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Transit-Oriented Development: How State Investment is Driving Accessible, Affordable Housing in Maryland

Jun 02, 2025

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TOD Image Horiz

by Patrick Stewart, Regional Vice President, Maryland, D.C., Virginia

A recent agreement between the Maryland Department of Housing and Community Development (DHCD) and Maryland Department of Transportation (MDOT) signals the state’s emphasis on transit-oriented development (TOD) as a strategy to advance its transit, economic development, housing, and climate goals.

The DHCD-MDOT agreement prioritizes dense, mixed-use and mixed-income development within a half mile of transit stations to foster vibrant community hubs. This approach aligns funding, including the Transit-Oriented Development Capital Grant and Revolving Loan Fund, and advocacy to help address Maryland’s 96,000-unit housing shortage while simultaneously building a greener, more sustainable state infrastructure.

A key component of the agreement is to cooperatively deliver affordable housing, as a critical local resource, where it is needed most – “next to high-quality transit assets.”

While Maryland’s commitment and support of TOD is a huge step forward for inclusive, equitable housing, there are still challenges for affordable developers as it relates to limited land and site availability, high acquisition costs, and intense competition from market-rate developers.

However, Pennrose has been successful in working creatively with communities in Maryland through cross-sector partnerships to achieve the same TOD benefits, without relying on Washington Metropolitan Area Transit Authority (WMATA)-owned land.

For example, projects like Capitol Heights and Sanctuary at Hyattsville Crossing, will create impactful, transit-adjacent housing solutions in alignment with Maryland’s vision.

Capitol Heights

In partnership with the town of Capitol Heights and Argos Group, Pennrose is developing a 146-unit, mixed-use community on underutilized town land. The project is directly south of Capitol Heights Metro station, offering residents a convenient 10-minute commute to Washington, D.C. via WMATA’s Blue or Silver Line.

The innovative public-private collaboration comes at a pivotal time for Capitol Heights, as Prince George’s County is prioritizing investment along the Blue Line corridor and a “Complete Streets” redesign plan. WMATA also recently issued an RFQ to develop a six-acre, live-work-learn-play community on adjacent Metro-owned land, which will serve as a catalyst for future housing, resources, retail, and amenities around the station.

The project presents a unique opportunity to provide housing that remains attainable in a neighborhood that is expected to see significant growth, investment and capital improvements.

Sanctuary at Hyattsville Crossing

Located across the street from the Hyattsville Crossing station, Pennrose is working closely with First United Methodist Church and Sanctuary AP3 to develop 120 units of intergenerational, affordable housing on church-owned land.

The Church, which has served the neighborhood for decades and is closely embedded within the community, has played an active and essential role in aligning project plans with local community needs. 

Once complete, Sanctuary at Hyattsville Crossing will deliver much-needed quality, affordable housing for families and seniors, with up to 30% of units set aside for formerly homeless households. In addition to offering easy access to public transit, the project is also in close proximity to schools, shopping, grocery stores, and community spaces, including the county’s planned intergenerational center.

Mission-driven development and a shared vision has allowed Pennrose to help the First United Methodist Church mitigate real estate challenges and leverage property to create quality, affordable housing within their community.

These innovative developments also highlight how a “TOD” does not necessarily need to be owned by or built in conjunction with a transit agency to deliver the same benefits to the community and the region. Capitol Heights and Hyattsville demonstrate how novel, cross-sector partnerships play an important role in helping Maryland become a more accessible, affordable, and environmentally-friendly place to live.