Transfer of Development Rights and Community Development

Abstract

Transfer of development rights (TDR) programs are a land use planning tool that allows for the transfer of development potential from one parcel to another, usually through zoning code provisions. Although TDR programs can serve a wide variety of purposes, TDR is often associated with redevelopment in major cities such as New York City, or with farmland preservation in agricultural areas like Montgomery County, Maryland. This article explores TDR in the context of community development and focuses on the use of the tool to create more equitable and resilient communities. Specifically, the chapter highlights the use of TDR for the development of affordable housing, preservation of community character, and for climate mitigation and adaptation. These applications provide critical lessons about the importance of calibrating TDR to real estate market conditions in order to successfully recruit developer and property owner participation while also demonstrating ways TDR can be part of transformative community building.