What are Transfer Development Rights (TDR)?
Transfer Development Rights, often abbreviated as TDR, are a unique form of zoning ordinance. They allow property owners with land zoned for low-density or conservation use to sell development rights to other property owners. This system encourages the preservation of low-density uses, such as historical sites, while allowing high-density development elsewhere, rather than penalizing individual landowners.
How TDR Works
Consider a property owner with land designated as open space. Through TDR, this landowner is assigned development rights based on a pre-determined desirable density for the jurisdiction. While they can’t use these rights themselves, they have the freedom to sell them on the open market. Other landowners can then purchase these rights to develop their properties at higher densities than otherwise permitted. This method helps retain open spaces without sacrificing the development potential of their property entirely.
Example:
Under a typical TDR system, a landowner restricted to keeping their property as open space is allocated development rights corresponding with an overall beneficial density for the area. Although the landowner can’t use these rights directly, they can sell them to others. These purchasers are allowed to build additional structures on less restricted properties. This arrangement helps preserve open spaces while enabling added development on other lands.
Benefits of TDR
- Conservation: TDR programs help to conserve natural resources, historic sites, and open spaces.
- Flexibility: They provide a flexible solution where development and conservation can coexist harmoniously.
- Economic Value: Landowners can realize the economic value of their property even when restrictions are in place.
- Smart Growth: Encourages more structured and well-thought-out urban growth patterns.
Potential Challenges
- Complexity: Understanding and implementing TDR programs can be intricate.
- Market Demand: TDR programs need an active market of buyers and sellers to function effectively.
- Regulation Compliance: Navigating additional regulations and ensuring compliance can be daunting for small property owners.
Frequently Asked Questions
1. What happens if a property owner wants to purchase multiple development rights?
- Property owners can purchase multiple development rights to further enhance the density they can achieve on their land, subject to local regulations.
2. How is the value of development rights determined?
- The value of development rights is typically determined by market conditions and may be influenced by factors like location, development potential, and demand.
3. Are TDR programs only effective in certain areas?
- TDR programs can be effective in both urban and rural settings, though their success would depend on local real estate markets and land use priorities.
4. Can any property participate in TDR programs?
- Generally, properties must meet certain zoning criteria to qualify for TDR programs. Participation defaults apply based on local ordinances and regulations.
5. Do TDR programs require government approval?
- Yes, TDR programs typically involve governmental oversight to ensure they meet planning and development standards.
Related Terms: Zoning Ordinance, Development Rights, Density, Historic Preservation, Low-Density Development.
