American Institute of Certified Planners (AICP) Practice Exam

Why are Transfer Development Rights considered a smart growth strategy?

1. They focus on increasing the overall real estate market

2. They help preserve environmentally sensitive areas while directing growth

3. They create new zones for industrial development

4. They simplify building codes across jurisdictions

The correct answer is: They help preserve environmentally sensitive areas while directing growth

Transfer Development Rights (TDR) are considered a smart growth strategy primarily because they facilitate the preservation of environmentally sensitive areas while directing growth to more appropriate locations. This mechanism allows property owners in designated preservation areas to sell their development rights to property owners in areas designated for growth. As a result, areas that are critical for conservation, such as wetlands, forests, or agricultural lands, are protected from development pressures. Simultaneously, the areas designated for growth can accommodate increased density and development without infringing upon the natural or agricultural landscapes, promoting a more sustainable urban development pattern. This approach balances the needs for development and environmental stewardship, aligning with the principles of smart growth that advocate for efficient land use and reduced urban sprawl. Through TDR, communities can manage growth in a way that supports economic development while safeguarding valuable environmental resources.