RD1 - Transferable Development Rights (TDR) (Draft)

  • Published: 1989
  • Author: Special Subcommittee
  • Enabling Authority: House Bill 1187 (Regular Session, 1989)

Executive Summary:
At your initial meeting you requested a memorandum identifying major issues to consider in addressing whether local governments in Virginia should be authorized to enact TDR ordinances.

The number of articles written about transferable development rights, as someone noted, far exceeds the number of TDR programs which have been adopted. The American Planning Association determined that less than fifty localities across the country had adopted TDR plans as of 1987. Fewer still actually had operating programs. The APA study indicated between twelve and twenty-one localities in which at least one transfer had occurred. Not surprisingly, therefore, analysis of the TDR concept largely has been theoretical and speculative rather than based on broad practical experience.

Transferable development rights programs have been established to promote varied goals. Programs have been adopted to protect historic buildings and landmarks (New York, Chicago, Denver), environmentally sensitive forests and wetlands (New Jersey Pinelands, Collier County, Florida), and to encourage retention of low-income housing. The Montgomery County, Maryland, program to protect agricultural land, cited as one of the most successful programs, is most similar to the TDR uses which have been discussed in Virginia.

This memorandum addresses issues which appear to be relevant to a consideration of state-enabling legislation designed to ensure that the interests of individual citizens and the public as a whole are protected, state policies promoted, and the local government not open to unnecessary liability by an ordinance which is legally infirm or suspect. The issues include constitutional and legal concerns, fundamental structural features of a program, and key impacts on the community.

Specifics as to how a TDR program would operate on a day-to-day basis are not included. Virginia Beach and its consultants - the firm of Rogers, Golden and Halpern (RGH) - have responded to these types of questions in the Virginia Beach context. The enclosed documents may be read for purposes of identifying some of these questions:

1. "Questions and Answers About Transferable Development Rights," prepared by RGH for the City of Virginia Beach

2. "Issues Arising Under 'Transferable Development Rights' Programs: A Report for the Transferable Development Rights Subcommittee of the Counties, Cities and Towns Committee of the House of Delegates of the Commonwealth of Virginia (July 21, 1989)