APPROACHES TO RESEARCH ON TRANSFERABLE DEVELOPMENT RIGHTS PROPOSALS: AN OVERVIEW

Abstract

COMMENTS AND NOTES Present land use control mechanisms are seen as inadequate for the preservation of open space, agricultural land, and other ·'uneconomic" uses of land. Many proposals have been cited as possible solutions to the problems created by present land use control mechanisms. The transfer of development rights (hereafter known as TDR's) is one such proposal. This mechanism for land use control can be of several forms.' There are severe theoretical and practical problems, to be discussed, which a transfer of development rights program must overcome if it is to function in practical application . TDR is a program which utilizes the basic concepts of zoning and seeks to prevent the economic incentives to alter zoning by giving "just compensation" to the landowner who cannot develop his land to its highest market potential due to zoning for low density or nondeveloped purposes. In exchange for low density zoning and the forfeiting of the right to fully develop his land , the restricted landowner is given "development rights." The development rights are then purchased by land developers who must be in possession of a certain number of development rights to be allowed to develop the land in a specified development area over a pre-determined level of density . In this manner, development can take place, though only in specified areas, and restricted landowners may receive compensation for not being able to develop their land. In theory, society benefits from the preservation of open space, agricultural land, and myriad other "uneconomic" land uses. In theory, TDR is a good planning tool. Desirable land uses are obtained with little public cost. Owners of controlled property are compensated in the form of cash or development rights and property tax reductions. Developers who buy development rights can exceed conventional zoning regulations and pay no more than they normally would for the purchase of additional lands. In short, ideally, all parties involved in the TDR program are economically better off whi.le open space, agricultural land, and other "unprofitable" uses of land are maintained.