Innovation in Public Transport Finance: Property Value Capture

Description

The vast majority of funding for public transportation comes from local and national governments. With all levels of governments currently, and for the foreseeable future, under significant fiscal stress, any new transit funding mechanism is to be welcomed. Value capture (VC) is one such mechanism, which involves the identification and capture of a public infrastructure-led increase in property value.This book reviews four major VC mechanisms: joint development projects; special assessment districts (SADs); impact fees; and tax increment financing (TIF); all of which are used to fund transit in the US. Through the study of prominent examples of these VC mechanisms from across the States, it evaluates each mechanism's performance focusing on aspects such as equity, revenue-generating potential, the institutional capacity required to design and implement the mechanisms, stakeholder support for these mechanisms, and the legal and policy environment. It also conducts a comparative assessment of VC mechanisms that would help policy makers and practitioners to choose one, or a combination of VC mechanisms.Although the book focuses on the US, the use of the VC mechanisms and the urgent need for additional revenue to fund public transportation are world-wide concerns. Therefore, one chapter of this book is devoted exclusively to an overview of the VC mechanisms in use internationally. The book concludes that countries, or regions within countries, experiencing significant public-transportation-led increases in property values should seriously consider using VC mechanisms to fund public transportation. Furthermore, they should develop supportive policies and administrative structures, and reconcile competing objectives to ensure rapid development and efficient implementation of VC mechanisms.