Olney Coalition

preserving the quality of life in Olney, Maryland

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Transferrable Development Rights (TDRs)

In an effort to keep development out of the agricultural reserve, Montgomery County instigated a program of Transferrable Development Rights. Land located in the agricultural preserve (called the TDR sending area) was rezoned so that only one home could be built on every 25 acres (effectively keeping it agricultural); in return, the landowners received one TDR for every five acres. These TDRs could then be bought by developers to add density to their developments that were located in TDR-receiving areas.


Olney Coalition Meets with University of Maryland Professor Jim Cohen

The Olney Coalition met with Dr. Jim Cohen, a Professor in the Urban Studies & Planning Program at University of Maryland, on April 9th. The objectives of this meeting were to open a dialog with the University’s planning experts and to increase our understanding of the social equity issues associated with some land use programs.

In 2002, Dr. Cohen’s students analyzed Montgomery County’s TDR program and reported the results to the Planning Board and the County Council. The report describes how the selection process of receiving areas (such as Olney) did not take into account the already failing infrastructure and did not provide sufficient support to insure the necessary level of infrastructure improvements to maintain existing levels of public services such as schools, roads, public safety and recreation. In addition, the report indicates that other jurisdictions in the County with more political organization succeeded in reducing the number of receiving areas approved in their master plans. Potomac is given as an example. Click here for report. As a result, a disproportionate number of receiving areas were placed in Olney.

Dr. Cohen confirmed there is an issue of fairness in the distribution of TDRs. He encouraged us to ask County decision makers to justify why so many TDRs were placed in Olney versus other planning areas. We also discussed how important it is for County decision makers to provide adequate public facilities to ensure that growth can be sustained without eroding our quality of life or destroying our environment.

Dr. Cohen referred us to several resources (other documents and people) that may help us develop effective responses to these issues. Our dialog with him remains open and we expect to meet again shortly to explore opportunities to work with his students.


Suggested Reading:


Article: Montgomery's Line of Defense Against the Suburban Invasion
By Stephen C. Fehr Washington Post Staff Writers Tuesday, March 25, 1997; Page A01
An excellent article on the history of the agricultural reserve and issues facing its preservation.


Paper:
An Analysis of Social Equity Issues in the Montgomery County (MD) Transfer of Development Rights Program (Sept 2002) (pdf, 331K)
An Analysis of Social Equity Issues in the Montgomery County (MD) Transfer of Development Rights Program (Update-Dec 2002) (Word File, 1054 Kb)
Jim Cohen, Director of Graduate Studies Urban Studies and Planning Program, University of Maryland
Ilana Preuss, Graduate Student Urban Studies and Planning Program, University of Maryland

Excerpt:

Despite its national reputation, the Montgomery County TDR program is facing serious challenges. The county is running out of receiving areas, the price for TDRs is falling, and the program is facing opposition from residents of some receiving areas who are resisting increased densities from TDR application. In addition, as will be argued in this article, in actuality the program may not not “preserving” farmland in the long term.

In the Fall of 2000, a planner with the Maryland-National Capital Park and Planning Commission (M-NCPPC) approached one of the co-authors (xxxxxx) with a request for assistance in developing strategies for generating more demand for TDR use. The M-NCPPC request led the University of Maryland Urban Studies and Planning Program to make the county’s stagnant TDR market the subject for its Spring 2001 Community Planning Studio course. One of this paper’s authors (Cohen) was the instructor for the studio course, the other (Preuss) one of the students. At the beginning of the semester, the studio team decided they were not interested in merely helping M-NCPPC come up with ideas for increasing the demand for TDRs, but wanted to examine issues of program effectiveness and social equity as well. The Studio Team presented its findings and recommendations to the Montgomery County TDR Task Force at the culmination of the study in May 2001 in order to help the county improve the program.


Report: TDR Program Task Force Report (pdf, 5271K)
Excerpts from TDR Program Task Force Report (emphasis ours)

Introduction (from the report)
 In 1980, the Montgomery County Council adopted the Functional Master plan for the Preservation of Agricultural and Rural Open Space. The Master Plan identifies as a key element necessary to ensure the success of the TDR program: "the identification of receiving areas in area master plans." The success of the element is now in questions. The number of receiving areas has dwindled in proportion to the remaining untransferred TDRs and the number of receiving areas realistically likely to be developed using TDR density has become critically low.

 Master Plan Development
e. The Master Plans must strive to achieve a fair share distribution of TDRs to insure that environmental, community, and other impacts resulting from intensified use of TDRs are not borne disproportionately in a limited number of receiving areas.

University of Maryland Analysis Major Findings
 …The receiving area selection process [in the early 1980’s] did not take into account the already failing infrastructure of some these Planning Areas and did not provide sufficient support to insure the necessary level of service.
Jurisdictions with more political organization succeeded in reducing the number of receiving areas approved in the master planning process. These jurisdictions, such as the Potomac Planning Area, pressured the county Planning Board and developers to reduce the maximum number of developed units in given TDR zones.

Impacts of the TDR Program on Receiving Areas
…The proportion of total housing units developed with TDRs is extremely varied across developed areas. By combining data from Planning and Policy Areas, the Studio Team found that TDR-built units account for almost 17 percent of Olney’s housing units and 15 percent of Damascus units. Housing from the remaining county areas contain less than 3 percent TDR units. The highest concentration of TDRs is also found in Damascus and Olney, with 54 and 38 TDRs per square mile, respectively.

Areas for Further Study
…Infrastructure Capacity in Receiving Areas: The Studio Team encountered a lack of information on the capacity of the infrastructure in receiving sites to handle new growth. Current practices for determining capacity are not sufficient to establish the viability of an area for sustaining additional density.


Report: Plowing New Ground: Agricultural and Rural Open Space Preservation Program (2001)
MNCPPC website

 

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