History: Transit Oriented Development (TOD) is a form of development that promotes a mixture of uses such as housing, retail, services, jobs, and open space projects within walking distance of transit. TODs are compact and typically feature pedestrian and bicycle connections, reduced or shared parking, increased density, and building orientation towards the pedestrian environment.  Benefits, many of which help to reduce disparities, include lower combined housing and transportation costs, a greater range of housing options, a reduced need to drive and own vehicles, and improved connections to employment and service destinations. For example, many past Hennepin County TOD-funded projects have provided workforce housing immediately adjacent to public transportation access or have provided transit-accessible employment opportunities.

Additionally, TOD supports Hennepin County’s Climate Action Plan through more efficient use of land and infrastructure, preservation of open space, reduced vehicle miles traveled and reduced emissions through increased walking, biking, and transit ridership. TOD contributes to improved public health by creating walkable neighborhoods.

On February 12, 2003, the Housing and Redevelopment Authority (HCHRA) Board approved TOD Program Guidelines and Criteria (Resolution 03-HCHRA-04). The Guidelines and Criteria support infrastructure and development projects along the county’s transit corridors that enhance transit usage. Since 2003, the HCHRA has awarded approximately $40.3 million to over 153 TOD projects, creating or retaining over 9,400 housing units and 2,975 jobs, and leveraging more than $1.6 billion in development.

The 2021 HCHRA budget includes $2.2 million in funding for the TOD Program (Resolution 20-HCHRA-0060).

In January 2021, a Request for Proposals (RFP) garnered 22 applications requesting a total of $10.3 million in funding.

Proposals were reviewed by a multi-agency panel consisting of Hennepin County, Ramsey County, Metro Transit, and Metropolitan Council staff and urban design professionals. An independent financial consultant was engaged to conduct a financial analysis, advise staff on financial feasibility, and to propose appropriate award terms. The evaluation process also includes close coordination between the TOD Program, Affordable Housing Incentive Fund, and HOME Investment Partnerships Program to fund as many priority projects as possible meeting the goals of each respective program.

Attachment A provides a summary of the eight applications recommended for funding. 

TOD guidelines require that the municipality in which the project is located approve the project seeking TOD funding, and that the project generally be in a redevelopment area or district adopted in accordance with Minnesota Statutes, Section 469.

Housing/Mixed-Use Projects:

Recommended funding for the eight housing and mixed-use projects below will provide 1.269  housing units including 581 affordable units, over 59,000 square feet of commercial and community space, and 98 total new or retained jobs supporting transit-oriented communities. The total investment value of these projects is approximately $365 million.

Current Request: Negotiate six grant agreements during the period May 12, 2021 through December 31, 2023 with a combined total not to exceed amount of $1,600,000 and two loan agreements during the period May 12, 2021 through May 10, 2066 with a combined total not to exceed amount of $550,000 for 2021 TOD projects.

Impact/Outcomes: Eight projects receiving awards will leverage approximately $365 million in total investment value to create 1,269 housing units, including 581 affordable units, over 59,000 square feet of commercial and community space, 98 new or retained jobs, and improved connections to support TOD in current and planned light rail transit, bus rapid transit, and within the high-frequency bus network.