OBAG 2 | Fund + Invest | Our Work


On November 18, 2015, MTC adopted the funding and policy framework for the second round of the One Bay Area Grant program. The program framework was revised on July 27, 2016 to distribute additional revenues and incorporate additional housing-related program elements.

Known as OBAG 2 for short, the second round of OBAG funding is projected to total roughly $916 million to fund projects from 2017-18 through 2021-22.

The OBAG 2 program is divided into a Regional Program, managed by MTC, and County Program, managed by the nine Bay Area Congestion Management Agencies (CMAs).

Regional Program

  • $530 million over 5 years
  • Maintains commitments to priority regional transportation programs
    •   Transit Priorities Program (Clipper & BART Car Replacement), Active Operational Management, and the Pavement Management Program
  • Dedicates funds to regional initiatives to support Plan Bay Area
    •   Priority Development Area (PDA) Planning and Implementation, Priority Conservation Area (PCA), Climate Initiatives, and Regional Planning
    • Bay Bridge Forward suite of operational roadway and transit improvements
    • Naturally-Occurring Affordable Housing (NOAH) pilot revolving loan fund
    • Pilot program to incentivize the production of affordable housing – 80K by 2020 Challenge Grant
  • The specific projects that will be funded through the Regional Program will be adopted by the Commission in the near future

County Program

  • $386 million over 5 years
  • Flexibility to support local priorities. Cities and counties can use these funds to invest in:
    • Local street and road maintenance
    • Streetscape enhancements
    • Bicycle and pedestrian improvements
    • Safe Routes to School projects
    • Priority Conservation Areas (PCAs)
    • Transportation planning
  • Funds are targeted to projects in Priority Development Areas (PDAs) to support efforts for focused growth
  • CMAs will manage countywide calls for projects and recommend a list of projects for adoption by the Commission in early 2017.

Program Schedule

Partner Agency Resources

Questions? Contact Mallory Atkinson at matkinson@bayareametro.gov or (415) 778-6793

The OBAG 2 framework was developed by MTC with help from the Bay Area Partnership, advisory committees and various transportation stakeholders.

OBAG 2 Program (as revised July 27, 2016)

OBAG 2 Program (as adopted November 18, 2015)


MTC staff worked with local jurisdictions, CMAs, and stakeholders to develop a recommendation for anti-displacement and affordable housing policies for the Commission to consider for OBAG 2.

At the July 27, 2016 Commission meeting, MTC adopted several revisions to the OBAG 2 framework related to affordable housing, including:

  •  $10 million set-aside for a pilot fund to support affordable housing where it currently exists, referred to as the Naturally-Occurring Affordable Housing (NOAH)
  • $30 million challenge grant program to incentivize local jurisdictions to produce affordable housing in Priority Development Areas (PDAs) and Transit Priority Areas (TPAs). The “80K by 2020” challenge grant includes a requirement that units that are affordable at the very low and low-income levels must be deed-restricted, in order to ensure lasting affordability in areas that are anticipated to see significant growth and redevelopment.
  • To be eligible to receive OBAG 2 funding, applicable cities and counties are required to adopt a resolution affirming that they are complying with the Surplus Land Act, which requires public agencies to give the first priority to developers of affordable housing when disposing of surplus lands.

OBAG 2 supports the Sustainable Communities Strategy for the Bay Area by promoting transportation investments in areas that are expecting future growth, known as Priority Development Areas or PDAs.

To ensure that transportation projects support and encourage development in PDAs, the each county develops a PDA Investment and Growth Strategy. The purpose of the strategy is to encourage CMAs to engage with regional and local agencies in their county, support jurisdictions in meeting their adopted housing goals, and to prioritize investments in transportation that improve connections between housing and jobs, particularly in areas planned for future growth in the PDAs.

As part of OBAG 2, the CMAs must adopt an update to their PDA Investment and Growth Strategy by May 2017. To assist with the update effort, MTC has developed a guidance document that includes housing and transportation data, a sampling of relevant housing policies, and links to adopted policies from around the region and the state.

Additional Data: