Transit-Oriented Development (TOD) Implementation Program

2026 TOD Guidelines

The California Department of Housing and Community Development (HCD), in partnership with the Governor’s Office of Land Use and Climate Innovation (LCI), is pleased to release the 2026 TOD Guidelines for the Transit-Oriented Development (TOD) Implementation Program. As authorized by Chapter 22, Statutes of 2025 (AB 130), the Guidelines establish a framework to support Vehicle Miles Traveled (VMT) efficient affordable housing and related infrastructure, while providing an additional tool for lead agencies to address significant transportation impacts under the California Environmental Quality Act (CEQA).

Transit-Oriented Development Fund (TDIF)

AB 130 (2025) authorized a statewide VMT Mitigation Bank. CEQA Lead Agencies will have the option to mitigate VMT impacts under CEQA by contributing resources to the Transit-Oriented Development Implementation Fund (TDIF). The resources contributed to the TDIF will provide funding for the TOD program.

This VMT mitigation bank will allow Lead Agencies (under CEQA) to mitigate VMT impacts by contributing to the TDIF, which will be administered by HCD. HCD will aggregate and allocate those funds to support the development of location-efficient affordable housing as described in these Guidelines.

The TDIF will be ready to begin accepting contributions on July 1, 2026. During this initial phase, the TDIF will only accept contributions from applicants who propose publicly funded Impacting Projects as described in the June 30, 2026 Administrative Memo.

Guidance for TDIF contributions (e.g., application forms, intake processes) will be available by mid-July on the TOD webpage.

Updates to HCD’s legacy TOD Program

To ensure consistency with AB 130, the TOD guidelines have been updated, including a new emphasis on efficiency of project locations, housing affordability, improved vehicle miles traveled efficiency, and project readiness. Previous applicants will find many of the traditional TOD threshold and eligibility requirements.

Public Comment Process

We appreciate comments submitted during the 30‑day public comment period. All feedback was reviewed and taken into consideration in developing the Guidelines. While not every suggestion is reflected in the updated document, each comment contributed to our continued analysis and stakeholder engagement.

HCD and LCI remain committed to engaging with stakeholders during implementation of the Mitigation Program. We will continue to welcome feedback on the Guidelines and appreciate your partnership in advancing housing solutions that support California’s climate and transportation goals.

For more information, visit our TOD webpage. Additional Program information may be found at LCI Guidance.