Periodically, I have a conversation with someone about development and offering incentives instead of taking away value from the landowner/investor. In talking with a friend earlier today, we both agreed it would make so much sense to move density from one property to another. I brought up one developed property and the loss of affordable potential after years of delay eliminated more and more of the profit. If only “incentives”, not obstruction, had been a part of the conversation!
TDR stands for “Transfer of Development Rights”. Consider a purchase of one property by one developer or by the city. That property might have a certain number of units in density. If you create a mechanism to bank that total density and offer it as either an incentive to that developer or another property owner, you could either sell those units of density, bargain with them to incentivize affordable housing or accomplish another goal. The key is avoiding a cost to the taxpayer, while incentivizing a change.
What is ‘Transfer of Development Rights?’ A zoning tool enabling the transfer development potential from areas the community seeks to conserve to areas to areas it seeks to be developed
A mechanism that permanently protects undeveloped land without the expenditure of public funds
Source: New Hampshire Transfer of Development Summary 12/10/18. http://www.snhpc.org New Hampshire Southern Planning Commission
Consider the cost of land and limited tax dollars. Doesn’t it make sense to consider alternatives to do the same thing?