Transfer of Development Rights (TDR) is a land-use planning tool that allows property owners to transfer the right to develop one parcel of land to another parcel. This mechanism is often used to preserve open space, farmland, or historic properties while allowing for increased development in designated areas. Overall, TDR is a tool that, when implemented effectively, can balance development and conservation goals within a community.

 

Key Components of TDR

• Sending Area: This is the area where development rights are sold or transferred from. These areas are typically designated for conservation, agriculture, or low-density use.

• Receiving Area: This is the area where development rights are purchased or transferred to. These areas are targeted for higher density or more intensive development.

• Development Rights: These are legal entitlements allowing a landowner to develop a certain number of residential or commercial units.

 

How TDR Works

• Designation of Areas: Local governments designate sending and receiving areas based on planning goals such as conservation and urban growth.

• Valuation of Development Rights: The development rights are appraised to determine their market value, which can vary depending on location and potential development benefits.

• Sale or Transfer: Property owners in the sending area sell their development rights to developers or other parties interested in increasing the density in the receiving area.

• Regulatory Approval: The transfer must comply with local zoning regulations and may require approval from planning authorities.

• Recording the Transfer: The transaction is recorded to ensure that the sending parcel remains restricted from further development, while the receiving parcel is allowed increased development.

 

Benefits of TDR

• Conservation: Helps preserve agricultural land, open spaces, and environmentally sensitive areas.

• Efficient Land Use: Encourages higher density development in areas with existing infrastructure, reducing urban sprawl.

• Flexibility: Provides landowners in the sending area with a financial incentive without requiring them to develop their land.

 

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