Capital Improvement Program - A capital improvement program addresses the location and cost of all receiving area infrastructure and the method of cost-sharing if any portion of the cost is to be assessed against developers.
Credit Allocation – Allocation is the determination of the amount of credits a given property will have available for transfer. There are a number of ways to allocate credits. Credit allocation can be based on the number of lost development units or square footage, the gross area of the land characteristic or the monetary value of lost development potential.
Credit Enrollment – Enrollment is the creation of a marketable development credit. With enrollment, allocated credits are separated from the underlying parcel and made available for sale.
Credit Assignment – Assignment is the sale of a development credit. Credit assignment can occur numerous times prior to extinguishment. Once the initial assignment occurs, the property from which that credit originated becomes deed restricted.
Credit Extinguishment – Extinguishment occurs when a credit is used by a developer to gain added development density in a receiving area. Once a credit is extinguished it is no longer available for sale or further use.
Deed Restriction - A clause placed in the deed of a property that limits or restricts its permitted future use. Deed restrictions are often used to limit availability for development, decrease building density, restrict the type of structure that can be erected or prevent buildings from being used for a specific purpose.
Density – Density is the permitted number of dwelling units per gross area of land.
Density Bonus – Receiving area development density, above that which is normally permitted, available with TDR credit use.
Development Potential - the maximum number of dwelling units or square feet of nonresidential floor area that may be constructed on a specified lot or in a specified zone as determined by the municipal master plan and land use regulations in accordance with recognized environmental constraints.
Development Rights - Development rights represent a property’s unused development potential calculated as the difference between its existing use and its full development as permitted by existing laws. When enrolled in a TDR program, these rights become development credits that can be privately traded, purchased and sold by a local, county, regional or State TDR Bank or retained for investment. Although an initial valuation process may be necessary, credit values are ultimately market driven.
Development Transfer Plan Element – Element of the municipal master plan that serves as the basis for a development transfer ordinance. A development transfer plan element includes an estimate of the anticipated population and economic growth in the municipality; it identifies and describes all prospective sending and receiving zones; it analyzes how the anticipated population growth is to be accommodated within the municipality in general, and the receiving zone or zones in particular; it estimates existing and proposed infrastructure of the proposed receiving zone; it presents the procedure and method for issuing the instruments necessary to convey the development potential from the sending zone to the receiving zone; and it gives the explicit planning objectives and design standards to govern the review of applications for development in the receiving zone in order to facilitate their review by the approving authority.
Downzoning - A change in the zoning of a tract or parcel of land so as to reduce the intensity of usage. An example would be a change in zoning so as to reduce the number of units allowable per area unit.
Development Transfer - The conveyance of development potential between separate parcels. Development transfers are effectuated through the sale of development credits as authorized by a municipal development transfer ordinance.
Floor Area Ratio – Floor area ratio means the sum of the area of all floors of buildings or structures compared to the total area of the site.
Impact Fee – Payment imposed on a developer, as a condition of approval, to fund the developers' proportional share of the cost of providing new public improvements.
Infrastructure – Water and sewer lines, roads, transit infrastructure, schools and other facilities needed to support development.
Intermunicipal TDR - Development right transfer where development potential is moved between municipalities. To establish an intermunicipal TDR, both municipalities must agree to the transfer and approve separate TDR ordinances.
Intramunicipal TDR - Development right transfer where both sending and receiving areas are located within the same municipality.
Mandatory TDR - TDR program where sending area development potential is restricted and the sale of assigned development rights is established as the sole means to fully recover lost property value.
Mixed-Use Development – Mixed-use developments incorporate complementary residential, commercial, civic and business uses into a single parcel or development area.
Traditional Neighborhood Development (or neo-traditional development) – Neighborhood designed to accommodate a mix of residential and commercial uses within in a compact walkable area.
New Urbanism – Neighborhood design trend that incorporates neo-traditional concepts to promote community function and livability.
Real Estate Market Analysis – Analysis of the current and future land market to examine the relationship between the development rights anticipated to be generated in the sending zone and the likelihood of their utilization in the designated receiving zone. The real estate market analysis is a required planning document for establishment of TDR in New Jersey.
Receiving Area - Receiving areas are sites where increased development density could occur without threatening community character or sensitive environmental resources. These areas are often designated based on access to existing public water, sewer and transportation infrastructure. Landowners in this area may purchase development credits in exchange for development density in excess of existing zoning.
Sending Area – Sending areas are portions of the township that have been deemed incompatible with further development. To encourage preservation of these areas,TDR enables landowners to sell the development rights on their property for transfer to more appropriate areas. Sending areas often incorporate properties with agricultural, environmental or historic importance. They have also been designated to protect aquifer recharge areas, steep slopes, endangered species habitat and to limit waterfront overdevelopment.
Smart Growth – Planned development that is intended to help protect open space and farmland, revitalize existing communities, maintain affordable housing and provide a variety of transportation choices.
Sprawl – Low-density development pattern characterized by large lot sizes, rural land conversion, a separation of residential and commercial uses, automobile dependence and a lack of comprehensive land use planning.
Transfer of Development Rights Bank – TDR banks function as a clearinghouse to connect credit sellers and purchasers and can be used as a buyer or seller of last resort when credit holders are otherwise unable to transfer them. A bank can also provide financial guarantees for any loan secured using development credits as collateral.
Upzoning - A change in the zoning of a tract or parcel of land so as to intensify its usage. An example would be a change in zoning so as to increase the number of units allowable per area unit.
Utility Service Plan Element – Element of the municipal master plan that addresses the provision of necessary utility services. The utility service plan is a planning document required for TDR in New Jersey so that no development seeking to utilize development potential transfer is unreasonably delayed because utility services are not available.
Variance – A variance is granted permission to depart from the literal requirements of a zoning ordinance.
Voluntary TDR – TDR program where sending area property owners exact the development value of their land by either developing at currently zoned densities or selling allocated development rights. Receiving area landowners have the option of developing at current density or increasing that density with the purchase of development credits.
Zoning – Classification of land in a municipality into areas or districts in order to regulate building dimension, density, design, arrangement and use.