Official Site of The State of New Jersey
The HDC program is the the Highlands Council's Transfer of Development Rights (TDR) program. In a TDR program, property owners receive compensation for placing a conservation easement (deed restriction) on their property that limits future development. Property value is determined based on the lost development potential of the land and the resources present. This value is represented in the form of "development credits," in this case Highlands Development credit or HDCs. The HDC program address both preservation and landowner equity goals of the Highlands Water Protection and Planning Act and Highlands Regional Master Plan.
In a TDR program, preservation of land is achieved through permanent protection of natural, historic and/or other resrouces present, since the deed restriction remains with the property regardless of ownership.
There are three possible stages in the HDC program.
- Allocation of credits
- Certification of credits
- Purchase of credits
Participation in the HDC program is entirely voluntary and property owners may stop at any stage in the process.
HDCs may be allocated at any time, free of charge. Interested property owners should submit an HDC Allocation Application to the Highlands Council. The HDC Purchase Program operates only when funding is available. Landowners must apply for funding during an open application round to be considered.
The Tracking Sheet below contains information regarding all HDC allocation requests and any resulting transactions to-date. The Registry below summarizes all closed transactions.
- Allocations: Highlands Development Credit Tracking Sheet (pdf)
- Transactions (Easements Placed & HDCs Purchased): Highlands Development Credit (HDC) Registry
A Receiving Zone is an area within a municipality where growth is desired and where greater development density will be permitted over what is currently zoned. Highlands Receiving Zones can be anywhere in New Jersey, the program is voluntary, and grant funding is available to explore the possibility of establishing Receiving Zones.
Municipalities that establish voluntary Receiving Zones are eligible to receive enhanced planning grants up to $250,000 and will have the ability to charge impact fees up to $15,000 per unit. In addition, the New Jersey Economic Opportunity Act of 2013 includes special incentives and priority funding for developers that choose to locate projects in designated Highlands TDR Receiving Zones.
Municipalities or counties interested in establishing Receiving Zones, along with developers interested in acquiring HDCs, should contact the TDR Program Administrator at the Highlands Council by calling (908) 879-6737.