HUD Investments in Transit Oriented Development

1. HUD Investments in Transit Oriented Development Presented by Milton R. Pratt, Jr. for the “Local CDC’s State Support and Transit Oriented Development, A Peer Forum” Monday, January 9, 2005

2. What’s Driving Transit Oriented Development? • Increasingly long commutes. • Upsurge in gentrification in urban and inner ring areas. • Growing one or two adult households that want urban amenities without the long commutes.

3. What’s Driving Transit Oriented Development? • Smart Growth Development being embraced by local leaders. • Spurs re-development and urban renewal; reduces blight and increases opportunity for long term residents near transit stations.

4. HUD Investments in Transit Oriented Development • Metro System in Washington, D.C. • Metro previously sold land when it wanted to raise revenue; now they want to lease the land and increase long term revenue. • Metro issued an RFP requesting development proposals for mixed use development at sites above transit stations and on parcels nearby that Metro owns. • RFP requires Metro participate in profits in return for a long term ground lease.

5. HUD Investments in Transit Oriented Development • Prince Georges (PG) Metro Station • HUD is working with Prince Georges County on a ground lease project at the Metro stop. • This is still in the processing phase but officials are working towards settlement in late spring. • HUD is partnering in the plan to utilize the transit station as a way to develop an underserved area into a pedestrian friendly environment where residents can live, work and shop without getting in their cars.

6. HUD Investments in Transit Oriented Development • Prince Georges (PG) Metro Station • 22 acre site has been rezoned “transit district overlay zone”. • It includes a 260 unit HUD insured market rate apartment complex ($45 million HUD investment). • Included in the plan is 150,000 square feet of retail space and 250,000 square feet of office space. • An existing mall, across the street, is expanding to include a new Target.

7. HUD Investments in Transit Oriented Development • Anacostia Metro Station • A new Authority was incorporated a month ago to re-develop park land and residential housing along the waterfront which includes two Metro stations-Anacostia and Navy Yard. • $8 billion dollars in public and private development is anticipated over the next 20 years in the area.

8. HUD Investments in Transit Oriented Development • Anacostia Metro Station • Arthur Capper-Carrollsburg dilapidated 720 unit public housing complex will be rebuilt as a mixed-income complex with a HUD HOPE VI grant investment of $35 million. • A New York based developer is building Capital Towers which will include a 100 room hotel and 340 apartments with $49 million in HUD Section 220 monies.

9. HUD Investments in Transit Oriented Development • U Street Metro Station • Historically known as the black Broadway of D.C. where Duke Ellington lived and played with other jazz musicians in the clubs along that street. • HUD invested $37.5 million in Section 220 monies to help open the Ellington, a 364 market rate apartment building.

10. HUD Investments in Transit Oriented Development • U Street Metro Station • It’s currently 85% leased and has spurred additional development along that corridor. • Condominiums, single family homes and commercial development total more than $450 million dollars in additional investment.

11. HUD Investments in Transit Oriented Development • In Pennsylvania, HUD is investing in smaller development projects around transit stations. • HUD has invested $912,000 in CDBG funds in the Market Street Gateway in Upper Darby to halt the spread of blight.

12. HUD Investments in Transit Oriented Development • Market Street Gateway in Upper Darby is a three phase project: -First Phase will address parking, lighting and signage; -Second Phase will address public safety issues; and -Third Phase will include property maintenance activities like code enforcements.

13. HUD Investments in Transit Oriented Development • Montgomery County Projects - Norristown, $4 million in Section 108 funds for an office building next to the train station. - Hatboro, $150 thousand in CDBG funds for sidewalks and streetscape improvements near the train station. - Narbeth, $80 thousand in CDBG funds for sidewalks entering the train station.

14. HUD Investments in Transit Oriented Development • HUD is investing $240 thousand in CDBG funds for Scranton Projects for engineering fees; for sidewalk, pedestrian lighting improvements; and improvements to the historic facade of a building near the bus station.

15. Opportunities? • CDBG funded infrastructure and blight removal efforts targeted near transit redevelopment zones. • ADDI down payment funds targeted for buyers near transit stations. • FHA multifamily insurance 220 program that insures loans for multifamily housing projects in urban renewal areas, code enforcement areas and other areas where local governments have undertaken designated revitalization activities—transit redevelopment zones.

16. HUD Investments in Transit Oriented Development Today’s presentation is available at: http://www.hud.gov/local/index.cfm?state=pa&topic=news under the Highlights section.