Booker Pushes $300 Billion Plan for Affordable Housing Near Transit
Bill would help build more than 2 million homes nationwide and invest $300 billion in affordable housing near transit
WASHINGTON, D.C. – RealEstateRama – U.S. Senator Cory Booker (D-NJ) introduced the Transit-Oriented Housing Development Act, legislation to increase affordable and workforce housing near major transit hubs across the country. The bill is projected to create more than two million new housing units and expand access to affordable homes for low-income families. It would also invest $300 billion over ten years in the national Housing Trust Fund to support affordable housing construction.
“Our nation faces a housing crisis that threatens the very bedrock of the American dream. For millions of families around the nation and in New Jersey, affordable housing is simply out of reach,” said Senator Booker. “When I was Mayor of Newark, I doubled the production of affordable housing across the city, even when the housing market faced severe turbulence. I am proud to build upon that success at the federal level because it will help address one of New Jerseyans’ most urgent challenges; ensuring our families have access to more affordable housing, high-quality schools and opportunities to thrive.”
What the bill does
The legislation builds on existing federal tools to expand housing supply. It strengthens the Low-Income Housing Tax Credit (LIHTC) by raising private activity bond allocations and creating a dedicated set-aside for mixed-income workforce housing within a half-mile of transit hubs, including rail stations and bus corridors.
Specifically, the Transit-Oriented Housing Development Act would:
Prioritize transit access: Require projects to be within a half-mile of major transit hubs, connecting residents to jobs, education and essential services.
Strengthen workforce housing incentives: Offer additional tax credit value for mixed-income developments that meet prevailing wage standards.
Expand LIHTC: Increase tax-exempt private activity bond authority by 30% and enhance the 4% tax credit for projects that pay prevailing wages, making projects more feasible in high-cost areas.
Invest in the Housing Trust Fund: Provide $300 billion over ten years, prioritizing transit-oriented developments that serve very low- and extremely low-income households.
Set clear affordability standards: Reserve units for households earning up to 120% of area median income (AMI), with at least 20% of units for households at or below 50% AMI and 10% at or below 30% AMI.
Supporters respond
“Housing affordability is an escalating crisis in New Jersey and communities across the country,” said Arnold Cohen, senior policy advisor for the Housing and Community Development Network of NJ. “The need for more homes people can afford is undeniable, and this bill would make a significant investment in building those homes where people can connect to jobs, transit, and opportunity. By expanding access to housing near transit, it would also help communities attract and retain workers, support local businesses, and strengthen our economy.”
“We appreciate Senator Booker introducing the Transit-Oriented Housing Development Act to address our state and national housing affordability challenges in a way that supports transit-oriented development, smart growth, and the creation of more walkable places and connected communities. By expanding funding for the Low-Income Housing Tax Credit and the National Housing Trust Fund, this bill will help create more housing affordable to a range of different incomes, helping New Jersey retain more individuals and families struggling with the cost of housing,” said Peter Kasabach, Executive Director of New Jersey Future.
“Newark is a transit-rich city, and too many of our families have been priced out of the neighborhoods they built. In Lower Broadway, only 15 percent of residents own a car, yet many live too far from Broad Street Station to walk to it. Senator Booker’s Transit-Oriented Housing Development Act would help communities like ours build workforce housing where working families need it most: close to the trains and buses that connect them to jobs, school, and opportunity,” said Peter Rosario, President and CEO of La Casa de Don Pedro.
“In a state as densely populated as New Jersey, it makes sense to encourage development where transit infrastructure already exists. New Jersey Realtors® supports transit-oriented initiatives that create new housing opportunities and help address the ongoing housing supply and affordability challenges. We applaud the senator for his work to address problems that uniquely affect housing in New Jersey,” said Doug Tomson, New Jersey Realtors® CEO.
Read the full text of the bill here.
