This bill establishes the Enhanced Transit Village Program within the Office of Planning Advocacy in the Department of State, with support from the Department of Transportation (DOT). The program aims to incentivize mixed-use development near public transportation hubs, utilizing smart growth principles to enhance community planning and land use. The Office of Planning Advocacy will oversee the selection of municipalities that apply to participate in the program and assist them with necessary planning and zoning assessments. The DOT will manage the transportation infrastructure components, including grants and guidance for municipalities to improve their transportation systems in alignment with the program's goals.

The program is designed to enhance the quality of life in designated transit villages by improving walkability, bikeability, and access to public transportation while reducing reliance on automobiles. It includes provisions for establishing residential building options with varying densities based on proximity to transit points, as well as requirements for municipalities to meet smart growth criteria, such as affordable housing mandates and pedestrian-friendly designs. Funding for the program will come from the Transportation Trust Fund, with an initial allocation of $50 million for the first three years, and priority will be given to projects that meet affordable housing goals. The bill also allows the Office of Planning Advocacy to collaborate with other state and local agencies to achieve its objectives.