Title
Apply for Federal Transit Administration Pilot Program for Transit-Oriented Development Planning Grant Opportunity for Federal Fiscal Year 2023-24 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-51267)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept and, if awarded, enter into an agreement for disbursement of Federal funding from the Federal Transit Administration (FTA) through the Federal Fiscal Year (FFY) 2023-24 Pilot Program for Transit-Oriented Development (TOD) Planning grant opportunity. If awarded, the funding will be used to conduct a comprehensive planning study of the West Phoenix light rail corridor. Funding for this grant opportunity is available through the Federal Bipartisan Infrastructure Law. The total grant funds applied for do not exceed $1.7 million, and the City’s local match would not exceed $200,000 and in-kind staff time of $100,000. Further authorize the City Treasurer to accept and the City Controller to disburse all funds related to this ordinance.
Report
Summary
On May 23, 2024, the FTA issued a Notice of Funding Opportunity (NOFO) for the Pilot Program for Transit-Oriented Development Planning. These grants are designed to help organizations plan for transportation projects that connect communities and improve access to transit and affordable housing. The submittal deadline for this grant was August 2, 2024. Due to the time of the NOFO and quick submittal deadline, staff had to identify a competitive project, funding source, and preliminary scope of work. This did not allow sufficient time to adhere to the Council process prior to submittal, therefore, the Public Transit Department is requesting retroactive authorization.
The Public Transit Department seeks to receive grant funding from the FFY 2023-24 Pilot Program for TOD Planning. The West Phoenix Alternative Analysis (AA) was determined to be the most competitive project for this grant opportunity. The West Phoenix AA identified a mode and route for extending the light rail system westward serving the Maryvale area, which the Phoenix City Council has affirmed. The corridor, being in its very early planning phases, allows the City ample time to align the community's needs with the light rail design and station locations, and by developing a TOD plan that captures the community’s vision through robust and equitable engagement. Beyond articulating a strong vision, the project will bridge traditional policy divides that have hindered transit-oriented land use, affordable housing, and active transportation planning for decades. By embedding supportive policies for pedestrian and bicycle connectivity, reducing regulatory barriers to affordable housing, and encouraging TOD, the plan envisions holistic strategies for efficient and equitable community benefit. This comprehensive approach will improve the quality of life in West Phoenix and support sustainable growth.
Financial Impact
The estimated total cost for the project is approximately $1.8 million. The maximum Federal participation rate is 80 percent, with a minimum local match of 20 percent of the eligible project cost, unless the project places additional focus on affordable housing. Projects with a substantial focus on affordable housing are eligible to receive up to 100 percent federal financial support. This application included a significant housing component which makes the City of Phoenix eligible for consideration for full FTA funding. If full funding is awarded, the Federal match would not exceed $1.7 million (94.4 percent) and the City’s costs would be approximately $100,000 (5.6 percent) for in-kind contributions. If full funding is not awarded, the Federal match would not exceed $1.5 million (83.3 percent) and the City’s costs would be approximately $200,000 (11.1 percent) in local funds, and $100,000 (5.6 percent) for in-kind contributions.
Local match is available from the following departments:
- Public Transit Department - $150,000; and
- Street Transportation Department - $50,000.
In-kind local match is available from the following departments:
- Planning and Development Department - $75,000; and
- Housing Department - $25,000.
Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from the FTA through the FFY 2023-24 Pilot Program for TOD Planning grant opportunity.
Concurrence/Previous Council Action
This item was presented to the Citizens Transportation Commission on August 22, 2024, and was approved by a vote of 8-0.
Location
West Phoenix Light Rail Extension Area (7th to 83rd avenues, Campbell Avenue to Osborn Road; and a small subset between 71st and 75th avenues from Osborn Road to Encanto Boulevard).
Council Districts: 4, 5 and 7
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua, Alan Stephenson and Gina Montes, and the Public Transit, Planning and Development and Housing departments.