H.R. 9267: Transit Oriented Development Act of 2026

This bill would change the federal low-income housing tax credit program to encourage more affordable housing near transit.

What the bill would do

• Increase the tax credit amount for certain projects near transit. For qualifying buildings in a transit-oriented development area, the bill would count the project’s eligible costs at 150% of their normal amount for tax credit purposes.
• Give a slightly larger increase in Alaska, Hawaii, and U.S. territories. In those places, the same eligible costs would be counted at 155% instead of 150%.
• Define qualifying transit-oriented development areas. These would be areas that:
  • are within one-half mile of a rail, bus, harbor, or waterway station, and
  • are zoned for high-density development.
• Limit how much area can be designated. In metropolitan areas, the areas designated for this purpose could not exceed a combined area covering 20% of the population of the metro area. A similar rule would apply to nonmetropolitan areas.
• Prevent double counting with another housing provision. If a project already qualifies for a different tax-credit basis increase for high-cost areas, it could not also be treated as being in a transit-oriented development area for this extra benefit.
• Apply only to future projects. The changes would apply to buildings placed in service after the bill becomes law.

HUD study

The bill would also require the Secretary of Housing and Urban Development to study how housing costs vary across the country based on geography and access to transit. Within one year, HUD would have to report to Congress with:

• the study’s findings, and
• recommended formulas for adjusting each state’s annual low-income housing tax credit allocation to reflect those cost differences.

Relevant Companies

• None found