eTOD planning for TVI

DOT should require an affordable housing set-aside ordinance and eTOD planning for TVI

The Transit Village Initiative (TVI) is New Jersey’s flagship TOD program, although there are some who question its utility. In the initiative's 20 years of existence, the New Jersey Department of Transportation has approved just 33 Transit Villages out of the state’s 244 transit station areas.187 Developers often liken it a “gold star” that does little to spur development unto itself.188 Some municipal officials echo that sentiment. While the TVI is not a powerful engine of TOD, it serves a purpose as a technical assistance program for municipalities. The State should refashion TVI as an eTOD program, paired with a requirement to comply with the Fair Housing Act and DCA planning grants.

NJDOT coordinates the TVI, which also involves NJT, DCA, NJHMFA, and other agencies. Municipalities must prove they have zoned for TOD, adopted a resolution stating their willingness to grow, made pedestrian and bicycle infrastructure improvements, and met other criteria. The application process guides municipalities toward certain planning goals. In addition to recognition as a Transit Village, municipalities can apply for grants to fund streetscape improvements from a $1 million annual TVI budget administered by NJDOT.

For affordable housing, the TVI only requires that land use regulations include a statement that the municipality will comply with State law.189 FSHC recently sent a letter to the New Jersey Attorney General arguing the 2008 amendments to the Fair Housing Act require all new residential construction in Transit Villages to set aside 20% of units as affordable.190 This part of the statute is not enforced by the State nor have the courts weighed in.

NJDOT should make changes to the TVI application, which has not been updated since 2012. To help fund the more extensive planning this report recommends below, DCA should award grants for planning from the Innovation Fund set-aside of the Affordable Housing Trust Fund. This funding would also ensure

44 the cost of planning activities does not prevent lower-income communities from applying to the TVI. DOT should add the following to the TVI application:

Towns with a Mount Laurel obligation must have zoning with a 20% set-aside and that allows for sufficient density for inclusionary housing within the station walkshed

Towns with an Unmet Need under Mount Laurel must release a request for expressions of interest for the development of inclusionary housing within the walkshed

Require dedicated engagement sessions on affordable housing and residential segregation

Require that the governing body resolution include a commitment to build affordable housing within the transit station walkshed

Prepare a municipal affirmative marketing plan with the goal of marketing market rate and subsidized housing to a racial demographic mix representative of the COAH housing region

Require that the housing element of the master plan identify where affordable housing will be built within the station area walkshed

Require that the Housing Element and Fair Share Plan be included in the TVI application

Conduct a demographic analysis of the walkshed, including data on race, income, tenure, household size, and condition of housing

Conduct an evaluation of the station property under control of the transit agency as a site for affordable housing, including an analysis of necessary parking reforms and documented engagement with the relevant transit agency