Transferable Development Rights Research Articles

Economic Issues in Programs of Transferable Development Rights

The purpose of this paper is to investigate some of the economic aspects of a program of transferable development rights (TDRs). TDRs have recently been suggested as an instrument for achieving desired land-use patterns within a community or region. Most of the discussion has centered on legal questions; comparatively little has been said from an economic point of view, possibly because the great variety of TDR programs makes generalizations difficult.' It is a conclusion of this paper that apparently minor variations in the institutions and transfer rules governing these programs can result in significant differences in their efficiency within a land-use planning program as well as in the distribution of costs and benefits within a community. As such, a framework to assess the economic impacts of certain of these proposals seems timely. Because space precludes an exhaustive analysis of all the variations on the TDR theme we have restricted our analysis to the following type of program:

Transfer of Development Rights: An Analysis of a New Land Use Policy Tool

AbstractThe issues in establishing and administering a transfer of development rights program are discussed, and an hypothetical program is empirically analyzed. In the case study, administrative assignment of development rights and definition of development unit significantly affected the distribution of program costs. Full compensation to restricted landowners would have required widely fluctuating development right prices. Initial cost burdens varied with type of development as well as within development categories. Timing of development right supply and demand may create problems in the market. Although the TDR concept is promising, many practical difficulties remain.

Two methods for preserving agricultural land at the urban fringe: Use-value assessment and transferable development rights

Two methods for preserving agricultural land are analyzed in this paper: Use-value assessment and transferable development rights. A detailed case study of use-value assessment under the California Land Conservation Act analyzes patterns of land enrollment, landowner perceptions of the program, and development expectations. In addition, an economic analysis compares program benefits to the possible gains from land sales. The results suggest that landowner enrollment at the urban fringe was limited by excessively high development expectations. In contrast to widespread adoption of use-value assessment, the use of transferable development rights for preservation of agricultural land is virtually untried, although the measure is currently receiving widespread attention. The underlying concept of transferable development rights and proposed methods of implementation are presented and major issues and problems associated with such a program are examined. It is concluded that some proponents of transferable development programs appear to be unduly optimistic in their evaluation of prospective outcomes.

The Unconstitutionality of Transferable Development Rights

The Unconstitutionality of Transferable Development Rights

Transfer of Development Rights: A New Tool for Planners

Abstract Transfer of Development Rights (TDR) is being widely discussed as a tool for guiding growth and protecting low-density uses of land. Several recent proposals are discussed which serve to illustrate the diversity of TDR proposals. Each plan raises particular and unique questions which must be addressed, but each must deal in some fashion with the central problem: insuring that a market in fact exists for the development rights, to give them a value, and to provide an incentive for their transfer.

Transfer of Development Rights – Its Problems and Potential as a Land-Use Control Technique

In the Northeast, major problems relating to natural resource use, particularly agriculture, can be attributable in large part to outgrowths of the rural-urban interface. As communities (cities, towns, boroughs, townships, and counties) strive to fulfill their basic needs for health, education, police protection, recreation, housing, highways, and productive open space, new and more sophisticated methods of implementing land-use controls are needed. Experience indicates that in rapidly urbanizing areas traditional land-use mechanisms for directing growth do not guarantee the degree of permanence that is required to preserve productive open space. An alternative land-use control mechanism to ensure open space preservation explored in this paper is the transfer of development rights and the purchase of development easements.

Urban Property Markets: Some Empirical Results and Their Implications for Municipal Zoning

GIVEN the growing urbanization of our society, it appears likely that the urban property market will command increased scholarly attention. Aside from the fact of the mere importance of this market in our modern economy, it deserves such increased attention because it seems to be so poorly understood. Of course, it is true that many of the statements defining perfect markets are applicable to this one. There are many small independent buyers and sellers, none of whom usually control the market. Participants can easily obtain good information about prices from real estate agents and classified advertising. On the other hand, the product is far from homogeneous. More important for the present purpose, this market is supposedly characterized by interdependence. Externalities are said to abound. Introspective evidence as well as informal discussions with those persons in the act of selecting housing lend support to the view that "neighborhood effects" indeed exert important influences in this market. The existence of zoning ordinances tends to indicate that society has accepted this view. Consider the following statement of Haig: