Bloomberg, February 29, 2024, Why A White House Plan To Fund Office-To-Housing Conversions Isn’t Working
In October, the Biden administration directed USDOT to make $35 billion in financing available for transit-oriented development projects to help speed the transformation of underutilized office space into much-needed housing. The funds, typically used to finance rail infrastructure, could now be tapped to help developers of office-to-residential conversions sited near transit facilities.
Others who have tried to tap this financing report similar barriers. Lengthy approvals, strict environmental reviews and tight credit criteria — standards designed with interstate rail projects in mind — have put this financing out of reach for many developers. And a requirement that projects be located within a half-mile of a train station, not just local forms of transit, potentially disqualifies entire cities. So far, no transit-oriented development loans have closed under these Build America Bureau funds, though three projects are currently in an active underwriting phase.
