Transit-Oriented Communities (TOC) Policy | Metropolitan Transportation Commission
Source: https://mtc.ca.gov/planning/land-use/transit-oriented-communities-toc-policy
Archived: 2026-04-23 17:15
Transit-Oriented Communities (TOC) Policy | Metropolitan Transportation Commission
Skip to main content
Thursday, April 16, 2026
Update
Transit-Oriented Communities (TOC) Policy
Transit-oriented communities (TOCs) feature housing and business development that is near to transportation, putting public transit in reach for more people and improving the quality of life in the Bay Area.
Credit
Karl Nielsen
Spring Webinar: Overview of MTC's TOC Incentive Program
On Wednesday, May 6, 2026, 10 to 11 a.m., join MTC staff for an overview of the TOC Incentive Program and associated program updates. More details below.
Register for the webinar.
Spring 2026 Transit-Oriented Communities (TOC) Updates
Metropolitan Transportation Commission Adopts $45 Million TOC Incentive Program
On February 25, 2026, the MTC Commission adopted the $45 million TOC Incentive Program (MTC Resolution No. 4754), including the TOC Evaluation Framework and Program Guidelines, as part of OBAG 4 (MTC Resolution No. 4740). Key program features include:
Eligibility Threshold
85-point minimum jurisdiction-wide average score.
Extended Deadline, But No Work-in-Progress Credit
The deadline has been extended to July 1, 2027. However, given the fully incentive-based structure and extended timeline, credit will not be provided for work-in-progress.
Senate Bill 79 Density Credit
All TOC areas subject to Senate Bill 79 (SB 79) will receive full credit for the Maximum Allowable Residential Density standard.
Housing Protection Policies
Jurisdictions may receive credit for one TOC housing protection policy (four points) through participation in a countywide protection program or a local policy/program. Credit for the second policy (four points) must be based on a local policy/program.
Additionally, jurisdictions may not receive TOC credit for Protection Policy 2 (No Net Loss and Right of Return), given recent changes in state law.
Spring Webinar: Overview of MTC's TOC Incentive Program
This webinar will provide local jurisdiction staff with an overview of MTC's TOC Incentive Program and associated program updates. MTC staff will walk through the final TOC evaluation framework, review the
OBAG 4
-specific adjustments, eligibility thresholds and award amounts, as well as administrative guidance updates. The session will also cover technical assistance resources available to jurisdictions as they prepare their submissions.
Webinar Date: Wednesday, May 6, 2026, 10 to 11 a.m.
Register for the webinar.
What is the TOC Policy?
Transit-oriented communities (TOCs) enable people to access and use transit more often for more types of trips by centering housing, jobs, services and shopping around public transit. They are places where people of all ages, abilities, income levels, and racial and ethnic backgrounds can live, work and thrive.
MTC’s TOC Policy is just one piece of
Plan Bay Area 2050+
, the region’s long-range plan for transportation, housing, the economy and the environment. The TOC Policy supports two high-impact Plan Bay Area strategies that will help the region reach ambitious targets for reducing greenhouse gas emissions:
Strategy H3: Allow a greater mix of housing densities and types in Growth Geographies
Strategy EC4: Allow greater commercial densities in Growth Geographies
Read
Plan Bay Area 2050+ Chapter 4: Developing the Plan
for details on strategy H3 and strategy EC4.
TOC Policy Goals
TOC Policy helps advance Plan Bay Area. The four goals below will make it easier for people in the Bay Area to live a car-free or car-light lifestyle:
Increase the overall housing supply in part by increasing the density for new residential projects. Prioritize affordable housing in transit-rich areas.
In areas near regional transit hubs, increase density for businesses and commercial development.
Prioritize bus transit, active transportation and shared mobility (such as bike share and car share) within and to/from transit-rich areas, particularly to
Equity Priority Communities
located more than one half-mile from transit stops or stations.
Support and build partnerships to create equitable transit-oriented communities within the San Francisco Bay Area.
TOC Policy Applicability
The TOC Policy applies to locations within a half-mile of existing and planned stops and stations served by one of the following:
BART, Caltrain, SMART, Capitol Corridor and ACE stations
Muni and VTA light-rail stations
Muni and AC Transit bus rapid transit stops
Ferry terminals
To learn more about where the TOC Policy applies, view a
map of existing and planned TOC areas
or a
spreadsheet of jurisdictions and TOC areas
subject to the OBAG 4 deadline, anticipated in early 2026.
Map of TOC Areas
Existing and planned TOC areas subject to the One Bay Area Grant (OBAG 4) deadline, anticipated in early 2026.
See the latest map.
List of Station Areas & Jurisdictions
A list of station areas and jurisdictions that are subject to the MTC Transit-Oriented Communities Policy.
See the list of locations.
TOC Policy Requirements
The policy requirements address the following:
Minimum residential and commercial office densities for new development;
Affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement;
Parking management; and
Transit station access.
View the
TOC Policy Overview
and
TOC Policy Requirements Checklist
to learn more.
Additional Details
Administrative Guidance
Following adoption of the TOC Policy, MTC staff began developing administrative guidance to explain the details of policy requirements and how local governments can submit documentation. MTC engaged in an in-depth process of outreach to local jurisdiction staff and other stakeholders to raise awareness of the TOC Policy, facilitate efforts toward policy consistency, and receive feedback on drafts of the administrative guidance.
Overall, changes made in response to comments have resulted in policy requirements that are less prescriptive and allow for greater flexibility for local conditions, while still having guidelines in place to ensure effective policies and meaningful outcomes.
Version 1.0 of the TOC Policy Administrative Guidance was published in fall 2024.
Version 1.1 of this guidance
was published in May 2025 and integrates insights gleaned from further engagement with local partners.
TOC Policy & OBAG 4
Future
One Bay Area Grant (OBAG) funding cycles (i.e., OBAG 4 and subsequent funding cycles)
will consider funding revisions that prioritize investments in transit station areas that are subject to and compliant with the TOC Policy. To ensure eligibility for OBAG 4 funding and any other discretionary funding that may be linked to TOC Policy consistency, jurisdictions should anticipate demonstrating policy consistency prior to adoption of OBAG 4 (expected in 2026). Consistency with the TOC Policy is voluntary for jurisdictions that want to advance the goals of Plan Bay Area or to be eligible and/or competitive for some MTC discretionary funding.
The process to confirm consistency will continue on a rolling basis until an anticipated deadline in early 2026 corresponding with OBAG 4.
MTC staff are doing proactive outreach to local jurisdiction staff to assist them with assembling the documentation needed to demonstrate consistency, updating their information for all TOC Policy requirements, and assessing where additional work is needed to achieve policy consistency.
TOC Policy Requirements for Transit Extension Funding
In October 2023, MTC adopted an amendment to the TOC Policy, which details TOC Policy standards for fixed-guideway transit extension projects seeking awards or allocations of regional discretionary capital funding. There are different expectations for TOC Policy consistency based on a transit extension project’s delivery stage, as follows:
Project Development/Environmental Review:
Project sponsors, and local jurisdictions as applicable, must provide a letter or resolution acknowledging that future allocation requests to MTC will be subject to the TOC Policy pursuant to later phases.
Project Design and Early Right-of-Way Acquisition:
Jurisdictions must commit in writing to take steps toward achieving consitency by 2026 for the station area(s) seeking funding.
Project Construction:
Jurisdictions do not need to submit a letter of commitment, but they should work with MTC staff to achieve consistency by 2026.
The project sponsor/implementing agency must include an acknowledgement or commitment letter or resolution, as applicable, in its request to MTC for regional discretionary funding.
Project sponsors and local jurisdiction staff can use the following templates for developing the required letter or resolution:
Templates for acknowledgement letter or resolution
Templates for commitment letter or resolution
Advancing Transit in Communities
MTC’s 2022 TOC Policy builds on the
Transit-Oriented Development Policy
, adopted in 2005. The TOC Policy reflects changes in regional transportation and land use trends since 2005, as well as new information from Plan Bay Area.
What are Growth Geographies?
In Plan Bay Area, Growth Geographies are locations used to guide where future growth in housing and jobs would be focused over the next 30 years. These locations are identified for growth either by local cities and counties or because they are located close to transit or access to opportunity. The four types of Growth Geographies in Plan Bay Area are:
Priority Development Areas (PDAs)
: Areas generally near existing job centers or frequent transit that have been identified by towns, cities or counties for housing and job growth
Priority Production Areas (PPAs)
: Locally identified places for job growth in middle-wage industries like manufacturing, logistics or other trades. An area must be zoned for industrial use or have a strong industrial use to be a PPA
Transit-Rich Areas (TRAs): Areas near rail, ferry or frequent bus service that were not already identified as PDAs. Specifically, these are areas where at least 50% of the area is within 1/2 mile of an existing rail station or ferry terminal (with bus or rail service), a bus stop with peak service frequency of 15 minutes or less, or a planned rail station or planned ferry terminal (with bus or rail service)
High-Resource Areas (HRAs): Places identified by the state that have well-resourced schools and access to jobs and open space – among other advantages – that may have historically rejected more housing growth. This designation only includes places that meet a baseline transit service threshold of bus service with peak headways of 30 minutes or better
Related Documents
Transit-Oriented Communities Incentive Program (MTC Resolution No. 4754)
414.65 KB
pdf
Transit-Oriented Communities Policy (MTC Resolution No. 4530), Revised October 25, 2023
400.23 KB
pdf
MTC Administrative Guidance: Transit-Oriented Communities Policy
1.09 MB
pdf
TOC Templates for Acknowledgement Letter and Resolution for Transit Extension Funding
21.32 KB
docx
TOC Templates for Commitment Letter and Resolution for Transit Extension Funding
23.73 KB
docx
Digital Library
Related News
March 9, 2026
El Cerrito Plaza BART Station affordable housing gets BAHFA assist
October 1, 2024
MTC Announces $60 Million in Planning and Capital Grants
Grantee Resources
Resources for jurisdictions that are applying for Transit-Oriented Community (TOC) grants.
See the grantee resources.
Transit-Oriented Communities (TOC) Technical Assistance
Resources on the Technical Assistance Portal to help jurisdiction staff meet the requirements of the TOC Policy.
See technical assistance at abag.ca.gov.
Plan Bay Area 2050+
Plan Bay Area 2050+ is the adopted long-range plan. It charts a course for a Bay Area that is affordable, connected, diverse, healthy and vibrant for all residents through 2050 and beyond.
Visit PlanBayArea.org to learn more.
Skip to main content
Thursday, April 16, 2026
Update
Transit-Oriented Communities (TOC) Policy
Transit-oriented communities (TOCs) feature housing and business development that is near to transportation, putting public transit in reach for more people and improving the quality of life in the Bay Area.
Credit
Karl Nielsen
Spring Webinar: Overview of MTC's TOC Incentive Program
On Wednesday, May 6, 2026, 10 to 11 a.m., join MTC staff for an overview of the TOC Incentive Program and associated program updates. More details below.
Register for the webinar.
Spring 2026 Transit-Oriented Communities (TOC) Updates
Metropolitan Transportation Commission Adopts $45 Million TOC Incentive Program
On February 25, 2026, the MTC Commission adopted the $45 million TOC Incentive Program (MTC Resolution No. 4754), including the TOC Evaluation Framework and Program Guidelines, as part of OBAG 4 (MTC Resolution No. 4740). Key program features include:
Eligibility Threshold
85-point minimum jurisdiction-wide average score.
Extended Deadline, But No Work-in-Progress Credit
The deadline has been extended to July 1, 2027. However, given the fully incentive-based structure and extended timeline, credit will not be provided for work-in-progress.
Senate Bill 79 Density Credit
All TOC areas subject to Senate Bill 79 (SB 79) will receive full credit for the Maximum Allowable Residential Density standard.
Housing Protection Policies
Jurisdictions may receive credit for one TOC housing protection policy (four points) through participation in a countywide protection program or a local policy/program. Credit for the second policy (four points) must be based on a local policy/program.
Additionally, jurisdictions may not receive TOC credit for Protection Policy 2 (No Net Loss and Right of Return), given recent changes in state law.
Spring Webinar: Overview of MTC's TOC Incentive Program
This webinar will provide local jurisdiction staff with an overview of MTC's TOC Incentive Program and associated program updates. MTC staff will walk through the final TOC evaluation framework, review the
OBAG 4
-specific adjustments, eligibility thresholds and award amounts, as well as administrative guidance updates. The session will also cover technical assistance resources available to jurisdictions as they prepare their submissions.
Webinar Date: Wednesday, May 6, 2026, 10 to 11 a.m.
Register for the webinar.
What is the TOC Policy?
Transit-oriented communities (TOCs) enable people to access and use transit more often for more types of trips by centering housing, jobs, services and shopping around public transit. They are places where people of all ages, abilities, income levels, and racial and ethnic backgrounds can live, work and thrive.
MTC’s TOC Policy is just one piece of
Plan Bay Area 2050+
, the region’s long-range plan for transportation, housing, the economy and the environment. The TOC Policy supports two high-impact Plan Bay Area strategies that will help the region reach ambitious targets for reducing greenhouse gas emissions:
Strategy H3: Allow a greater mix of housing densities and types in Growth Geographies
Strategy EC4: Allow greater commercial densities in Growth Geographies
Read
Plan Bay Area 2050+ Chapter 4: Developing the Plan
for details on strategy H3 and strategy EC4.
TOC Policy Goals
TOC Policy helps advance Plan Bay Area. The four goals below will make it easier for people in the Bay Area to live a car-free or car-light lifestyle:
Increase the overall housing supply in part by increasing the density for new residential projects. Prioritize affordable housing in transit-rich areas.
In areas near regional transit hubs, increase density for businesses and commercial development.
Prioritize bus transit, active transportation and shared mobility (such as bike share and car share) within and to/from transit-rich areas, particularly to
Equity Priority Communities
located more than one half-mile from transit stops or stations.
Support and build partnerships to create equitable transit-oriented communities within the San Francisco Bay Area.
TOC Policy Applicability
The TOC Policy applies to locations within a half-mile of existing and planned stops and stations served by one of the following:
BART, Caltrain, SMART, Capitol Corridor and ACE stations
Muni and VTA light-rail stations
Muni and AC Transit bus rapid transit stops
Ferry terminals
To learn more about where the TOC Policy applies, view a
map of existing and planned TOC areas
or a
spreadsheet of jurisdictions and TOC areas
subject to the OBAG 4 deadline, anticipated in early 2026.
Map of TOC Areas
Existing and planned TOC areas subject to the One Bay Area Grant (OBAG 4) deadline, anticipated in early 2026.
See the latest map.
List of Station Areas & Jurisdictions
A list of station areas and jurisdictions that are subject to the MTC Transit-Oriented Communities Policy.
See the list of locations.
TOC Policy Requirements
The policy requirements address the following:
Minimum residential and commercial office densities for new development;
Affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement;
Parking management; and
Transit station access.
View the
TOC Policy Overview
and
TOC Policy Requirements Checklist
to learn more.
Additional Details
Administrative Guidance
Following adoption of the TOC Policy, MTC staff began developing administrative guidance to explain the details of policy requirements and how local governments can submit documentation. MTC engaged in an in-depth process of outreach to local jurisdiction staff and other stakeholders to raise awareness of the TOC Policy, facilitate efforts toward policy consistency, and receive feedback on drafts of the administrative guidance.
Overall, changes made in response to comments have resulted in policy requirements that are less prescriptive and allow for greater flexibility for local conditions, while still having guidelines in place to ensure effective policies and meaningful outcomes.
Version 1.0 of the TOC Policy Administrative Guidance was published in fall 2024.
Version 1.1 of this guidance
was published in May 2025 and integrates insights gleaned from further engagement with local partners.
TOC Policy & OBAG 4
Future
One Bay Area Grant (OBAG) funding cycles (i.e., OBAG 4 and subsequent funding cycles)
will consider funding revisions that prioritize investments in transit station areas that are subject to and compliant with the TOC Policy. To ensure eligibility for OBAG 4 funding and any other discretionary funding that may be linked to TOC Policy consistency, jurisdictions should anticipate demonstrating policy consistency prior to adoption of OBAG 4 (expected in 2026). Consistency with the TOC Policy is voluntary for jurisdictions that want to advance the goals of Plan Bay Area or to be eligible and/or competitive for some MTC discretionary funding.
The process to confirm consistency will continue on a rolling basis until an anticipated deadline in early 2026 corresponding with OBAG 4.
MTC staff are doing proactive outreach to local jurisdiction staff to assist them with assembling the documentation needed to demonstrate consistency, updating their information for all TOC Policy requirements, and assessing where additional work is needed to achieve policy consistency.
TOC Policy Requirements for Transit Extension Funding
In October 2023, MTC adopted an amendment to the TOC Policy, which details TOC Policy standards for fixed-guideway transit extension projects seeking awards or allocations of regional discretionary capital funding. There are different expectations for TOC Policy consistency based on a transit extension project’s delivery stage, as follows:
Project Development/Environmental Review:
Project sponsors, and local jurisdictions as applicable, must provide a letter or resolution acknowledging that future allocation requests to MTC will be subject to the TOC Policy pursuant to later phases.
Project Design and Early Right-of-Way Acquisition:
Jurisdictions must commit in writing to take steps toward achieving consitency by 2026 for the station area(s) seeking funding.
Project Construction:
Jurisdictions do not need to submit a letter of commitment, but they should work with MTC staff to achieve consistency by 2026.
The project sponsor/implementing agency must include an acknowledgement or commitment letter or resolution, as applicable, in its request to MTC for regional discretionary funding.
Project sponsors and local jurisdiction staff can use the following templates for developing the required letter or resolution:
Templates for acknowledgement letter or resolution
Templates for commitment letter or resolution
Advancing Transit in Communities
MTC’s 2022 TOC Policy builds on the
Transit-Oriented Development Policy
, adopted in 2005. The TOC Policy reflects changes in regional transportation and land use trends since 2005, as well as new information from Plan Bay Area.
What are Growth Geographies?
In Plan Bay Area, Growth Geographies are locations used to guide where future growth in housing and jobs would be focused over the next 30 years. These locations are identified for growth either by local cities and counties or because they are located close to transit or access to opportunity. The four types of Growth Geographies in Plan Bay Area are:
Priority Development Areas (PDAs)
: Areas generally near existing job centers or frequent transit that have been identified by towns, cities or counties for housing and job growth
Priority Production Areas (PPAs)
: Locally identified places for job growth in middle-wage industries like manufacturing, logistics or other trades. An area must be zoned for industrial use or have a strong industrial use to be a PPA
Transit-Rich Areas (TRAs): Areas near rail, ferry or frequent bus service that were not already identified as PDAs. Specifically, these are areas where at least 50% of the area is within 1/2 mile of an existing rail station or ferry terminal (with bus or rail service), a bus stop with peak service frequency of 15 minutes or less, or a planned rail station or planned ferry terminal (with bus or rail service)
High-Resource Areas (HRAs): Places identified by the state that have well-resourced schools and access to jobs and open space – among other advantages – that may have historically rejected more housing growth. This designation only includes places that meet a baseline transit service threshold of bus service with peak headways of 30 minutes or better
Related Documents
Transit-Oriented Communities Incentive Program (MTC Resolution No. 4754)
414.65 KB
Transit-Oriented Communities Policy (MTC Resolution No. 4530), Revised October 25, 2023
400.23 KB
MTC Administrative Guidance: Transit-Oriented Communities Policy
1.09 MB
TOC Templates for Acknowledgement Letter and Resolution for Transit Extension Funding
21.32 KB
docx
TOC Templates for Commitment Letter and Resolution for Transit Extension Funding
23.73 KB
docx
Digital Library
Related News
March 9, 2026
El Cerrito Plaza BART Station affordable housing gets BAHFA assist
October 1, 2024
MTC Announces $60 Million in Planning and Capital Grants
Grantee Resources
Resources for jurisdictions that are applying for Transit-Oriented Community (TOC) grants.
See the grantee resources.
Transit-Oriented Communities (TOC) Technical Assistance
Resources on the Technical Assistance Portal to help jurisdiction staff meet the requirements of the TOC Policy.
See technical assistance at abag.ca.gov.
Plan Bay Area 2050+
Plan Bay Area 2050+ is the adopted long-range plan. It charts a course for a Bay Area that is affordable, connected, diverse, healthy and vibrant for all residents through 2050 and beyond.
Visit PlanBayArea.org to learn more.