Updated July 21, 2026
Los Angeles's Transit Oriented Communities (TOC) program grants density, parking, and FAR incentives to residential projects near major transit stops, in exchange for affordable units — layered in four tiers (1–4) based on proximity to transit, with Tier 4 sites eligible for up to an 80% density increase.
TOC is a City of LA incentive program, separate from (and stackable with) the state density bonus. Tier assignment depends on how close the site sits to a qualifying Metro rail or bus rapid transit stop; higher tiers unlock bigger density increases, reduced or eliminated parking minimums, and additional FAR/height/setback relief, in exchange for a required share of extremely-low, very-low, or low-income units.
A large share of LA's post-2017 multifamily development pipeline has used TOC. For a seller with a site inside a TOC-eligible radius, the tier is a real, often under-marketed value driver — buyers and their architects check it as one of the first diligence items, and a seller who can hand over a completed TOC tier analysis at listing meaningfully speeds up the process.
From the Sterman LA Multifamily Glossary — defined the way a broker actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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