FTA grantees may use FTA financial assistance for joint development activities that incorporate private investment or enhance economic development. Such projects may include transferring land for nearby real estate development; preparing land for development; providing enhanced access; and developing on-site community services such as dependent care, health care, public safety, or commercial conveniences.

The Pilot Program for Transit-Oriented Development (TOD) Planning created under MAP-21 legislation is associated with a new fixed guideway or core capacity improvement project, as defined in 49 U.S.C. (Fixed Guideway Capital Investment Grants Program). MAP-21 authorizes FTA to make grants for comprehensive planning that seeks to:

• Enhance economic development, ridership, and other goals established during the project development and engineering processes;
• Facilitate multimodal connectivity and accessibility;
• Increase access to transit hubs for pedestrian and bicycle traffic;
• Enable mixed-use development;
• Identify infrastructure needs associated with the eligible project; and
• Include private-sector participation.

Moreover, previous federal transit law (49 U.S.C. §5301 et. seq.) references transit-oriented development in select places:

• SAFETEA-LU created a Center for Transit-Oriented Development to develop standards and definitions for transit-oriented development adjacent to public transportation facilities; system planning guidance, performance criteria, and modeling techniques for metropolitan planning agencies and public transportation agencies to maximize ridership through land use planning and adjacent development; and research support and technical assistance to public transportation agencies, metropolitan planning agencies, and other persons regarding transit-oriented development;
• Section 1117 of SAFETEA-LU the Transportation, Community and System Preservation Program made transit-oriented development plans and capital projects eligible for federal funding, and gave priority consideration to state and local preservation of development plans, including transit-oriented development plans.