What Are Density Transfer Credits?

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Traditional patterns of development can sometimes take us where we don’t want to go: under utilized commercial areas and/or town centers, while open space is taken for residential development.

What problems can this cause?

• Loss of natural space and all that it contains and represents for the community
• Inefficient transportation networks
• Lack of vibrancy in town centers
• Increased expense and difficulty in building higher density, affordable housing
• Higher infrastructure servicing costs
• Increase in land scarcity

• Very high land consumption rates /per unit of development

Density Transfer Credits work to solve these problems by concentrating development in higher density, growth centers, while preserving open space and conservation lands.
How is this done?  First, a few definitions:
Development Rights: The amount of development that could take place on a tract of land under zoning provisions.
Conservation/Preservation (a.k.a. Sending Areas): Areas identified as priorities for preservation or significant decreases in development potential.
Receiving Area: Areas that have potential to support more development than what is allowed by existing zoning and/or regulations.
Density Transfer Credit: The value of development potential moved from an area to be conserved to an area intended for additional development

The Concept:

1. The owner of a conservation parcel (sending area) sells development rights in exchange for a permanent conservation easement. Some or all of development rights are removed through a permanent deed restriction (conservation easement). The easement is purchased as a density credit.
2. The owner of “receiving” growth area parcel buys development rights to build at densities higher than allowed under base zoning. The zoning is amended to allow an optional additional increment of development which can be accessed only by using density credits.
3. The developer proposing to develop in "receiving" area pays additional fee for developing at a higher density. The town places those developer monies in a conservation/preservation fund and the fund is used to purchase conservation easements in areas to be protected as they become available.

This is not a new concept and has been used since the 1960’s! 

Potential Conservation Areas

• Prime Agricultural Lands
• Large Tracts of Unprotected Open Space
• Aquifer Protection Overlays
• Areas of Critical Environmental Concern
• Habitat for Rare and Endangered Species
• Watersheds to Sensitive Surface Waters
• Historic Districts or Structures
• Areas identified as Natural Service Areas

Potential Receiving Areas

• Village Centers and Town Centers
• Transportation Nodes / TOD
• Commercial or Industrial Districts
• Areas Served by Infrastructure
  • Centralized Water Supply
  • Centralized Sewer System
  • Public Transportation Routes
• Conventional and Cluster Residential Subdivisions

It’s got me wondering if there might be a place for their use in the MWV and, if so, where?

There is a lot more information available on Density Transfer Credits.  If you'd like to learn more, here are a few links to get you started:
 
Density Transfer Credits & TDR – A Workable Approach for New Hampshire

Multi-Density Zoning (New Hampshire)