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Glossary Term

Transit Oriented Communities Definition

Transit Oriented Communities rules can affect development potential near qualifying transit. Buyers review site specifics before assigning value to TOC upside.

By Don Favia · Updated September 17, 2026

Direct Answer

Transit Oriented Communities (TOC) is a City of Los Angeles incentive program that allows qualifying housing projects near major transit stops to build more units in exchange for including restricted affordable housing. Projects must meet the program's transit-location, affordability and other eligibility requirements. [1][2] Transit Oriented Communities rules can affect development potential near qualifying transit. Buyers review site specifics before assigning value to TOC upside.

Verify the Site and Proposed Project

Start with Los Angeles City Planning's TOC program page, which links the guidelines and tier-verification forms. Have the planning team confirm the applicable tier, affordable-unit obligation and any housing-replacement requirements before marketing a unit count. A location near transit alone does not establish eligibility. [1][2]

This is for general informational purposes only. Consult with your CPA, tax advisor, and/or attorney for guidance specific to your situation.

Sources

  1. [1] Los Angeles City Planning, Transit Oriented Communities Incentive Program
  2. [2] Los Angeles City Planning, TOC Guidelines, definitions and eligibility; currently linked edition revised February 26, 2018