American Institute of Certified Planners (AICP) Practice Exam

What does the "Purchase of Development Rights" allow a city or agency to do?

1. Negotiate land prices with developers

2. Buy the right for a landowner to develop their property

3. Buy a portion of a landowner's property

4. Preserve natural features while allowing commercial development

The correct answer is: Buy the right for a landowner to develop their property

The option that states that the "Purchase of Development Rights" allows a city or agency to buy the right for a landowner to develop their property is the most accurate description of this concept. This mechanism is primarily intended to promote land conservation and restrict certain types of development while compensating landowners for the value of the development rights they are relinquishing. By purchasing these rights, a city or agency can effectively protect specific areas from development, ensuring that valuable agricultural, natural, or open spaces are preserved for future generations. This approach allows landowners to receive financial compensation while still retaining ownership of their land, but with certain limitations on how that land can be developed or used. In contrast, the other options describe activities or outcomes that do not accurately reflect the purpose of this mechanism. For instance, negotiating land prices with developers pertains more to typical real estate transactions rather than the specific action of purchasing development rights. Buying a portion of a landowner's property implies an acquisition of a physical piece of land, which is not what the Purchase of Development Rights entails. Similarly, the preservation of natural features while allowing commercial development does not align with the primary goal of the Purchase of Development Rights, which is to limit development altogether in designated areas.