed, scope of influence—appropriate for local urban enhancements but limited on a national scale.
- Including unimpacted individuals ensures a representative sample as not everyone within urban transit zones will directly benefit from the policy.
Simulated Interviews
Retail Manager (Brooklyn, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- I worry about rent increases every year.
- Living near the subway is essential for my commute to work.
- Affordable housing in the area would be a big relief financially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Remote IT Technician (Anchorage, AK)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Rent here is really high, especially for working from home.
- Access to affordable housing would be great but I'm not sure it'll reach us directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Public School Teacher (Miami, FL)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- We could use better housing options closer to transit, but I'm not sure this will reach my area.
- Commutes are time-consuming without nearby options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Software Engineer (San Francisco, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I'm interested in how this could affect my investments in areas close to transit.
- It's always good for the city to have more affordable housing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Retired Nurse (Honolulu, HI)
Age: 62 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- Housing costs are too high for retirees like me.
- I'm hopeful this could lead to affordable options closer to bus stops because every little bit helps.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Barista (Phoenix, AZ)
Age: 26 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- It'd be awesome if more affordable housing popped up around here.
- Downtown is great, but some areas are too expensive for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Construction Worker (Dallas, TX)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Rent control would benefit us greatly.
- I'm skeptical if anything will change unless it's proven we benefit directly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Nurse (Chicago, IL)
Age: 31 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Any improvements in affordable housing here would be great.
- Rent and living expenses are a constant stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Freelance Graphic Designer (Seattle, WA)
Age: 45 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- I've seen rents rising, and I'm concerned.
- It's an exciting opportunity if these policies make affordable housing more available.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Musician (New Orleans, LA)
Age: 39 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Affordable housing is critical for me.
- This act sounds promising if it includes my area.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $1500000000 (Low: $1000000000, High: $2000000000)
Year 2: $1600000000 (Low: $1100000000, High: $2100000000)
Year 3: $1700000000 (Low: $1200000000, High: $2200000000)
Year 5: $1800000000 (Low: $1300000000, High: $2300000000)
Year 10: $1900000000 (Low: $1400000000, High: $2400000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The potential increase in cost-of-living in developed areas might counteract some affordability gains for low-income individuals.
- Non-contiguous states present unique challenges in logistics and construction costs that could influence the efficacy of these tax credits.