During the campaign, now-President Barack Obama argued that the federal government could contribute to the planning and development of neighborhoods around the country through a livable communities initiative, arguing that “Our communities will better serve all of their residents if we are able to leave our cars to walk, bicycle and access other transportation alternatives.” Secretary of Transportation Ray LaHood and Housing and Urban Development Secretary Shaun Donovan testified today on the issue in front of the House Subcommittee on Transportation and Housing (part of the Appropriations Committee).

Both Secretaries argued that transportation and housing had to be planned together in order to handle the rising costs of both for most American households. Each pointed out that providing housing near public transportation allows for lower transportation costs and argued that transportation and housing in the United States should be organized in order to address climate change concerns.

HUD and DOT will establish a Sustainable Communities Initiative, which will encourage transit-oriented development. The initiative will encouraged integrated planning with HUD and DOT working together on neighborhood projects by encouraging metropolitan areas to consolidate their current government-mandated five-year housing plans and four-year transportation plans, both of which are used to determine federal formula appropriations to communities. The program will also consider transportation costs when determining the level of affordability in communities and develop “livability measures” to benchmark improvements that can be made to communities through federal funding. Finally, HUD and DOT programs and research will be “harmonized.”

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