Alex Armlovich:

New York City needs lots of additional private housing, but restrictive regulations make building it difficult. The city also requires better subways and buses, but the Metropolitan Transportation Authority (MTA), America’s largest public transit agency, is hampered by funding shortages as well as by poor management.

This paper suggests a housing–public transit “grand bargain”—used successfully, on a smaller scale, for Manhattan’s Hudson Yards development and elsewhere—that would help tackle both problems: it would allow larger residential buildings near public transit hubs across New York City in exchange for more money for the MTA. Specifically, it would relax zoning rules in return for one-time fees (“incentive zoning”) and the continuous higher property-tax revenue generated by larger buildings (“tax-increment financing”).