Can a TDR Program be Terminated Once it is Initiated?
Once a TDR certificate is created, it represents fixed interest in property. If through government action the use of that certificate was canceled or terminated by action of the County, the County would risk having to compensate the holder of the certificate. That action could be construed as taking all economic value of the certificate and require just compensation as a takings. The actions of the County that might arguably lead to a taking would be termination of the program administration, failure to enforce the program (leading to loss of value in certificates), elimination of the receiving areas, and authorizing other methods for property owners to obtain the bonus development otherwise allowed only by a TDR certificate. See, Fred F. French Investing Co. v. City of New York, 350 N.E.2d 381 (N.Y.1976).
