Washington, DC – Today, Representatives Scott Peters (D-CA-50) and Blake Moore (R-UT-01) and Senators Brian Schatz (D-HI) and Jim Banks (R-IN) reintroduced the bipartisan, bicameral Build More Housing Near Transit Act to encourage the construction of low- and middle-income housing in transit-served, walkable locations. Rep. Peters previously introduced a standalone House version of the legislation in 2019 and a bicameral version in 2021 and 2023.  

The bill incentivizes the development of more housing near transit stops by tying the competition for federal transit funding to state and local housing plans along transit corridors. According to the National Low Income Housing Coalition, the United States has a shortage of 7.1 million affordable rental homes. In San Diego County alone, there is a shortage of nearly 100,000 homes for extremely low-income renters and that gap is nearly one million homes statewide. It is clear California is not doing enough to keep pace with growing demand – in 2024, the state only permitted 114,069 homes, according to California’s Housing and Community Development Department. Since 2021, San Diego County has permitted only 48,765 homes, just 28.4 percent of the total needed to meet demand according to the Regional Housing Needs Allocation formula.  

“The cost of housing remains the greatest barrier to prosperity in California, forcing people to move farther and farther from where they work, which means longer commutes and more air pollution,” said Rep. Peters. “Our bill will get more cars off the road by maximizing federal investments in public transportation and will increase affordable housing options for families across the country.  As a Co-Chair of the YIMBY Caucus and founding member of the growth–oriented Build America Caucus in Congress, I look forward to getting this commonsense legislation across the finish line to help relieve the pressure on cost-burdened Americans.” 

“Housing has consistently been one of the most pressing issues for Utahns since I joined Congress. In some ways, Utah is a victim of its own success. Our incredible quality of life, economic opportunity, and low unemployment rates have put significant strains on our housing market, which has priced out young families from starter homes and presented major challenges to servicemembers at Hill Air Force Base,” said Rep. Moore. “I’m proud to introduce legislation that will condition federal transit grants on whether states are reducing zoning barriers for housing near new bus or rapid transit lines, something that Utah has already been doing for years through the leadership of partners such as UTA along the Wasatch Front and Connect in Cache Valley. The end result will bring more of Utah’s common-sense policies to Washington and help more families find affordable and accessible homes.” 

“The clearest way out of our national housing shortage is by building more housing,” said Senator Schatz. “Our bipartisan bill incentivizes cities and towns to build housing when they expand or redevelop their public transit systems. This will help put more families in homes, grow local economies, and cut carbon pollution. It’s a win for everyone.” 

“This bill makes it easier for communities to build homes for working families by cutting red tape and giving them the freedom to create strong, family-friendly neighborhoods near public transit,” said Senator Banks. 

The Build More Housing Near Transit Act would direct the Department of Transportation to incentivize local governments to promote housing development and regional growth in and around the transit corridors of future New Starts projects. Specifically, this bill will amend U.S. Code Section 5309, which governs the application process for capital investment grants to: 

• Direct the Secretary of Transportation to boost a transit project’s rating if the project includes pro-housing policies for areas along the project route; 

• Define pro-housing policies as a state or local action to remove regulatory barriers to constructing or preserving housing, reduce or eliminate parking minimums or minimum lot sizes, establish by-right approval processes for multi-family housing, commit substantial public property to affordable housing development or preservation, and eliminate or raise residential property height limits; and 

• Engage the Department of Housing and Urban Development to develop a methodology to evaluate the merits of the pro-housing policies documented in a CIG application. 

A letter of support from more than 100 national, state, and local groups, including Circulate San Diego, is available here. A full list of supporting organizations is available here. 

“In San Diego we have made a conscious effort to spur housing development along our growing public transit system,” said City of San Diego Mayor Todd Gloria. “The Build More Housing Near Transit Act will provide additional incentives to create affordable housing near transit, helping our region address both our housing affordability and climate crises.” 

“America is experiencing a severe housing shortage that affects every aspect of American lives and the economy," said Mike Kingsella, CEO of Up for Growth Action. "The Build More Housing Near Transit Act addresses the critical link between transportation and housing and would create greater access to affordable commutes and abundant housing. We applaud the lead sponsors for introducing this bill, serving as an example of how the federal government can use its leverage to ensure the right types of housing are available in the places people want to live. 

“The United States needs to build millions of new homes and rental units for low- and middle-income Americans,” said David Dworkin, President and CEO, National Housing Conference (NHC). “The Build More Housing Near Transit Act would help unlock supply and smarter, more efficient development by linking housing and transit planning and development. Transit-oriented development can help reduce costs, grow local economies, increase affordable housing supply, and increase access to opportunities for families. The National Housing Conference is proud to endorse this legislation, and we are grateful to the leadership of Representatives Scott Peters and Blake Moore, and Senators Brian Schatz and Jim Banks.” 

"For decades, the federal government has funded mass transit projects in cities whose growth control laws do not allow people to live near and ride on transit,” said Alex Armlovich, Senior Housing Policy Analyst, Niskanen Center. “The Build More Housing Near Transit Act finally corrects this. It protects transit riders and the federal taxpayer from spending scarce transit capital on projects doomed by rigid zoning regulations to low housing growth and low future ridership, while uplifting projects in localities that welcome housing & transit ridership growth. This bill is the essential first step in restoring bipartisan confidence in America's mass transit investments for taxpayers and transit riders alike." 

Full text of the legislation here. 

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