Dat e: February 25, 2026
W.I.: 1611
Referred by: Commission
ABS
TRACT
MTC Resolution No. 4754
Thi
s resolution adopts the evaluation framework and guidelines for the Transit-Oriented Communities (TOC) Incentive Program. This program is a key tool for implementing MTC’s TOC Policy (MTC Resolution No. 4530), which helps to advance implementation of Plan Bay Area’s vision for an affordable, connected, diverse, healthy and vibrant Bay Area.
The TOC Policy was adopted in September 2022 to better link the region’s transit investments with land-use planning and local decision-making. The TOC Policy seeks to ensure that areas around transit stations and corridors are well-connected, mixed-use places where residents can live, work, and access daily needs.
The TOC Incentive Program implements the Commission’s direction from the TOC Policy resolution to prioritize investments in transit station areas that are subject to the TOC Policy. It encourages local jurisdictions to achieve consistency with the TOC Policy’s standards related to residential and office densities for new development; housing production, preservation, and protection policies; parking management; and multi-modal station access and circulation.
The resolution includes the following attachments:
Attachment A – TOC Policy Evaluation Framework
Attachment B – TOC Incentive Program Guidelines
Further discussion of this action is contained in the summary sheet to the Commission dated February 25, 2026.
Attachment 1
Dat
e: February 25, 2026
W.I.: 1611
Referred by: Commission
RE: T
ransit-Oriented Communities (TOC) Incentive Program
ME
TROPOLITAN TRANSPORTATION COMMISSION
RESOLUTION NO. 4754
WHE
REAS, the Metropolitan Transportation Commission (MTC) is the regional transportation planning agency for the San Francisco Bay Area pursuant to Government Code Section 66500 et seq.; and
WHE
REAS, California law (California Government Code Section 65080) requires development of a regional Sustainable Communities Strategy to achieve a specified greenhouse gas (GHG) reduction target; and
WHE
REAS, in October 2021, MTC unanimously adopted Plan Bay Area 2050, the region’s Long Range Transportation Plan/Sustainable Communities Strategy, which includes designated Growth Geographies, including Priority Development Areas and Transit-Rich Areas, where future growth in housing and jobs would be focused over the next 30 years, as well as strategies to allow a greater mix of housing densities and types and greater commercial densities in Growth Geographies, both of which are high-impact strategies for achieving the Plan’s GHG reduction target; and
WHE
REAS, in September 2022, MTC adopted the Transit-Oriented Communities (TOC) Policy to incentivize local jurisdictions to plan and zone for higher residential and commercial densities in areas within one half-mile of existing and planned fixed-guideway transit stops and stations to support the region’s transit investments and implement key GHG reduction strategies from Plan Bay Area 2050; and
WHE
REAS, the TOC Policy incentivizes local jurisdictions to adopt policies focused on increasing housing production of all types, particularly affordable housing production, preservation and protection; commercial anti-displacement and stabilization; parking management; and transit station access and circulation to further support regional transit investments and Plan Bay Area 2050 implementation; and
MTC Resolution No. 4754
WHE
REAS, as part of adoption of the TOC Policy in 2022, MTC Resolution No. 4530 stated that “future One Bay Area Grant (OBAG) funding cycles (i.e., OBAG 4 and subsequent funding cycles) will consider funding revisions that prioritize investments in transit station areas that are subject to and [consistent] with the TOC Policy”; and WHE
REAS, in January 2026, MTC set aside regional discretionary funds for the Transit- Oriented Communities Incentive Program through the One Bay Area Grant (OBAG 4) Program (MTC Resolution No. 4740) to incentivize jurisdictions to make progress toward TOC Policy goals and to provide additional funds for eligible project types under OBAG 4; now, therefore, be it
RES
OLVED, that MTC adopts the Transit-Oriented Communities Incentive Program, developed, as detailed in Attachment A, and attached hereto and incorporated herein as though set forth at length.
ME
TROPOLITAN TRANSPORTATION COMMISSION
Sue Noack, Chair
The above resolution was entered into by
the Metropolitan Transportation Commission
at a regular meeting of the Commission held
in San Francisco, California and at other
remote locations on February 25, 2026.
Date: February 25, 2026
W.I.: 1611
Referred by: Commission
Attachment A
Resolution No. 4754
Transit-Oriented Communities (TOC) Policy Evaluation Framework In September 2022, the MTC Commission adopted the Transit-Oriented Communities (TOC) Policy (MTC Resolution No. 4530) to better align regional transit investments with local land- use planning and decision-making. The policy aims to support well-connected, mixed-use communities around transit stations and corridors where residents can live, work, and access daily needs.
The TOC Policy Evaluation Framework is used to assess jurisdiction progress towards consistency with TOC Policy standards. The TOC Policy includes both quantitative and qualitative standards. To evaluate progress across this range of standards, the evaluation framework assesses individual TOC standards within a holistic, jurisdiction-wide context.
Framework at a Glance
The TOC Policy Evaluation Framework provides a weighted system to evaluate progress across all policy areas, offering a transparent method for tracking progress over time. While each component has a different number of standards and requirements, each component is weighted equally at 25 points, for a total possible score of 100 points.
Jurisdictions will receive a certain number of points for meeting each standard. Those will be added together for a total component (density, housing, parking, and station access) score which will be added together to provide a score for the station area. Jurisdictions with multiple station areas will average station area scores for a total jurisdiction score.
Individual
Standard
Score
Overall
Component
Score
Station Area
Score
Jurisdiction
Score
Attachment A
MTC Resolution No. 4754
TOC Policy Evaluation Framework Scoring
Minimum Density – Residential (DU/A) Weight: 8 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 100 75 50 25 8
Substantial progress 85 65 45 20 6
Partial progress 75 55 40 15 4
Minimum Density – Commercial Office (FAR) Weight: 2 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 4.0 3.0 2.0 1.0 2
Partial progress 3.00 2.25 1.50 0.75 1
Maximum Density – Residential (DU/A) Weight: 12 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 150 100 75 35 12
Substantial progress 130 85 65 30 8
Partial progress 115 75 55 25 6
Maximum Density – Commercial Office (FAR) Weight: 3 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 8.0 6.0 4.0 3.0 3
Substantial progress 6.80 5.10 3.40 2.55 2
Partial progress 6.00 4.50 3.00 2.25 1
Full: Meets or exceeds the standards; Substantial: ~85% of required standard; Partial: ~75% of required standard
Production Policies (2) Weight: 8 points Score
Fully consistent: two adopted policies 8
Partial progress: one of the two required policies is adopted 4 Preservation Policies (2) Weight: 8 points Score
Fully consistent: two adopted policies 8
Partial progress: one of the two required policies is adopted 4 Protection Policies (2) Weight: 8 points Score
Fully consistent: two adopted policies 8
Partial progress: one of the two required policies is adopted 4 Commercial Stabilization Policy (1) Weight: 1 point Score Fully consistent: meets or exceeds the standard 1
Minimum Auto – Residential Weight: 2 points Score
2 points if jurisdiction confirms that it prohibits minimums via AB 2097 compliance or code snippet 2 Minimum Auto – Commercial Weight: 2 points Score
2 points if jurisdiction confirms that it prohibits minimums via AB 2097 compliance or code snippet 2 Maximum Auto – Residential (spaces/unit) Weight: 4 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 0.375 0.5 1.0 1.5 4
Partial progress 0.5 1.0 1.5 2.0 2
Any parking maximum ratio 1
Parking
Housing
Density
Attachment A
MTC Resolution No. 4754
Maximum Auto – Commercial (spaces/1,000 sq. ft.) Weight: 4 points Tier 1 Tier 2 Tier 3 Tier 4 Score Fully consistent 0.25 1.6 2.5 4.0 4
Partial progress 1.6 2.5 4.0 5.0 2
Any parking maximum ratio 1
Minimum Bicycle – Residential (spaces/unit) Weight: 3 points Score Meets required minimum of 1 bike space per dwelling unit 3
0.50 to 0.99 bike space per dwelling unit 2
Any minimum bike parking requirement for new residential development 1 Minimum Bicycle – Commercial Office (spaces/5,000 sq. ft) Weight: 3 points Score Meets required minimum of 1 bike space per 5,000 square feet 3
0.50 to 0.99 bike space per 5,000 square feet 2
Any minimum bike parking requirement for new commercial office development 1 Allow Unbundled Parking Weight: 2 points Score 2 points if jurisdiction adopts the policy for both residential and commercial (note: alternatively, jurisdictions in Alameda or Santa Clara counties can confirm AB 1317 compliance as well as adopt the policy for commercial) 2 1 point if jurisdiction adopts the policy for either residential or commercial only (note: applies to jurisdictions in Alameda or Santa Clara counties confirming AB 1317 compliance without adopting the policy for commercial) 1 Allow Shared Parking Weight: 2 points Score 2 points if jurisdiction adopts policy for both residential and commercial or confirms compliance with AB 894* 2 1 point if jurisdiction adopts policy for residential or commercial and does not confirm compliance with AB 894* 1 Parking Management Policy Weight: 3 points Score 3 points if jurisdiction has adopted three applicable policies 3 2 points if jurisdiction has adopted two applicable policies 2 1 point if jurisdiction has adopted one applicable policy 1
Complete Streets Policy Weight: 3 points Score
Jurisdiction has adopted applicable policy 3
Prioritize or Implement Active Transportation Projects Weight: 7 points Score Jurisdiction must have prioritized or implemented active transportation projects 7 Access Gap Analysis Weight: 9 points Score
All modes are addressed (walking, biking, and transit) 9 Only two modes addressed 6
Only one mode addressed 3
Mobility Hub Plan/ Project/ Application Weight: 6 points* Score Jurisdiction has adopted a mobility hub plan/project/application that meets TOC Policy requirements 6 Station Access
Date: February 25, 2026
W.I.: 1611
Referred by: Commission
Attachment B
Resolution No. 4754
ONE BAY AREA GRANT (OBAG) CYCLE 4:
TRANSIT-ORIENTED COMMUNITIES (TOC) INCENTIVE PROGRAM GUIDELINES
Eligibility
Jurisdictions submitting information to MTC will be scored using the TOC Policy Evaluation Framework (Attachment A). The section “Adjustments to the TOC Evaluation Framework” outlines scoring flexibility that may apply. Jurisdictions must achieve a minimum average score of 85 points jurisdiction-wide to be eligible for the OBAG 4 TOC Incentive Program.
Adjustments to the TOC Evaluation Framework
The following adjustments to the TOC Policy Evaluation Framework will be applied for the OBAG 4 funding cycle:
Density Credit for Senate Bill 79 (2025)
SB 79 establishes statewide development standards that apply to housing projects within a ½ mile of qualifying transit stops in four Bay Area counties—Alameda, San Francisco, San Mateo, and Santa Clara. Although there are significant differences between SB 79 and the TOC Policy, SB 79’s development standards are generally aligned with TOC goals related to allowable maximum residential density. As a result, all TOC areas subject to SB 79 are awarded full TOC credit for the allowable maximum residential density standard.
Housing Protection Policies
Jurisdictions are precluded from receiving TOC Policy credit for Housing Protection Policy 2 (No Net Loss and Right of Return) given changes in state law (AB 130, 2025) that achieved the policy outcomes outlined in the TOC Policy.
Attachment B
MTC Resolution No. 4754
Jurisdictions may receive credit for one of the Housing Protection Policies needed to achieve consistency with the TOC Policy through participation in a countywide program where cumulative funding potentially available to TOC jurisdictions meets or exceeds TOC Policy standards.
No protection policy on the TOC Policy’s menu of options is given preference over another — all are evaluated on an equal basis. The protection policy options are intended to reduce displacement and ensure that existing residents benefit from transit-oriented growth; however, implementation of any option is subject to feasibility and alignment with the applicable policies, regulatory framework, and broader community considerations of the local jurisdiction, and should not be construed as expressing support for any particular approach.
Submission Deadline
Jurisdictions interested in participating in the OBAG 4 TOC Incentive Program must submit documentation demonstrating consistency with TOC Policy standards using the TOC Policy Submission Portal by 5:00 p.m. on July 1, 2027. Refer to the TOC Policy Administrative Guidance for more information.
Eligible Uses
TOC Incentive Program funds are subject to the requirements detailed in the One Bay Area Grant (OBAG 4) Project Selection and Programming Policies (MTC Resolution No. 4740, Revised) and can be used for any project type eligible for the OBAG 4 County Program.
Program Structure
As summarized in Table 1, TOC Incentive Program funding is available through a performance- based formula with the following features:
• Formula factors: jurisdictions with more TOC areas and larger populations are eligible for larger awards, reflecting the increased effort, expense, and impact of TOC Policy progress.
• Minimum awards by size: provides a clear incentive to jurisdictions. • Maximum awards by size: helps distribute benefits widely. • Threshold adjustments (if needed): if OBAG 4 TOC Incentive Program funds are insufficient to provide the minimum award amounts in Table 1 for each qualifying Attachment B
MTC Resolution No. 4754
jurisdiction, or if there are excess funds remaining after assigning the maximum award amount in Table 1 for each qualifying jurisdiction, the Commission may consider adjustments to the TOC score threshold or other program elements.
Table 1: TOC Set-Aside Award Structure for Eligible Jurisdictions Size Threshold TOC Jurisdictions in This Category Min
Award
Max
Award
6+ TOCs and/or
400k+
population
Oakland, San Francisco, San Jose $6M $8M
4+ TOCs and/or
200k+
population
Berkeley, Fremont, Livermore, Santa Clara, South San
Francisco $4M $6M
3+ TOCs and/or
100k+
population
Alameda, Alameda County, Antioch, Concord, Contra
Costa County, Daly City, Fairfield, Hayward, Mountain
View, Novato, Palo Alto, Pleasanton, Richmond, San
Leandro, San Mateo, Santa Rosa, Sonoma County,
Sunnyvale, Vallejo
$2M $4M
At least 1 TOC
Belmont, Belvedere, Brisbane, Burlingame, Campbell,
Cloverdale, Colma, Cotati, Dublin, El Cerrito, Emeryville, Gilroy, Healdsburg, Hercules, Lafayette, Larkspur,
Martinez, Menlo Park, Millbrae, Milpitas, Morgan Hill,
Newark, Orinda, Petaluma, Pittsburg, Redwood City,
Rohnert Park, San Bruno, San Carlos, San Rafael, Santa
Clara County, Sausalito, Suisun City, Tiburon, Union
City, Walnut Creek, Windsor
$1M $2M
Note: existing or planned TOC stations may be subject to change. Illustrative award amounts are shown on a per-jurisdiction basis.
Project Selection
Jurisdictions qualifying for the TOC Incentive Program must submit project applications totaling their award amount in the format and by the deadline established by MTC staff to be considered for OBAG 4 funding. Projects selected by the Commission will be added to MTC Resolution No. 4740, Revised, Attachment B-1.