The National Academies

TCRP J-11/Task 22 [Final]

Value-Capture Financing for Public Transportation Projects

  Project Data
Funds: $75,000
Research Agency: IMG Advisory LLC (dba IMG Rebel)
Principal Investigator: Sasha Page
Effective Date: 10/29/2015
Completion Date: 8/1/2016


As demand for public transportation continues to increase and traditional methods of funding are facing over-subscription and stagnation, transit agencies and their communities are exploring and pursuing innovative approaches such as value capture to finance public transportation investments. Value capture is a type of public financing that recovers some or all of the value (i.e., the increase in adjacent land values) that public infrastructure generates for private landowners. This unearned value may be "captured" by converting it into public revenue. In short, value capture is an innovative funding option that can allow some portion of the increase in adjacent land value to be dedicated to developing and operating public transportation because the investment in transit services is linked to enhanced private land values.

Among others, four common types of value-capture strategies include assessment districts, tax-increment financing (TIFs), joint development, and development impact fees. These strategies have been used to provide funding for public transportation operations, as well as a funding stream to finance infrastructure investments and ridership-enhancing neighborhood improvements.


The objective of this research is to identify practical approaches to successfully implementing value capture for public transportation and overcome the impediments associated with these funding mechanisms. The research should focus on the perspectives of entities such as financial advisors, bond lawyers, debt issuers, municipal underwriters and brokers, debt and equity fund managers, and land use developers that participate in monetizing the increases in value of real estate that are linked to transit investments. The research should also address the perspectives of policymakers and regulators associated with transportation infrastructure at the local, state, and national levels, including entities responsible for TIFIA loans and FTA major capital investment grants.

STATUS: The research has been completed and the final report has been published as TCRP Research Report 190: Guide to Value Capture Financing for Public Transportation Projects.

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