Transit-Oriented Development (TOD) Capital Grant and Revolving Loan Fund

The Transit-Oriented Development Capital Grant and Revolving Loan Fund is a statewide competitive program administered by the Maryland Department of Transportation. It was established under the Equitable and Inclusive TOD Enhancement Act of 2023 to support equitable, inclusive, and sustainable development around transit stations. The program’s purpose is to advance the implementation of transit-oriented development projects that align with Maryland’s goals for housing affordability, environmental sustainability, and economic growth. Through a mix of reimbursement grants and low-interest loans, the Fund enables local jurisdictions and their development partners to plan, design, and build infrastructure that strengthens access to transit and promotes mixed-use, walkable communities. The Fund offers three types of financial assistance: Design Plans, Public Infrastructure Improvements, and Gap Financing. Design Plan grants assist local jurisdictions in developing conceptual or engineering designs for TOD projects, while Public Infrastructure Improvement grants support the construction or installation of public assets such as sidewalks, plazas, parking structures, or utility upgrades. Gap Financing loans are available to private or nonprofit development partners working with a local jurisdiction to address funding shortfalls in catalytic projects that would otherwise be infeasible. All projects must fall within a State-designated TOD area and demonstrate clear alignment with the site’s TOD Designation Plan, which must address land use, housing, transportation, and economic development strategies. The FY26 round makes $3.75 million available in combined grant and loan funding. Local jurisdictions may request up to $250,000 for Design Plan grants or up to $750,000 for non-revenue-generating Public Infrastructure Improvement grants, each requiring a 10 percent local match. Revenue-generating infrastructure projects and Gap Financing proposals are eligible for loans of up to $1 million at Treasury interest rates, with repayment terms of three to five years. Applicants must demonstrate project readiness, matching contributions where required, and financial capacity to complete and sustain the proposed project. Prior grantees must have completed and closed out any prior TOD grant agreements before applying for new funding. Applications will be accepted from October 6, 2025, through November 7, 2025, at 5 p.m. Eastern Time. Eligible applicants include Maryland local governments and, for Gap Financing, private or nonprofit entities partnering with a local jurisdiction. All applications must be submitted electronically through the Maryland OneStop portal, and supporting materials such as letters of support, zoning verification, and, for loan applicants, financial statements and credit documentation are required. Applicants are encouraged to attend one of two informational webinars offered during the open period. Proposals are evaluated through a two-step review process. MDOT first verifies eligibility, completeness, and creditworthiness (for loan applicants). Qualified applications are then scored by an interagency review team using a rubric that measures project readiness, financial planning, and advancement of equity and inclusion goals. These include enhancing transit access for low-income and minority residents, improving connectivity in areas with affordable housing and job opportunities, and promoting redevelopment around underutilized transit stations. Award notifications are expected in January 2026, with grant and loan agreements finalized between January and June 2026. Funded projects are generally expected to be completed within two years, with quarterly reimbursement submissions and reporting. Post-award, MDOT requires quarterly status and spend plan reports throughout the project term. Grantees must submit final deliverables for any design work funded, and MDOT retains rights to use such materials. The Fund is expected to continue offering annual rounds, supporting Maryland’s long-term strategy to strengthen its network of transit-oriented communities. Program staff can be contacted at TODprogram@mdot.maryland.gov for questions and technical assistance.

Submit a complete and well-documented project plan showing TOD alignment and readiness; ensure financial documentation and local match are clearly demonstrated.