American Institute of Certified Planners (AICP) Practice Exam

What does Purchase of Development Rights (PDR) involve?

1. A landowner forfeiting their property to the government

2. A developer purchasing land rights from a land trust

3. A landowner selling development rights to a governmental agency

4. A governmental agency purchasing land and reselling it

The correct answer is: A landowner selling development rights to a governmental agency

Purchase of Development Rights (PDR) is a valuable tool in land use planning and conservation efforts. This process involves a landowner selling their development rights to a governmental agency or other eligible entity. By doing so, the landowner receives financial compensation while simultaneously agreeing to restrict the future development of their property. This mechanism helps preserve open spaces, farmland, and other important resources by preventing urban sprawl and maintaining the character of the landscape. The arrangement is beneficial for both parties: the landowner gains immediate financial assistance while the community or governmental agency secures the land's sustainable use for future generations. This approach aligns with broader goals of land conservation and responsible development, making it a preferred strategy among planners seeking to balance growth and environmental protection. Focusing on the incorrect options, they each misrepresent the nature of PDR. For instance, forfeiting property to the government conveys an end of ownership rather than a transaction involving rights. Similarly, the notion of a developer buying rights from a land trust or a government agency purchasing land to resell it also diverges from the fundamental purpose and operation of PDR, which distinctly emphasizes the preservation of land use rather than ownership changes or development activities.