Definition
Transfer Development Rights (TDR) is a specialized zoning ordinance that permits property owners of lower-density or conservation-zoned land to sell their unused development rights to other property owners. This market-based approach helps preserve open spaces, historic sites, and agricultural lands by shifting development to areas better suited for higher density structures.
How It Works
- A local government identifies sending and receiving areas.
- Landowners in the sending area, typically zoned for low-density or conservation use, are permitted to sell their unused development rights.
- Landowners in the receiving area can then purchase these development rights, allowing them to increase the density of their developments beyond standard zoning limits.
Example
Two adjacent landowners, A and B, are each allowed to build a ten-story office building. By purchasing A’s unused development rights via TDRs, landowner B can construct a twenty-story building, while landowner A’s land remains undeveloped or used for a lower-density purpose.
Examples
- Urban High-Rise Extensions
- In a densely populated city, an office building in a zoned low-density area sells its development rights to another office building in a higher-density zone, enabling a vertical expansion.
- Conservation of Farmland
- A rural farmland is preserved under TDR by selling its development rights to a suburban developer, allowing more residential units there without expanding into rural lands.
- Historic Preservation
- An owner of a historic property sells development rights, ensuring the site remains unaltered while the buyer increases development potential elsewhere.
Frequently Asked Questions
What Are Sending and Receiving Areas in TDR?
- Sending Areas are designated zones where development rights can be sold. These typically include low-density zones, historic sites, or conservation lands.
- Receiving Areas are zones where additional development rights can be purchased and utilized, often regions targeted for urban growth.
How Do TDRs Benefit the Community?
TDRs help to:
- Preserve green spaces, farmlands, and historic sites
- Promote smart growth by concentrating development in suitable areas
- Reduce urban sprawl
How Are TDR Prices Determined?
TDR prices are determined by market supply and demand. The value varies based on the potential for development in receiving areas and the willingness of landowners in sending areas to sell their rights.
Does Participation in TDR Programs Require Mandatory Compliance?
No, participation in TDR programs is typically voluntary. It incentivizes landowners to conserve lands or reduce densities by offering an economic benefit.
Are TDR Transactions Publicly Recorded?
Yes, TDR transactions are usually documented in public records to provide transparency and ensure proper transfer and utilization of development rights.
Related Terms
Zoning Ordinance
A regulation that defines how property in specific geographic zones can be used. It covers land use designations such as residential, commercial, industrial, and agricultural.
Density Bonus
An incentive-based tool that permits developers to build additional units beyond the base density in exchange for fulfilling certain community goals, such as affordable housing or green building practices.
Urban Growth Boundary (UGB)
A regional boundary designated to control urban sprawl by delineating areas intended for higher-density urban development from those preserved for rural use or open space.
Online Resources
- Understanding TDR Programs by American Planning Association
- Smart Growth America: TDR Toolkit
- TDR 101 by Transfer of Development Rights Foundation
Suggested Books
- “Transferable Development Rights Programs: An Economic and Policy Analysis” by John P. R. Beckman
- “The TDR Handbook: Designing and Implementing Transfer of Development Rights Programs” by Arthur C. Nelson, Rick Pruetz, and Doug Woodruff
- “Planning and Urban Design Standards” by American Planning Association
Fundamentals of Transfer Development Rights (TDR): Urban Planning Basics Quiz
Thank you for exploring the concept of Transfer Development Rights (TDR) and for engaging with the quiz to enhance your understanding of this essential urban planning tool.
