Sustainability Spotlight: Purchase of Development Rights and Transfer of Development Rights

The NVCOG has developed two infographics to explain the concepts of Purchase of Development Rights (PDR) and Transfer of Development Rights (TDR). Municipalities may use these legal instruments to preserve open space and farmland in communities that may be facing development pressure. The infographics are intended to assist in explaining these concepts to a broader audience.

Both programs work by decoupling the physical land of a property from the right to develop that property. That right can either be transferred to an eligible area that is more appropriate to build, generally triggering an incentive like a density bonus (TDR), or the right can be terminated by paying the landowner a one-time fee in exchange for a legal restriction to not develop the property (PDR). Each method has some flexibility to accommodate the needs of the landowner and/or prospective developer – for instance, allowing farm-related buildings to be erected on a PDR property that otherwise cannot be developed.

PDR was used to protect a portion of Gustafson Farm in Watertown in 2020, through a partnership among the landowners, the Connecticut Department of Agriculture, the USDA Natural Resources Conservation Service, and the Connecticut Farmland Trust. As a result, 301 acres of this orchard and beef farm are legally protected from future development.

These programs may not be the right fit for every community. They require willing landowners, legal paperwork, many partners, and lots of time to execute. Other options for land preservation, such as deed restrictions or conservation easements, may be a better fit depending on the property. As Gustafson Farm demonstrates, however, a PDR can be a powerful option for land use planning.

Click the infographics below for a visual breakdown of how PDR and TDR can be applied in your community.