Transit-oriented development brings unique challenges in securing financing and turning a profit. For developers and communities hoping to see a mix of income levels in TOD housing, additional challenges must be overcome.
I appreciated the chance to write a guest blog on this topic in response to a recent Living Cities-sponsored webinar by Enterprise Community Partners and the Low-Income Investment Fund (LIIF). Despite challenges, there are indeed silver linings to the emerging TOD financing environment.
Here are a few highlights from the presentation by Brian Prater and Melinda Pollack :
- the importance of financing for acquisition, predevelopment and remediation for which a number of philanthropic and public resources are being developed;
- the growing gap in infrastructure funding- not only for the transit, but also for sewer, water, sidewalks and street connectivity;
- the importance of access to debt and equity financing during construction and permanent financing phases.; and,
- the need to move beyond individual project financing, in which investors require greater evidence on the reduced risk and performance of TOD projects.
To read the complete story, visit my blog posting "Searching for the Silver Lining in Financing Equitable TOD" at the Living Cities website.