DATE: April 22, 2026
TO: Council Infrastructure and Airport Committee
FROM: Director of Public Works
SUBJECT: Transit Oriented Communities Policy Planning Grant Scoping
RECOMMENDATION
That the Council Infrastructure and Airport Committee (CIAC) review an informational report and provide feedback on the City’s strategy for meeting Metropolitan Transportation Commission’s (MTC) Transit-Oriented Communities (TOC) Policy standards on Parking and Station Access.
SUMMARY
In 2022, MTC adopted the Transit-Oriented Communities Policy to help support and achieve the vision and objectives set by Plan Bay Area 2050, the region’s long-range plan for transportation, housing, the economy, and the environment. The Transit-Oriented Communities Policy sets forth guidelines for land use and transportation policy for areas adjacent to major transit stations, which includes a half-mile buffer around both Hayward and South Hayward BART stations.
To encourage alignment of local land use and transportation decisions with regionwide goals, MTC has set aside $45 million in grant funds as part of One Bay Area Grant (OBAG) 4, their fourth round of the OBAG program, which distributes federal transportation funds every four years through an application process. The TOC policy framework includes four components: Density, Housing, Parking, and Station Access. To be eligible to apply for these funds, cities must meet a minimum average score across all TOCs in their jurisdiction. This report outlines the background of the TOC policy, where Hayward currently scores toward compliance and access to grant funding, what steps are currently underway to improve compliance, and an array of opportunities to meet compliance and access grant funds.
This staff report reviews the City’s existing plans, policies, and municipal code to assess how the City can fulfill the Station Access and Parking standards established in the MTC TOC program. Although many of these recommendations are not directly related to infrastructure, the Committee’s input is important on related policies that may impact our streets. City staff recommend aligning development and transportation policies with regional criteria through the following actions:
Adopt updated density minimums and maximums, and floor-area-ratio (FAR) minimums and maximums in both TOC areas for new residential developments Allow unbundled parking for residential and commercial developments in both TOC areas Allow shared parking for residential and commercial developments in both TOC areas Adopt bicycle parking minimums for new residential and commercial developments citywide City staff request input from CIAC on achieving further alignment with TOC policies through some combination of the following actions:
Adopting some level of parking maximums in TOC area(s) for new residential and/or commercial developments (recommended) Adopting some level of priced parking in TOC area(s)
Funding mobility hub plan development for BART station(s) City staff are interested in understanding CIAC support for staff recommendations for TOC consistency, elements they feel may be challenging or not feasible to pursue currently, and prioritization of feasible actions.
FISCAL IMPACT
This item does not impact the General Fund or Measure C.
All actions are grant-funded through MTC’s TOC Planning and Implementation Projects Grant. MTC is directly contracting with consultants to deliver the proposed services, with City staff overseeing and reviewing the work. The funding is not being provided directly to the City. The only identified fiscal impact would be any revenues and costs associated with pursuing paid parking in TOC areas or mobility hub plans, but only if the Committee decides to prioritize that direction for City staff at this time.
BACKGROUND
In 2022, MTC adopted the Transit-Oriented Communities Policy to help support and achieve the vision and objectives set by Plan Bay Area 2050, the region’s long-range plan for transportation, housing, the economy, and the environment. This builds on the Transit-Oriented Development (TOD) Policy, adopted in 2005. The TOC policy seeks to achieve four core goals:
Increasing the overall housing supply in part by increasing the density for new residential projects, with a priority of siting affordable housing in transit-rich areas.
In areas near regional transit hubs, increasing density for businesses and commercial development.
Prioritizing bus transit, active transportation, and shared mobility (such as bike share and car share) within and to/from transit-rich areas, particularly to Equity Priority Communities (EPCs) located more than one half mile from transit stops or stations.
Supporting and building partnerships to create equitable transit-oriented communities within the San Francisco Bay Area.
These goals are broadly aligned with those set forth in the City’s General Plan – Housing and Mobility Elements, and will help Hayward meet community needs around affordable options for housing and transportation as the city grows. The City of Hayward has two TOCs: a half-mile buffer around Hayward BART station (referred to in this memo as Downtown Hayward) and South Hayward BART station, as seen in Figure 1. The TOC policy establishes different standards for four different tiers of station areas, based on their geography and characteristics of the public transit that serve them. Both of Hayward’s TOCs are classified within the second highest tier, which holds them to a higher standard of density and parking than less dense or traveled corridors.
Figure 1. Map of Both Tier 2 TOC Policy Areas in Hayward To encourage alignment of local land use and transportation decisions with regionwide goals, MTC has set aside $45 million in grant funds as part of OBAG 4, their fourth round of the OBAG program which distributes federal transportation funds every four years through an application process. The City received $1.75M in OBAG 2 grant funds nine years ago for projects on Main St and Winton Ave, and did not earn grant funding in OBAG 3. Having access to TOC set-asides in addition to OBAG 4 grant funding would be transformational for Hayward. The TOC policy framework includes four components: Density, Housing, Parking, and Station access. To be eligible to apply for these funds, cities must meet an average score across all TOCs in their jurisdiction of 85 out of 100 points. An overview of the scoring is shown in Figure 2. City staff estimate Hayward would currently receive an average score across the two TOCs of about 50 points, as shown in Table 1.
Figure 2. Points and Process for Evaluating TOC Policy Consistency Table 1. Estimated Scoring Evaluation by TOC Policy Category Evaluation Category
Estimated Score
Density
4/25
Housing
25/25
Parking
5/25
Station Access
16/25
TOTAL
50/100
In 2025, the City of Hayward applied for and was awarded grant funds from MTC to help the City meet compliance. Hayward received a Station Access and Circulation Grant and a Parking Management Grant, which the City accepted on May 6, 2025. In accepting that grant, City Council adopted a Resolution to implement and work towards compliance with MTC’s TOC policies, which was a condition of the grant award.
This staff report sets forth options for City staff to pursue compliance in both the station access and parking categories, including an assumption that Hayward will update its density and FAR for new development in the TOC areas.
DISCUSSION
This section will discuss the recommendations for the two categories most relevant to transportation in Hayward: Parking and Station Access.
TOC Parking Standards
The parking component of the TOC policy includes six parking standards, each of which represent a range of potential points towards achieving overall TOC policy consistency. Some aspects of the six TOC parking standards vary by station area tier, which reflects the level of transit service available at each station area, as shown in Table 2. In Hayward, the following parking standards apply to the Hayward BART station area and the South Hayward BART station area, both of which are classified as Tier 2 stations:
Remove minimum parking requirements for new developments Establish maximum parking requirements for new developments Tier 2 residential parking maximums: ≤ 0.5 spaces per residential unit Tier 2 commercial parking maximums: ≤ 1.6 spaces per 1,000 square feet Establish bicycle parking requirements for new developments 1 secure bicycle parking space per residential unit
1 secure bicycle parking space per 5,000 square feet
Allow unbundled parking
Allow shared parking between different land uses
Adopt one or more complementary parking management policies:
Transportation Demand Management (TDM) policy for new development Curb management strategy
Parking benefit district
Demand-responsive pricing
Priced parking
Table 2. Parking Available Point Values
Parking
Points Available
No Minimum Vehicular Parking Requirement – Residential
2 No Minimum Vehicular Parking Requirement – Commercial 2 Maximum Vehicular Parking Requirement – Residential
4 Maximum Vehicular Parking Requirement – Commercial
4 Minimum Bicycle Parking Requirement – Residential
3 Minimum Bicycle Parking Requirement – Commercial
3 Allow Unbundled Parking
2 Allow Shared Parking
2 Parking Management Policies
3 TOTAL
25 Based on the review of existing plans and policies against the MTC TOC Policy Requirements, the Hayward TOC areas are not fully consistent. The City should receive full points for removing parking minimums next to transit hubs since AB 2097. In the other categories, Hayward has made some progress towards TOC consistency, including elements from our Mission Boulevard Code (2020), Downtown Specific Plan (2019), and Downtown Parking Management Plan (2018), but still needs to make substantial efforts to meet consistency. A summary of City policies and steps needed is shown in Table 3. The City is currently taking steps towards consistency with the Parking Management Policies by working towards a draft TDM policy for new development and by ensuring our existing curb management strategies are updated.
Table 3. TOC Parking Consistency Summary
TOC Parking Standard
Status
Notes and Opportunities for Consistency
Parking Minimums
Consistent
Elimination of minimums within a half mile of BART stations has been formalized in Hayward’s municipal code.
Parking Maximums
Some progress
Maximum parking requirements have been established in some parts of Hayward (sustainable mixed use, Mission Boulevard).
Full TOC consistency will require:
Extending minimums to station areas
Establishing minimums for non-residential uses
Reducing minimums to align with TOC standards
Bicycle Parking Requirements
Some progress
Minimum bicycle parking requirements have been established in some parts of Hayward (Downtown Specific Plan, Mission Boulevard Code).
Full TOC consistency will require:
Extending requirements to station areas
Increasing requirements to align with TOC standards
Unbundled Parking
Some progress
Hayward’s municipal code requires that parking is unbundled for residential market-rate housing developments of 16+ units.
Full TOC consistency will require:
Allowing other development types to unbundle parking in TOC areas Shared Parking
Some progress
Shared parking arrangements are allowed under certain conditions (specific uses that can share, limits on how much is shared).
Full TOC consistency will require:
Reducing constraints/conditions for shared parking in station areas Parking Management Policies
Some progress
Parking management strategies are identified in key plans and policies as priorities, but are not yet implemented in TOC areas. The 2018 Downtown Parking Management Plan may satisfy some curbside management aspects.
TOC consistency will require:
Selecting and implementing up to three of the five parking management policy options for station area implementation Note: earning a third point will require some form of priced parking In summary, Hayward is on track to get full points in one of the categories, and has identified several categories that could be opportunities to gain points.
TOC Station Access Standards
The Transit Station Access and Circulation element of the TOC Policy requirements, each jurisdiction is required to comply with four requirements, which are further detailed in MTC’s TOC Policy Administrative Guidance. The four requirements are as follows:
Adopt policies/guidelines that comply with Complete Streets Policy Prioritize implementation of Active Transportation Plan and/or relevant Community Based Transportation Plans within TOC station area Complete an access gap analysis and accompanying capital and/or service improvement program Identify opportunities for Mobility Hub planning and implementation Table 4. Station Access Available Point Values
Station Access
Points Available
Complete Streets Policy
3 Active Transportation Network Projects
7 Station Access Gap Analysis
9 Mobility Hub Plan
6 TOTAL
25 Based on the review of existing plans and policies against the MTC TOC Policy Requirements, the Hayward TOC areas are not fully consistent. Hayward meets the citywide Complete Streets Policy and All Ages and Abilities (AAA) Active Transportation Project Prioritization/Implementation criteria. The City is also currently in the process of conducting a Station Access Gap Analyses for both Downtown Hayward and South Hayward TOCs.
There are opportunities to achieve consistency by developing a Mobility Hub concept for both BART stations. Mobility hubs are places where people can seamlessly transfer between transportation modes, like public transit, bike share, car share, and others. Generally built around frequent and high-capacity transit, mobility hubs offer a safe, comfortable, convenient, and accessible space for people in transition and the service providers that make that independent mobility possible. However, because BART owns most of the adjacent property at both TOCs, there is little input the City can meaningfully develop in a Mobility Hub Plan. Additionally, with TOD plans at Hayward BART station (which will incorporate mobility hub concepts) and potential closure of the South Hayward BART station due to BART’s budgetary issues, planning for a mobility hub may not be appropriate at this time. Hayward may receive full credit in that category, as there are substantial steps the City is taking with BART and AC Transit to coordinate nearby routes, facility needs, and gap closures for both transit and first- and last-mile active travel. However, City staff is not confident in that estimate of full credit in the category.
In summary, Hayward is on track to get full points for three of the four categories, and closing the small gap in estimated full, but potentially partial points, with two Mobility Hub Plans is not advised at this time.
Next Steps Toward Consistency
The next steps are to identify those areas where City staff believe efforts should be made to meet TOC consistency and gain access to additional grant funding. Some efforts are “in progress,” some are good “fit” points where staff and political effort are expected to be low, and then closing the small gap left are “goal” points, which are planning policies that would require additional actions and efforts from Development and eventually City Council. These identified priorities are shown in Table 5. The green/pink split for Parking Management Strategies notes the current progress towards two points with TDM and curbside management, while also identifying that a third point would have to come from priced parking. The pink for Mobility Hub Plan recognizes that the City might get full points because of its active, ongoing work with transit agencies and its plans for addressing transit access gaps, but to definitively guarantee those points would require additional mobility hub plans or designs.
Table 5. Next Steps for TOC Consistency
Station Access
Downtown
South
Consistent Complete Streets Policy
3/3
3/3
Active Transportation Network Projects
7/7
7/7
Station Access Gap Analysis
9/9
9/9
Mobility Hub Plan
6*/6
6*/6
TOTAL
25/25
25/25
Parking
Downtown TOC
South TOC
Eliminate Parking Minimums
4/4
4/4
Adopt Parking Maximums
0/8
0/8
Adopt Bike Parking Minimums
6/6
6/6
Allow Unbundled Parking
2/2
2/2
Allow Shared Parking
2/2
2/2
Adopt Parking Management Strategies
2/3
2/3
TOTAL
16/25
16/25
(assuming Density reaches -5 points) AGGREGATE TOTAL 86/100
86/100
[ ] = In Progress [ ] = Fit Points [ ] = Goal Points AGGREGATE AVERAGE 86/100
*City staff are not confident in this estimate
While these easier steps alone may meet the point threshold, City staff are not confident in the Mobility Hub point estimate provided, and recommend some level of action around adopting parking maximums in the TOC buffered areas for at least some partial number of points. For example, the City would receive all four points for adopting a residential parking maximum of 0.5 spaces per unit in the TOC area. However, the City could adopt a maximum of 1 space per unit for two points, or receive one point for having any maximum above that. The City can earn a small number of points by implementing priced parking or developing two Mobility Hub Plans, but the effort for such small gains in grant readiness may be significant, and is not advised at this time. Any and all of the policies laid forth by MTC are aligned with the future Hayward is striving towards in our plans and goals, but these are the nuanced considerations Transportation and Development Divisions are approaching as they work towards TOC consistency and grant readiness for the City.
ECONOMIC IMPACT
These actions may result in small costs and large savings associated with new residential and commercial construction. Bicycle parking spaces are generally inexpensive to provide, and vehicular parking spaces can be a significant driver of cost for new developments. By reducing the footprint and costs of vehicular parking through shared parking and unbundled parking, developers have significant savings, which can be passed along to the community as lower rents or purchase prices. However, there is potential that overly strict parking maximums might make Hayward less attractive for new development in the short term if developers do not see a market for commercial and housing units with fewer parking spaces. Their ability to sell to the existing market while fulfilling local and regional transportation policies is a balance that has to be considered when adopting policy.
STRATEGIC ROADMAP
The recommended actions would promote the following three priorities (2, 3, and 4) from the Strategic Roadmap:
Priority 2: Preserve, Protect & Produce Housing for All By reducing the costs associated with parking construction by sharing parking, the cost of building housing can be decreased, promoting housing production and affordability Unbundled parking reduces costs for households near transit by not requiring them to purchase parking spaces.
Priority 3: Confront Climate Crisis & Champion Environmental Justice Secure parking makes bicycling more accessible, reducing greenhouse gases and dependency on fossil fuels.
Priority 4: Invest in Infrastructure
Secure bicycle parking is multi-modal transportation infrastructure.
In the potential actions listed, parking maximums would further advance housing and climate goals (Priority 2 and 3). Appropriately located and priced parking also has the potential to promote Priority 3, by encouraging taking transit or active modes to destinations, but could also promote Priority 4: Grow the Economy, by helping create thriving commercial corridors where curbside management improves turnover, providing dependable access to businesses in these denser commercial areas of the City. Depending on where revenue gets directed from priced parking, investing some portion of it back in the streets it was collected could also improve Priority 1: Support Safe and Clean Neighborhoods, by creating a funding stream for additional security, landscaping, litter collection, and other needs as determined by a business district or other overlay.
SUSTAINABILITY FEATURES
Reducing requirements for vehicular parking and increasing bicycle parking in new developments helps to reduce air pollution and greenhouse gas emissions from the transportation system, advancing climate and sustainability goals.
The City may further prioritize sustainable modes of transportation like walking, biking, and transit by improving curbside management through priced parking.
PUBLIC CONTACT
There has not yet been public contact specifically in reference to this item. City staff will be starting public outreach after first engaging CIAC, and will then conduct outreach with the public in these TOCs on station access gap information and desired improvements in the City right-of-way.
NEXT STEPS
Once the CIAC provides input, City staff can work with the grant-funded consultant team to develop draft language for updates to codes, overlays, and policies to meet consistency before bringing final writeups to the Planning Commission and eventually City Council for approval. To participate in the OBAG 4 TOC Incentive Program, City staff must submit our documentation demonstrating TOC consistency by July 1, 2027.
Prepared by: George Foster, Senior Transportation Planner, Public Works & Utilities Department
Jeremy Lochiro, Planning Manager,
Development Services Department
Recommended by: Alex Ameri, Director of Public Works & Utilities Approved by:
_____________________________
Jennifer Ott, City Manager
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