Transit Oriented Development Act of 2026
Sponsored By: Representative Case, Ed [D-HI-1]
Introduced
Summary
Increases tax credit value for affordable housing built near transit. The bill would boost the Low-Income Housing Tax Credit eligible basis for projects in designated transit-oriented development areas and require a HUD study to recommend cost-of-living adjustments to credit allocations.
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- Developers: New buildings would get an eligible basis equal to 150% of the normal basis, and rehabilitation costs for existing buildings would be counted at 150%. That increase rises to 155% for projects in Hawaii, Alaska, and U.S. territories.
- Low-income households: The change is meant to spur more affordable units close to transit. A transit-oriented development area must be within one-half mile of a rail, bus, harbor, or waterway station and zoned for high density.
- States and HUD: State housing credit agencies and HUD must designate TOD areas. HUD must complete a study within one year and recommend formulas to adjust yearly LIHTC allocations to reflect geographic cost differences.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher tax credit for transit housing
If enacted, this bill would raise the low-income housing tax credit (LIHTC) basis for buildings in HUD- and state-designated transit-oriented development (TOD) areas. For new buildings it would treat the eligible basis as 150% of the usual amount. Rehab expenses for existing buildings would also be treated as 150%. In Hawaii, Alaska, and U.S. territories those percentages would be 155%. A TOD area would be a HUD-and-state-designated area within 1/2 mile of a rail, bus, harbor, or waterway station and zoned for high density. Designated TOD portions of an MSA could not cover more than an area with 20% of that MSA's population, with a comparable limit for nonmetro areas. Projects with bases set under subparagraph (B) would not get the increase, and the change would apply only to buildings placed in service after enactment.
Sponsors & CoSponsors
Sponsor
Case, Ed [D-HI-1]
HI • D
Cosponsors
Del. Moylan, James C. [R-GU-At Large]
GU • R
Sponsored 6/11/2026
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 6/11/2026
Roll Call Votes
No roll call votes available for this bill.
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