City Council is prepared to fund the project locally if it cannot obtain state or federal funding for the $80 million project.
The plan is a big step up for the Regional Transit Authority, which was devastated by Hurricane Katrina but has recently stabilized its finances.
VIA Metropolitan Transit hopes to announce its first streetcar system by the end of the year, implementing further transit lines through 2035.
City and county officials hope to mimic Portland's success and break ground within two to three years, although they admit there may be obstacles.
Following the completion of Portland's streetcar system in 2001 and its subsequent success, cities nationwide are considering streetcar lines of their own.
The Portland streetcar system has vastly increased pedestrian traffic, the number of locally-owned stores, and property values.
Commentary
David Crossley
Is the City of Houston shrinking?
Richard Florida
The limits of density
Kaid Benfield
New housing forecast mostly good for walkable communities
More Commentary