Transferable development rights (TDR) is a method by which
developers can purchase the development rights of certain parcels within a designated "sending district" and transfer the rights to another "receiving district" to increase the density of their new development. The underlying legal concept of a transfer of development rights programme is the notion that all land has a bundle of property rights. It is used for controlling land use to complement
land-use planning
Land use planning is the process of regulating the use of land by a central authority. Usually, this is done to promote more desirable social and environmental outcomes as well as a more efficient use of resources. More specifically, the goals ...
and
zoning for more effective urban growth management and land conservation.
Description
The TDR process can be considered a tool for controlling
urban sprawl by concentrating development. TDR is a legal mechanism offered in some local government jurisdictions as a form of
development control. In the United States, TDR are also a way to avoid
constitutional takings issues caused by rezoning areas that would otherwise eliminate a significant amount of value from the property. The procedure offers landowners financial incentives or bonuses for the conservation and maintenance of the environmental, heritage or agricultural values of their land. TDR is based on the concept that with land ownership comes the right of use of land, or
land development
Land development is the alteration of landscape in any number of ways such as:
* Changing landforms from a natural or semi-natural state for a purpose such as agriculture or housing
* Subdividing real estate into lots, typically for the purpose ...
. These land-based development rights can in some jurisdictions be used, unused, sold, or otherwise transferred by the owner of a parcel.
Sending districts are commonly made up of areas with desirable traits that are at risk of being developed such as agricultural lands or wilderness areas, but may also be newly designated historic sites. Alternatively, parcels with buildings that do not use all of their available size have "excess" developable capacity that can be conveyed to other parcels, possibly adjoining the first parcels.
Receiving districts are typically are located in urban areas that are ripe for development. Receiving districts are generally areas more suited for higher density developments and sending districts are areas with environmental, heritage or agricultural values that the county, city or town wishes to preserve.
TDR