New bill ties housing costs to transportation

THAT Act

Jon Boyd, Jul 26, 10.

Congressman Earl Blumenauer, from Oregon’s Third District, has introduced the Transportation and Housing Affordability Act (THAT Act), intended to increase transparency in total housing costs. The transportation costs associated with a household are associated with its location. These costs vary by region, and they also vary greatly by location within a region.

Such a law would have an even greater impact on consumers in the Houston region, whose transportation costs rank among the highest in the nation. The average household in Houston spends more than 25% of its income on transportation, but these costs are substantially lower for those who have live near transit and live in walkable neighborhoods.

Congressman Blumenauer describes the features of his bill on his web site:

The THAT Act requires the Secretary of Housing and Urban Development (HUD) to work with the Department of Transportation and other stakeholders to develop a transportation affordability index that measures the transportation costs associated with the location of a home. The bill requires HUD to take into consideration a number of factors that determine transportation costs, including the location and frequency of transit service, the average vehicle miles travelled in the area, and the availability of services such as grocery stores, bike lanes, community centers, and schools.

HUD will be required to share this information with the general public, realtors, regional and local housing and planning agencies, states, and entities that engage in transportation demand management programs. The bill also requires HUD, where feasible, to incorporate transportation costs into its housing programs and work with other federal agencies, states, and local governments to incorporate transportation costs into their housing programs.

The information made available by this legislation will ensure transparency in housing and transportation costs for consumers, housing providers, local and regional planning agencies, and other stakeholders. It will also enable HUD, where appropriate, to incorporate transportation costs into its affordability measures and standards.

The Illinois Legislature has already passed a similar law in March, which still awaits the Governor’s signature.