American Institute of Certified Planners (AICP) Practice Exam

What are Transfer Development Rights (TDR)?

1. Rights that allow a developer to build more densely in rural areas

2. Developers purchasing rights from landowners to develop in designated areas

3. Permits issued by the state for agricultural activities

4. Contracts that allow the transfer of property to government bodies

The correct answer is: Developers purchasing rights from landowners to develop in designated areas

Transfer Development Rights (TDR) are a tool used in land-use planning that enables landowners to sell their development rights to developers or other entities, allowing for the concentration of development in designated areas. This approach helps preserve the character of rural or environmentally sensitive areas while permitting increased density in urban areas where infrastructure and services are available. In essence, when landowners transfer their development rights, they effectively limit the density on their own property, ensuring that it remains undeveloped or less developed, while the buyer can increase development elsewhere within pre-established zones. The concept of TDR relies on regulating growth and development by creating "sending" and "receiving" zones. Sending zones are the areas where development rights are transferred from, typically less developed or more environmentally sensitive areas, while receiving zones are areas designated for more intense development. This strategy is beneficial for urban planners as it helps to manage growth, protect natural resources, and enhance local communities. Understanding TDR is crucial for planners who are tasked with balancing development pressures with the need to preserve land for future generations and maintain the integrity of the existing community.