Clark Hill 2026 Commercial Real Estate Market Update: Transit Oriented Development and Affordable Housing Mandates Gain Momentum in MA and FL

States and localities across the US are enacting legislation to promote Transit Oriented Development (TOD) as communities continue to focus on addressing severe affordable housing shortages while promoting walkable, dense, mixed income infill development with easy access to transit; and as the value of TOD communities continues to be proven through increases in local tax bases and in surrounding property values. This article briefly discusses recent developments in TOD legislation in Massachusetts and Florida, where the author is licensed and where he represents developers (TOD and otherwise) in land use, development and transactional real estate matters.

MASSACHUSETTS

In 2021, the Commonwealth of Massachusetts enacted what is considered the most comprehensive top-down TOD mandate in the US when Governor Charlie Baker signed the MBTA Communities Act into law. The Act requires that all 84 communities that host MBTA service, including rapid transit, commuter rail, ferry or bus, and all 93 communities that share a border with a City or Town that is served by the MBTA, establish “at least 1 [zoning] district of reasonable size in which multi-family housing is permitted as of right”. The 177 total “MBTA communities” include much of eastern MA and a large swath of central MA (a map of all 177 MBTA Communities is found here).

The Act further requires that the multi-family housing permitted under its provisions must not be age restricted and must be suitable for families with children. It then goes on to impose a minimum gross density in the districts established of 15 units per acre, (subject to further limitations imposed elsewhere under MA law). Finally, the Act mandates that the established districts must be located not more than 0.5 miles from a commuter rail station, subway station, ferry terminal or bus station (however some localities have been permitted to locate their MBTA district 1 mile from stations).

Any MBTA community that does not comply with the Act is, as a result, not eligible for funds from important state level infrastructure and housing funding programs and subject to enforcement (these are named in the Act and include the MA Housing Choice Initiative, Local Capital Projects Fund, MassWorks infrastructure program and HousingWorks infrastructure program). As of January, nine towns were sued by the MA Attorney General for noncompliance and are losing state funding. These nine include Dracut, East Bridgewater, Halifax, Holden, Marblehead, Middleton, Tewksbury, Wilmington, and Winthrop. Also as of January, there are approximately 7,000 new housing units in the pipeline in 34 towns and cities; with projects ranging from 2 to 500 units. Gains have been modest, but opportunities abound in the Bay State (Review of early results of MBTA Communities Act finds law has produced “real but modest” gains, but not necessarily near transit, The Boston Foundation, January 28, 2026 ).

FLORIDA

Florida, similarly beset by a housing affordability crisis (of the magnitude imaginable in a state of 23 million people and growing), in 2023 passed a sweeping, state-level mandate for affordable and workforce housing known as the Live Local Act (Live Local). Under Live Local, the state mandated that local governments permit, by right, affordable housing developments in areas zoned for commercial, industrial, and mixed-use (and planned developments via recent amendment). To be eligible, a proposed project must set aside at least 40 percent of its residential units as affordable rental units to income-eligible households (at or below 120 percent AMI) for a period of at least 30 years. Live Local also includes significant property tax exemptions of 75% to 100% for projects with at least 71 units catering to residents earning 120% or less of the Area Median Income (AMI). Other Live Local provisions include significant funding for development of affordable housing. Several Live Local projects have been approved thus far, with a number of those having broken ground and a smaller number having been completed with residents moving in (Overview of the Live Local Act, Florida Housing Coalition).

Following the momentum of Live Local, the 2026 Florida legislative session saw a push for a TOD Act. The proposed bill (SB 1342 and HB 1183) died in the Rules Committee but is likely to re-emerge next session. The TOD Act, in its latest iteration, would require local governments to (i) zone lots within a “TOD zone” for mixed-use development, (ii) include residential and commercial uses by-right, and (iii) prohibit local zoning standards that are more restrictive than the policies outlined in the Act. Local governments would need to establish TOD zones by ordinance by a set deadline, and incorporate those zones into comprehensive plans, land development regulations, and any other applicable regulations (Building Housing Along Transit Lines: Florida’s TOD Act Explained, Housing Action Lab at the Florida Housing Coalition).

Despite the TOD Act faltering in the 2026 session, there are several municipalities in Florida that have already passed ordinances promoting TOD, and a number of TOD projects are completed or underway in southeast Florida and elsewhere in the state. Jurisdictions with TOD ordinances include City of Miami, Miami-Dade County, Fort Lauderdale, St Petersburg and the West Palm Beach and the Palm Beach Transportation Planning Agency. Some completed projects include the following, with a number of additional projects in planning and development stages: Wynwood Haus (Miami, 2023): A 224-unit multifamily residence near the School Board Metromover Station and Brightline, featuring workforce housing; Grove Central (Miami, 2023): Located adjacent to the Coconut Grove Metrorail station, providing 402 residential units and 172,000 sq. ft. of retail; Weston Park (Longwood, Seminole County, northeast of Orlando): Multifamily apartments built next to the SunRail station, featuring a 300-car parking garage; Motion at Dadeland (Miami): Residential development directly adjacent to Dadeland North Metrorail station; Link at Douglas (Miami): A multi-phase project situated at the Douglas Road Metrorail station; DeBary Main Street (DeBary, Volusia County, west of Daytona): TOD located next to the SunRail Station and regional trail system.

With the growth of the Brightline rail system (stations in Cocoa and Tampa are in planning stages) and various regional rail and transit projects announcing expansions and adding new stations in Florida’s urban areas, this is only the beginning of what will be a long era of TOD development in the Sunshine State.

These developments in Massachusetts and Florida represent just a few examples of a broader national trend toward state and local mandates and incentives that promote TOD and increased housing supply, particularly affordable and workforce housing. Legislatures, governors, and municipal governments across the country are experimenting with similar zoning reforms, preemption statutes, density incentives, and funding mechanisms to address housing shortages and support transit investments. Clark Hill continues to closely monitor TOD, affordable housing, and related land use legislation and regulatory activity throughout the firm’s multistate footprint and to advise developers, property owners, and investors as these frameworks evolve and create both new compliance obligations and development opportunities.

This article is one of several insights featured in Clark Hill’s 2026 Commercial Real Estate Market Update. Explore the full series for timely insights on legal, regulatory, and market developments impacting the CRE industry.

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