An experiment aimed at turning transportation dollars into financial incentives for infill housing near to public transit has won San Mateo County increasing recognition and has prompted the Bay Area's Metropolitan Transportation Commission to follow in their footsteps with a larger regional effort. The San Mateo City/County Association of Governments (CCAG) first set aside $2.2 million in State Transportation Improvement Program (STIP) funds in early 1999, reserving the money for infill housing projects with a minimum density of 40 units per acre and within a third of a mile from a transit station. County modeling exercises ranking congestion relief strategies showed increased housing close to reliable transit as one of the more promising approaches. Five projects countywide were awarded grants based on a $2,000 per bedroom incentive.

State highway funds can't and won't be used as direct subsidies for the housing projects, local governments will instead receive desperately needed cash for transportation projects in return for an obligation to have the housing on- line within three years. The success of San Mateo County's program has since enticed the Bay Area's nine county Metropolitan Transportation Commission to replicate the approach with their newly unveiled Housing Incentive Program (HIP). The MTC effort will set aside $9 million in federal transportation funds for the first round of competitive regional grants expected to be released before the end of the year.

For more information about both housing incentive programs, call Karen Frick at MTC, 510.464.7700 or visit www.mtc.ca.gov/projects/livable_communities/lchip.htm.