Connecticut creates fund to encourage transit-oriented developments

Connecticut Gov. Dannel Malloy this week announced the creation of a $15 million Transit Oriented Development Pre-Development and Acquisition Fund to provide financing that will encourage developers to carry out transit-oriented development (TOD) in communities with station stops along the CTFastrak and New Haven-Hartford-Springfield transit corridors.

The state and the Connecticut Housing Finance Authority (CHFA) will each contribute $1 million to the fund, which will be added to $13 million of private capital provided by LISC (Local Initiatives Support Corporation) Connecticut, which will also serve as the fund manager, state officials said in a press release.

TOD typically involve a mix of housing, retail and commercial office space near transit hubs to encourage the use of mass transit.

"With the investment of $1 million in state funds and $1 million from CHFA, we will leverage at least $13 million in private funds from LISC and potentially millions more from banks, developers and other investors in order to create jobs, reduce congestion by encouraging mass transit ridership, build new affordable housing in walk-able communities near transit and improve our quality of life," said Malloy.

The TOD fund will include $1 million from the Office of Policy and Management, $1 million from CHFA and $13 million from LISC, which was selected the TOD fund manager through a competitive process.