What are Transfer of Development Rights ?
Transfers of Development Rights (TDRs) relieve market pressures that threaten to turn low-density property, such as agricultural land or a historic building site, into a higher density use that promises greater economic return. How Does It Work? Municipalities must determine which areas of town require preservation and which areas will be developed. Property owners in the preservation area may split off the rights for further development of the land from the rest of their property rights and sell them to be used in areas designated for development. Owners of development sites pay the cash value of the development rights to increase the value of their property proportionately. What Are The Limitations? TDR’s are not useful in areas experiencing less than high growth or with no high growth prospects. They have limited use in a town with a large area of land requiring preservation yet without an equivalent amount of land where increased density would be appropriate. What Does It Do? TDR’s
