If you’re developing near a bus or rail line in LA City and Pasadena, you may qualify for Transit-Oriented Communities (TOC) incentives.
We help developers to assess whether a site qualifies, structure the required affordability, and move the project through the approval process efficiently.
Transit-Oriented Communities (TOCs) are housing developments built close to Major Transit Stops, such as bus intersections or rail stations. This way, people can rely less on cars, and cities can reduce traffic and emissions.
LA remains one of the country’s most congested cities. At the same time, the massive housing backlog is causing sky-high rents and home prices. Building more TOC projects near transit is a practical way to increase housing supply, support affordable units, and reduce car dependency, which helps address both congestion and housing issues.
In Pasadena traffic is generally less severe than LA, except during peak periods, but its location along the Metro L Line (formerly A Line) makes transit-adjacent development important. TOD projects encourage higher-density housing near transit, making the city more walkable and providing housing options close to public transportation.
The Los Angeles TOC Incentive Program encourages developers to include a required percentage of affordable housing. In return, projects may receive relief from certain zoning restrictions, allowing for:
Increased density (higher FAR or more units per lot)
Reduced or zero parking requirements
Greater building height
Reduced open space requirements
In Los Angeles, incentives are determined by a Tier system, which is based on the shortest distance from your project to a qualifying Major Transit Stop.
Here’s the Tier system at a glance:
Major Transit Stop (and Intersections) | Distance to Major Transit Stop | |||
Tier 1 | Tier 2 | Tier 3 | Tier 4 | |
Regular Bus + Regular Bus | 750–2640 ft | <750 ft | ||
Regular Bus + Rapid Bus | 1500–2640 ft | 750–1499 ft | <750 ft | |
Rapid Bus + Rapid Bus | 1500–2640 ft | <1500 ft | ||
Metrolink Rail Station | 1500–2640 ft | 750–1499 ft | <750 ft | |
Metro Rail Station | ≤2640 ft | <750 ft (if it intersects with a Rapid Bus or another rail line) | ||
Pasadena does not have a formal “TOC Program” like Los Angeles, but it does actively promote transit‑oriented development (TOD). The city uses TOD zoning standards and incentives to encourage higher-density, mixed-use housing and commercial projects near major transit stops, such as Metro L Line stations. These standards allow for increased development flexibility, including higher densities and reduced parking requirements, to support walkable, transit-accessible communities. Pasadena’s approach is embedded in its housing policies and specific plans, which aim to expand housing options and improve urban connectivity, even though it does not use the same TOC name or framework as Los Angeles.
Los Angeles: In Los Angeles, a project qualifies for the Transit Oriented Communities (TOC) Incentive Program if it is a residential or mixed‑use development located within a designated TOC Zone, typically within a half‑mile of a Metro rail station or a high-frequency bus stop. Projects must include a minimum percentage of on-site affordable housing, which determines the level of incentives they can receive, such as increased density, reduced parking requirements, and height bonuses. TOC Zones are concentrated around major transit corridors and stations across the city, ensuring that new development supports public transit use and walkable communities.
Pasadena: Pasadena does not have a TOC program like Los Angeles but implements Transit-Oriented Development (TOD) standards in its zoning code. These standards apply to multi-family, mixed-use, and higher-density residential projects located within roughly a quarter- to half-mile of Metro light rail stations, including Sierra Madre Villa, Allen, Lake, Memorial Park, Del Mar, and Fillmore stations. Projects within these TOD areas are eligible for development flexibility and incentives under the city’s TOD guidelines, encouraging higher-density, transit-friendly, and walkable communities near Pasadena’s transit hubs.
The Transit Oriented Communities (TOC) Incentive Program in Los Angeles offers developers a variety of incentives to encourage residential or mixed‑use projects near major transit stops:
Increased Density: Developers can build more units than normally allowed under zoning.
Height Bonuses: Projects may exceed the standard height limits for their zoning.
Reduced Parking Requirements: TOC projects can often provide fewer parking spaces, especially near high-quality transit.
Flexible Yard and Setback Requirements: Certain open-space and setback rules can be relaxed.
Fee Reductions: In some cases, developers can receive reductions or deferrals on development fees.
Tier-Based Incentives: The level of incentives depends on the percentage of affordable housing units included; more affordable units mean greater benefits.
Pasadenas Transit-Oriented Development (TOD) standards provide similar benefits:
Increased Density and Height: Projects near light rail stations can build more units and taller structures than standard zoning allows.
Reduced Parking Requirements: Developers can provide fewer parking spaces to promote transit use.
Flexible Development Standards: Setbacks, lot coverage, and open-space requirements can be relaxed to encourage higher-density development.
Design Flexibility: TOD standards encourage mixed-use and pedestrian-friendly designs, streamlining approvals for compliant projects.
While Pasadena’s TOD incentives are more about zoning flexibility than a formal program with tiered rewards, they similarly aim to support transit-oriented, walkable, and affordable-friendly development.