The area surrounding the Bay Street train station has been designated a Transit Village by the New Jersey Department of Transportation (see Transit Village and Redevelopment Areas map). The designation recognizes that Montclair has demonstrated a commitment to revitalizing and redeveloping the area around the station into a compact, mixed-use neighborhood with a strong residential component. Designation provides a municipality with the following benefits:
- State of New Jersey commitment to the municipality's vision for redevelopment.
- Coordination among the state agencies that make up the Transit Village Task Force.
- Eligibility for grants from the New Jersey Department of Transportation (NJDOT).
- HMFA location-efficient mortgages for people who buy residences near transit, priority points for Low Income Housing Tax Credit applications, and rehabilitation loans and financing for residential development.