Crossover Assets™
Investing in Environmental Assets and Biodiversity

Transferable Development Rights (TDRs)

Transferable Development Rights (“TDRs”) are a form of tradable easement whereby a landowner chooses to forfeit property development rights indefinitely in an effort to protect biodiversity-rich land through the employment of a conservation easement. Local governments utilize TDR programs as a land-use planning methodology to manage urban development by establishing a system through which development rights are transferred from lands designated for protection (referred to as “sending zones”) to lands designated for future growth (referred to as “receiving zones”). The method for quantifying development rights depends on the agendas set by the local governments in regards to preservation goals and community growth objectives, but typically the price at which a landowner can sell a TDR credit is based on the transfer ratio, the demand for new development, and the overall quality of the available land within the sending zones. To date, more than 140 TDR programs have been successfully implemented in 20 states. While the opportunities for entry into TDR markets are currently limited, Timbervest believes this market will continue to develop as a significant number of local governments are currently considering implementing these programs in an effort to regulate growth and preserve biodiversity-rich lands within their communities.

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