A new agreement between two Maryland agencies will support construction of denser mixed-use projects near transit stations, including more affordable housing, and promote the state’s climate goals.
The Maryland Department of Transportation (MDOT) and Maryland Department of Housing and Community Development (DHCD) on Monday announced the signing of a memorandum of understanding to formalize collaboration between their agencies on transit-oriented development.
“This partnership is a win-win for Maryland families as transit-oriented development will help lower the costs of housing while increasing access and ridership to transit,” MDOT Secretary Paul J. Wiedefeld said in a statement.
Maryland has a housing shortage of more than 96,000 units, but officials hope the new agreement will help close the gap by adding mixed-use, mixed-income developments within a half mile of transit stations.
“We know that progress doesn’t come without partnership,” DHCD Secretary Jake Day said in a statement. “Through this agreement, we’re making firm our commitment to collaboration with our partners at the Maryland Department of Transportation in addressing the housing shortage and fostering economic vitality for communities across the state.”
MDOT owns more than 300 acres of property directly adjacent to its transit stations, which it plans to work with DHCD to develop, said MDOT Assistant Secretary Joe McAndrew.
While the two agencies have a history of collaboration, the MOU will make it easier for them to share resources, McAndrew said.
For example, Low-Income Housing Tax Credit subsidies flow from the federal government to Maryland via DHCD, which will aid the development of affordable, transit-accessible housing.
“DHCD has years of experience developing and partnering with developers; … that’s not necessarily our expertise, so we have an opportunity to collaborate and leverage those years of wisdom, shall we say, in a way that will help us accelerate our curve of learning and delivery for the state, which is ultimately our goal,” he said.
Long commute times and high housing costs are two of the top reasons Marylanders cite in their decision to leave the state, said Scott Gottbreht, DHCD’s Assistant Secretary of Policy, Strategy, and Research. And since the collapse of the Francis Scott Key Bridge earlier this year, commute times have gotten even longer for many residents.
“Maryland’s economic growth puzzle will require the close cooperation of DHCD and MDOT in order to figure it out,” Gottbreht said. “If we want Maryland growing again, we need improved strategies and effectiveness of both the transit and housing space systems, and this MOU will make that possible.”
The Moore-Miller administration’s 2024 State Plan highlighted that Maryland Transit Administration ridership was still down compared to pre-pandemic levels. That decline is consistent with national trends.
McAndrew said Maryland is at an important crossroads: the state can continue current land use development patterns and maintain ridership levels where they are today, or invest in denser developments within a walkable distance of transit stations and watch ridership rise.
With the latter path, he said, “you also see thriving communities … where you’ve got groceries and schools and attainable, affordable houses.”
Transportation is the largest greenhouse gas emission sector for Maryland, comprising 35% of the state’s greenhouse gas emissions. Although the state has been building out infrastructure to support the transition from gas-powered to electric vehicles, McAndrew said EVs are only one part of the pollution solution.
“We also need to create options for people to have the freedom to travel outside of a vehicle, if they so choose, whether it be biking or walking or transit,” he said. “Fortunately, for the state of Maryland, we have great transit assets, whether it be the WMATA system, Baltimore Metro, light rail, bus network, and the MARC network, as well as our locally operated transit services. The question is: how can we go ahead and encourage and send folks to take those great assets, take those trip options?”
By developing near transit stations, Maryland will be making it easier for residents to use more energy-efficient public transportation to commute to and from work, home, and recreational activities, McAndrew said.
Denser housing complexes are also more energy-efficient, Gottbreht said, because they have fewer walls and have more energy-efficient technologies as new builds.
Building more densely will also cut down on housing-related emissions, Gottbreht said.
“This is good for climate, it’s good for equity, it’s good for affordability,” said McAndrew. “It’s also good for fiscal prudence, for making sure that we’re maximizing the return on our investments. It’s also good for the tax base.”
