Definition of Transferable Development Rights (TDR)
Transferable Development Rights (TDR) represent a zoning innovation designed to control urban sprawl and encourage the preservation of natural, agricultural, or historical resources. Essentially, TDR programs permit landowners to sell the rights to develop their land (the sending area) to developers or other entities, who then use these rights to increase the density of development in another designated area (the receiving area).
Key Components:
- Sending Areas: Locations targeted for preservation, where development rights are severed.
- Receiving Areas: Locations designated to absorb the increased density transferred from the sending areas.
- TDR Credits: The quantifiable units of development potential that are transferred between parcels.
Examples of Transferable Development Rights (TDR)
- Farmland Preservation: In a rural community, farmers can sell TDRs to developers who wish to build high-density housing in urban zones, enabling the farmland to remain undeveloped.
- Urban Infill: A city might allow the transfer of development rights from heritage buildings or parks to central business districts, thereby preserving historical sites while promoting downtown growth.
- Environmental Protection: Development rights from ecologically sensitive areas can be sold, restricting construction in these zones while encouraging sustainable development elsewhere.
Frequently Asked Questions (FAQs)
What is the main goal of Transferable Development Rights (TDR)?
The primary objective of TDR schemes is to manage and direct growth, ensuring development occurs in appropriate areas while protecting land that has agricultural, environmental, historical, or cultural value.
How do TDR programs benefit property owners?
Property owners in sending areas can monetize otherwise restricted land by selling development rights, which they would not be able to fully exploit due to zoning restrictions.
Who regulates and administers TDR programs?
Local governments or regional planning authorities typically oversee TDR programs. They set the rules, designate sending and receiving areas, and ensure compliance with zoning regulations.
Can TDR programs be applied in all areas?
Not all areas are suitable for TDR programs. Success depends on market demand for increased development density in receiving areas and the community’s valuation of preserving sending areas.
What challenges are associated with TDR programs?
Key challenges include establishing a balanced market for TDR credits, bureaucratic complexity, and ensuring public understanding and support for such programs.
Related Terms and Definitions
Zoning
A regulatory toolkit used by municipalities to control land use, ensuring harmony between different uses and promoting public welfare.
Urban Sprawl
The uncontrolled or unplanned expansion of urban areas into the surrounding countryside, often characterized by low-density residential development.
Density Bonus
A zoning incentive allowing developers to exceed standard density limits in exchange for providing public benefits, often tied to goals like affordable housing or sustainable development.
Land Banking
The practice of acquiring, holding, and managing land for future public or private use, often used to control the timing and nature of development.
Online Resources
- American Planning Association (APA): www.planning.org
- The Lincoln Institute of Land Policy: www.lincolninst.edu
- The Smart Growth Network: www.smartgrowth.org
- U.S. Environmental Protection Agency (EPA) Smart Growth: www.epa.gov/smartgrowth
- Local Government Training: www.localgovtraining.com
References
- Pruetz, Rick. “Beyond Takings and Givings: Saving Natural Areas, Farmland, and Historic Landmarks with Transfer of Development Rights and Density Transfer Charges.” Arje Press, 2015.
- Skidmore, Mark, and Krmenec, Andrew J. “Transferable Development Rights: A Policy Approach for Urban Growth Management in the United States.” Land Use Policy, 2009.
Suggested Books for Further Studies
- Pruetz, Rick. “Transfer of Development Rights Updated and Expanded: Using the Market for Compensation and Preservation.”
- Gordon, Peter, and Richardson, Harry W. “Urban Planning and Development.”
- Nelson, Arthur C., and Duncan, James B. “Growth Management Principles and Practices.”
