Transit oriented development and affordable housing: Analyzing the effects of economic, regulatory and advocacy factors on a developer's decision to include affordable housing in TODs in the Denver, Colorado region

The purpose of this research is to analyze the impact of the economic, advocacy, and regulatory factors on the decision of developers to provide or forego affordable housing in a transit-oriented development (TOD). A literature review identifies eleven variables collectively comprising these factors. The study then analyzes the affordable-housing decisions of developers through the theoretical framework of satisficing. The research argues that TOD developers are satisficers who are willing to produce affordable housing in a given TOD only if the risks can be minimized and satisfactory profits achieved.;The general hypothesis for the study is that the more the three factors (economic, regulatory, and advocacy) interact to reduce risks and create conditions for satisfactory profits, the more likely a developer will be to provide affordable housing. The literature additionally suggests that the economic factor provides the dominant influence on a developer's decision in this regard. In summary, some positive combination of reasonable land costs, stable housing-market conditions, the availability of public subsidies, and a solid expectation of return on investment is required for a developer to consider including affordable housing in a TOD.;The study confirms in the cases reviewed that the economic factor is indeed crucial for each developer's decisions to provide affordable housing or not in their TOD. In all three cases where affordable housing is provided, a positive economic factor which helps reduce risk and create satisfactory profits is present. The study also shows that in the two cases where affordable housing is not provided, the negative advocacy factor characterized by public opposition to affordable housing creates significant costs and risks and thus non-satisficing conditions for the developers.;This research examines five TODs in the Denver region. The study employs interviews with developers and key players from each TOD as well as analysis of the relevant primary documents. A specially developed scale measures the impact of each factor on the various developers' decisions for or against affordable housing. The study concludes with policy recommendations to incentivize developers to increase the production of affordable housing in TODs in both Denver and elsewhere.