The 1974 amendments to the Urban Mass Transportation Act of 1964 recognized that joint development of land adjacent to mass-transit stations increases the efficiency of travel patterns and increases both potential ridership and revenues. The Reagan Administration, however, terminated an Urban Initiatives Program to help fund new development projects in transit corridors. A review of six projects in four northeast cities that were prototypes to the funding proposal concludes that private investment is often adequate, although it is essential to have public-sector support. Developers look for both rail and road access and proximity to the central business district when choosing a site. Projects which give top priority to downtown retail businesses that interface with multimodal transportation terminals and second priority to office space in these location would maximize the effectiveness of existing rail systems and optimize urban land use. 7 references, 4 figures. (DCK)