H.R. 10019: Incentivizing Value Capture for Greener Transportation Act

This bill would direct the U.S. Department of Transportation to support “value capture” strategies for funding public transportation and related development. In plain terms, it would help states and local governments find ways to use some of the extra land and property value created by transit projects to help pay for those projects.

What “value capture” means here

The bill defines value capture as collecting some of the added economic value that comes from government investments, policies, or activities. That could include things like increased property values near new transit lines or stations, with some of that value used to support further transit or development projects.

What the grant program would do

The bill would allow the Secretary of Transportation to provide technical assistance grants to state and local governments. These grants could help recipients:

• Develop more value capture methods to create long-term funding for mobility and public transportation;
• Improve public transportation and access to mobility;
• Build partnerships that increase local capacity to fund transit, inclusive economic development, and transit-oriented development.

Conditions for receiving grants

To qualify, applicants would need to explain how the money will increase transit capacity and ridership and reduce carbon emissions, vehicle miles traveled, and congestion.

They would also have to keep their own spending at least at prior levels for related programs. If a state or local government reduces its own spending on value capture, public transportation, or affordable transit-oriented development, federal support could be reduced by the amount of the cut. The Secretary could waive this requirement in some cases, such as major financial hardship or natural disasters.

Labor and spending rules

Projects financed by these grants would have to follow Davis-Bacon wage rules, meaning workers on covered construction projects must be paid at least the locally prevailing wages. The bill also says grant money must supplement, not replace, existing federal, state, and local funding.

Federal planning and guidance

The bill would require the Department of Transportation, working with state transportation departments and planning organizations, to develop voluntary, consensus-based standards, policies, and best practices for value capture approaches. It would also require a public report cataloging state and local laws and policies that use value capture or value sharing to support transit and transit-oriented development, followed by dissemination of best practices.

Reporting and evaluation

Any grantee would have to evaluate the results within three years of receiving funds, focusing on whether the funds increased transit capacity and ridership and reduced emissions, vehicle miles traveled, and congestion.

Definitions of development targeted by the bill

The bill defines transit-oriented development as a mix of commercial, residential, office, and entertainment uses near transit stations, with an emphasis on affordable housing and commercial space. It defines:

• Affordable housing as housing costing no more than 30% of a family’s income;
• Affordable commercial space as below-market-rate space intended to support or protect small and disadvantaged businesses.

Relevant Companies

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