The development of the new rail system will stimulate economic development opportunities adjacent to and
surrounding a number of the new rail stations. Particularly in urban metro settings, proximity to rail drives
up property values and can lead to significant gentrification. Ironically, this can have the impact of
decreasing rail ridership. Lower income populations are typically a more highly transit dependent
population than the upper income populations which replace them. It is critical, as a result, to plan well in
advance policy measures that will assure equitable development adjacent to and surrounding the new rail
stations, particularly those located in urban metro settings.
RECOMMENDATIONS
1. Designate or acquire specific sites near new rail stations for affordable housing development:
By designating specific sites near rail stations for affordable housing, the City can create an
affordability anchor that ensures a degree of economic diversity near rail stations.
Dedicate public surplus lands to affordable housing: The City can implement a policy to
dedicate undeveloped or underutilized surplus property surrounding new rail stations and rail
lines to affordable housing development, particularly the sites that the rail authority acquires
and then uses to stage the construction of the rail line and rail stations.
Create a TOD Affordable Housing Land Bank: The City should consider using existing
affordable housing funds to acquire sites near new rail stations for the purposes of creating badly
needed housing for people making 120% of median income and below.
Fund neighborhood level engagement in the TOD planning process: The city should use project
dollars to fund community based groups to engage the neighborhood residents near the new rail
station sites to engage in rail station planning process. In built out urban environments, creating
community asset maps would be an important step to ensure that critical community assets are
preserved, and it would also help to identify asset gaps around the route stops. This process can
help decide where affordable housing should be sited in relation to rail stations.
2. Create Transit Oriented Development Zones around new rail stations to help finance
affordable housing development: Property values surrounding rail stations will likely see
significant increases relative to the rest of the area. To a large extent, these increases will be driven
by the rail which is a publicly funded project. There is a strong public policy justification to
implement policies within areas surrounding the new rail station to capture back some of this
increased land value in order to fund public benefits like infrastructure development and affordable
housing.
TOD Tax Increment Financing: Create redevelopment zones surrounding rail stations by
dedicating increases in property tax values from surrounding areas to fund improvements
specifically in those areas. Require that enough of the TIF (at least 20% and perhaps as much as
50%) go toward financing affordable housing development as well as preservation of existing
affordable housing near transit stations. Use the TIF to offset the gentrification that will follow
the site of the new rail stops.
FACE HAWAII (Faith Action for Community Equity) is a 15 year old faith and community based
organization that seeks to project values into the public square. We join our voices to the political, civic,
business and labor leaders who work for the good of the people of Hawaii. We are based on the islands of
Oahu and Maui.