The Transit-Oriented Housing Development Act of 2026 provides tax incentives and funding to encourage affordable housing construction near public transportation. The bill increases state housing bond allocations by 30 percent for projects located within a half-mile of transit stations, with units required to serve households earning up to 120 percent of area median income, including at least 20 percent of units for those earning 50 percent or less of median income. It also increases tax credits for transit-oriented developments by 50 percent (or 100 percent for projects meeting prevailing wage standards), making such projects more attractive for private investment. Additionally, the legislation appropriates $30 billion annually for fiscal years 2026 through 2035 to the Housing Trust Fund, prioritizing projects within transit hubs. These changes take effect for bonds and credits issued after December 31, 2025, aiming to create more affordable housing in walkable, transit-accessible communities.