TRANSFER OF DEVELOPMENT RIGHTS

 

Transfer of Development Rights (TDRs) is a program aimed protecting our natural resources. Transfer of development rights is defined as;

“a device by which the development potential of a site is severed from its title and made available for transfer to another location. The owner of a site within a transfer area retains property ownership, but not approval to develop. The owner of a site within a receiving area may purchase transferable development rights, allowing a receptor site to be developed at a greater density.”

 

It is therefore a method for land protection through transferring the rights to develop from an area and giving them to another. This occurs through consensus to place conservation easements on property in agricultural areas and on the other hand allowing development densities to increase in those areas that are being developed. Normally, costs of purchasing the easements are recovered from developers who receive building bonus. There has been increasing preservation and protection of open space, natural resources, farmland, and urban areas of historical importance all over the country as a result of this program. This program has been used to secure land for solid waste facilities as well as golf courses. Currently, more than 20 states have amended or enacted statutes accommodating the TDR concept and 7 states have statutes specific to farmland protection.

 

The ownership of a property can be described as an individual’s rights. Land ownership includes rights pertaining to minerals, agriculture, timber, surface and ground water, air, and development among others. In most cases the individual development rights are constrained by the use of zoning.

 

TDRs concept provides for financial compensation to property owners while the society imposes the necessary land use regulations in order to control growth and development. The development right is independent of land ownership and can be shifted from one area to another.

 

The cost of TDR in this county has been changing substantially. In 1983 a unit of TDR was selling for $1,000 an acre while in 1996 it was selling for $2,200 an acre. TDR in this county has been of great success due to its integration with programs such as Purchase of Development Rights and are accredited for preservation of 93,000 acres of land in Michigan.

Montgomery County enacted an ordinance in 1980 putting the national TDR program in place. This program has helped in protection of more than 40,000 acres of farmland, which is still under the farmer’s ownership and has resulted in the shifting of development, in the county, from agricultural areas to growth areas.

 

 

 

 

 

Reference:

 

  1. Definition of Transfer of Development Rights http://www.sustainable.doe.gov/landuse/transfer.shtml.
  2. Michigan TDRs program http://www.michiganfarmbureau.com/publications/farmnews/mfn10301999/farmland.html
  3. Transfer of Development Rights: an “other people's money” scheme http://www.mahb.com/landuse/tdr.htm
  4. Ohio State University fact sheet – Transfer of Development Rights

http://ohioline.osu.edu/cd-fact/1264.html