1 / 14

TRANSFERRING DENSITY AND DEVELOPMENT RIGHTS

TRANSFERRING DENSITY AND DEVELOPMENT RIGHTS. OVERVIEW. Creating an effective TDR Program Steps involved in setting up a TDR Program. AN EFFECTIVE TDR PROGRAM. Separates the development value of land from the residual or farm value of land Uses private sector funds to preserve land

lucas
Télécharger la présentation

TRANSFERRING DENSITY AND DEVELOPMENT RIGHTS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TRANSFERRING DENSITY AND DEVELOPMENT RIGHTS

  2. OVERVIEW • Creating an effective TDR Program • Steps involved in setting up a TDR Program

  3. AN EFFECTIVE TDR PROGRAM • Separates the development value of land from the residual or farm value of land • Uses private sector funds to preserve land • Redirects growth to places more suited to growth • Helps protect critical farms and open space. • Low density zoning doesn’t preserve land!

  4. TDR PROGRAM • Establishing a TDR Program involves the following steps: • Designate Sending and Receiving Areas • Prepare a Market Study • Designate Transfer Ratios • Establish mechanisms for transferring development rights • Establish administrative procedures to track TDRs • Write implementing legislation

  5. SENDING AREAS • Sending Area Size • If Sending Area is too large, there will be insufficient Receiving Areas to use the TDRs. • If Sending Area is too small, Receiving Area developers may be discouraged from purchasing TDRs.

  6. RECEIVING AREAS • Receiving Area Location and Size • Adequately sized to create an active market • Must have development potential • Additional density must be compatible with neighborhood character • Demand for higher density development

  7. MARKET STUDY • Determines the value that TDRs will likely have, given local conditions and real estate markets • Helps to determine viability of the program • Gives direction for establishing Sending and Receiving Areas

  8. MARKET VALUE • Raw Land Value vs Lot Value • RAW LAND value is a fraction of total Lot value • Lot value includes engineering costs, development costs, carrying costs, risks and profits.

  9. TRANSFER RATIOS • Transfer ratio is the amount of development that may occur on a Receiving Area site based on the purchase of a Development Right. • Example: 1 development right per 5 acres in Sending Area increases density in Receiving Area by 1 dwelling unit per acre. Development Right

  10. DESIGNATE TRANSFER RATIOS • A 1:1 ratio is the simplest. • It is also leasteffective. • Most successful programs allow rights to transfer at a ratio greater than 1:1 to create an incentive in the Sending Areas.

  11. TRANSFER MECHANISMS • Private Transactions • Simultaneous sale and purchase of rights. • Commodity-based TDR Systems • County issues TDR certificates. Developers purchase at negotiated price. • TDR Bank with Public Purchases of TDR • County establishes bank. Bank provides a reliable market, simplifies developer’s task of finding transferable density. Creates revolving fund for future development right purchases.

  12. Another Mechanism • Density Transfer Charges. Sending Area landowners pay a fee in lieu of transferring development rights. • Fee is held in a separate fund and is used to purchase development rights in the Rural Tier. • Technique provides flexibility but involves up front work to calculate fee amounts.

  13. PROGRAM ADMNISTRATION • Administration includes tracking and recording TDR sales, Sending Area restrictions and Receiving Area rights. • MD law requires the County to designate zoning districts where TDRs can be used.

  14. TDR ORDINANCE • Final step is drafting and adopting a TDR Ordinance. The Ordinance will set forth: • Procedures to be used to accomplish density transfers, including recordation requirements; • Allowable use of lands subject to conservation easements; • Conversion ratios for residential and non-residential uses; and • Other development standards as deemed appropriate.

More Related