The Center for Transit-Oriented Development Estimates that Overall Demand for Housing Near Transit Hubs will Grow from 6 Million to 15 Million Households by 2030
Many Americans live in the suburbs and commute daily to nearby cities. However, with transportation costs and traffic congestion both on the rise, there is a growing demand for housing near transit. In fact, the Center for Transit-Oriented Development estimates that overall demand for housing near transit hubs will grow from 6 million to 15 million households by 2030, which accounts for approximately one-quarter of all renters and buyers.
The Benefits of Transit-Oriented Development
Because supply has failed to keep pace with demand, cities and towns are increasingly looking to redevelop the areas surrounding transit stations into walkable “villages” that include both housing and amenities, such as shops and restaurants. The commonly-used term for this type of development is transit-oriented development or TOD.
Transit-oriented development is traditionally defined as high-density, mixed-use development within walking distance (typically 0.5 miles) of a transit station. Common features include a mix of market-rate and affordable housing together with retail service, shopping and restaurants, all within walkable distance from local transit.
As highlighted by the Center for Transit-Oriented Development, TOD can have a wide range of benefits, including increased transit ridership, reduced transportation costs for residents, less traffic congestion, more walkable neighborhoods, and economic revitalization. Communities including a combination of both affordable and market-rate housing can benefit from reduced income segregation and greater economic opportunities for lower-income residents.
Public-Private Partnerships Are Key to TOD Projects
Most TOD projects rely on partnerships between transit agencies, local governments, and private developers. Because of the sheer number of moving parts, TOD projects can face significant obstacles, which can make them time-consuming and expensive. Some of the hurdles that must be overcome include complex land acquisition and financing deals, lengthy permitting processes, affordable housing obligations, potential environmental remediation, and community opposition.
To encourage TOD projects, many states are establishing regulatory, planning and funding frameworks. Examples include land assembly, zoning changes and tax incentives. Many transit agencies have also begun to sell off vacant and underutilized property surrounding their stations so that it can be redeveloped.
Efforts are already moving forward. On October 3, 2019, NJ Transit issued a Request for Expressions of Interest (REOI) to identify a private developer or joint venture of developers to implement TOD projects on NJ Transit owned property adjacent to the River LINE Light Rail system.
The land spans the 37-mile River LINE right-of-way and includes 21 station areas across 15 municipalities. According to NJ Transit, its goal is to convert the land into vibrant TOD projects that support local and regional land use planning and economic development goals, along with its own transportation mission.
“This is a great opportunity for developers to get in on the ground floor and help create thriving local communities,” said NJ TRANSIT President & CEO Kevin Corbett. “So many cities and townships in New Jersey have grown and benefited from their proximity to NJ TRANSIT service, and we want to accelerate that growth in partnership with our host communities by promoting and encouraging mixed-use TOD on our River LINE Light Rail system.”
NJ Transit is seeking to obtain information and feedback to assess the viability of making all or a portion of its River LINE station area parcels available for redevelopment, and will review submitted EOI Responses to assess private and/or public interest in the River LINE properties, including market suitability, recommended land uses, potential opportunities and constraints, conceptual development scenarios and other factors that would inform overall project delivery. According to NJ Transit, if and when the agency elects to proceed with a project, it may issue a formal Request for Qualifications or Proposals for one or more station areas.
For businesses that are interested in transit-oriented development, the ability to anticipate potential obstacles and come up with creative solutions can reduce costs and delays. Accordingly, we encourage you to work with a knowledgeable New Jersey land use attorney who can help you successfully navigate the process.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Don Pepe, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
This article is a part of a series covering New Jersey’s new initiative to redevelop areas near public transit centers. Additional installments from the series are listed below:
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
