Documente Academic
Documente Profesional
Documente Cultură
ON
APRIL 2007
TABLE OF CONTENTS
1.0 2.0 2.1 2.2 2.3 3.0 3.1 3.2 4.0 4.1 4.2 4.3 4.4 5.0 5.1 5.2 6.0 7.0 INTRODUCTION..................................................................................................................................1 MEANING..............................................................................................................................................1 SENDING AREAS...................................................................................................................................1 RECEIVING AREAS ...............................................................................................................................1 COMPONENTS .......................................................................................................................................2 GLOBAL EXPERIENCE......................................................................................................................3 MONTGOMERY COUNTY, MARYLAND,.................................................................................................3 THURSTON COUNTY, WASHINGTON .....................................................................................................3 TDR IN MUMBAI .................................................................................................................................5 INTRODUCTION.....................................................................................................................................5 RESERVATION TDR .............................................................................................................................5 SLUM TDR...........................................................................................................................................5 HISTORIC TDR.....................................................................................................................................6 TDR ZONES..........................................................................................................................................7 TDR USING GUIDELINES......................................................................................................................7 TDR NON RECEIVING ZONES ...............................................................................................................7 TAX IMPLICATIONS OF TDRS ........................................................................................................9 MAJOR HOLDERS OF TDR IN MUMBAI:- ..................................................................................10
1.0 INTRODUCTION
Transferable Development Right (TDR) certificates, in simple language are certificates issued by the local municipality It is in the interest of all communities to preserve their historical landmarks, environmentally sensitive areas and open spaces. These not only beautify the city but also provide the much needed breathing space within the concrete jungle. This is true of any metropolitan like New Delhi, Hong Kong, Singapore etc and is especially true of island cities of Tokyo, Mumbai, etc where paucity of land acts as a limiting factor towards the growth and development of the community.
2.0 MEANING
The concept of TDRs provides for providing financial compensation to property owners while imposing restrictions to control the growth and development. This approach involves severing the right to develop an area that is to be preserved and transferring those rights to another site where higher than normal density would be tolerated and desirable. The development right is independent of land ownership as the development right becomes a separate article of private property and can be shifted from one area to another and can have economic value Landowners in the sending zone are allocated a number of development credits which can be sold to developers and speculators; and in return for selling their development credits, the landowners in the sending zone agree to place a permanent conservation easement on his or her land. The purchaser, on the other hand, can apply them to develop at a higher density than otherwise allowed on property within the receiving zone. TDR can be an efficient tool in converting the proposed planned development of a city into a reality. The value of a TDR is the difference in the value of land from the receiving zone minus the value of land from the sending zone. E.g. For example, Lets say that the value of the land for agriculture is $2,000 per acre and the developer would pay $6,000 to buy the property for development, the value of the easement or development right would be $4,000. Thus, TDR makes a free exchange (buying and selling) of development rights possible without having to buy or sell physical land parcel. Transferable Development Rights (TDR) programs, thus, in simple language, are transferable /saleable developmental rights for a particular property. It refers to a method for protecting land by transferring the "rights to develop" from one area and giving them to another. The area earmarked within the city limits (or state limits) which is to be protected is known as the sending zone and the area earmarked for development is known as the receiving zone.
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TDR ordinances provide a solution with multiple benefits. The developers achieve greater profits from the higher level of development. The sending site owners are able to liquidate the development potential of their properties while still using these properties for nondevelopment and, in some cases, incomeproducing activities. And finally, the community itself is able to implement its preservation goals without relying exclusively on tax revenues and other traditional funding sources, which are often difficult to adopt.
2.3 COMPONENTS
There are four main elements of a TDR that must exist in all successful programs: A designated preservation zone (the sending area). A designated growth area (the receiving area). A pool of development rights those are legally severable from the land. A procedure by which development rights are transferred from one property to another.
Without these components, landowners will have trouble finding a buyer for their development rights. At the same time, the lack of a market for landowners who are mandated to sell their development rights to realize the economic value of their property could be grounds for legal action. Under a voluntary TDR program, the lack of a receiving area would result in development occurring in the sending area just as before and with little land being protected. As part of the comprehensive plan, a TDR program must provide incentive for the government to increase the building capacity within the receiving zones when TDRs are used. This extra capacity need to be approved only after the developer transfers the development rights they may own, or purchases those rights from landowners in the sending areas. It is recommended that receiving areas should provide for about 30 to 50 percent more building units that the actual number of transferable rights would allow. This creates a competitive market among landowners and developers It is important to note that receiving areas do not have to be contiguous to the sending area nor do they have to be in one large mass. However, wherever the receiving/sending areas are, the use of TDRs should be consistent with a community's comprehensive plan, future land-use map, zoning, and capital improvement program.
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County as the nations fifth most threatened agricultural area Keeping this in mind, the county initiated a farmland protection technique under the scheme Urban Growth Boundaries (UGB).Under this scheme, the zoning and the development allowed in a farmland was reduced from two dwelling units per acre to one dwelling unit per five acres. This zoning now stands at one dwelling unit per forty acres. According to a survey done in 1991, it was estimated that it would cost approx $11 million to protect the 13,000 acres of agricultural land. In order to protect the agricultural land in Nisqually Valley, the government initiated a Purchase of Developmental Rights (PDR) program. Under this scheme, landowners were given only one chance to apply for the program and by 1997, after spending approx $2.3 million to protect 940 acres of farmland, the program ceased t exist. To compliment the PDR program, a TDR program was initiated in 1995 which stretched beyond the limits of Nisqually Valley. Although the program was created in 1995, it was not properly promoted until the year 2000. Till 2001, only 15 landowners had signed up for the scheme and only about half a dozen had enquired about it. The reason given was low awareness and understanding of the program among the landowners
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4.2.1
EXAMPLE
The concept of Floor Area Ration used in U.S. is called Plot Ratio in India. Plot ratio in the Mumbai City is 1.33:1, i.e. 133 square meters of floor area can be built on a 100 square meter of plot area. When landowners surrender land in the sending area for roads, parks, etc, they receive TDRs at the rate of 1.33 square meters of floor area for each square meter of land offered. In the suburbs, as the plot ratio is 1:1, the landowners receive TDRs representing one square meter of floor area for each square foot of land dedicated for a qualifying improvement.
the Slum TDR Program, a developer is able to build an extra 150 square meters of floor area at a receiving area site. Thus, total area is that can be constructed becomes 250 sq. mtrs. In 2000, 2001 and 2002, it produced roughly 250,000 square meters of bonus floor area per year on receiving sites. This jumped to 600,000 square meters transferred in 2003.
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The receiving and non receiving zone is high lighted in the map below:-
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7.0 MAJOR HOLDERS OF TDR IN MUMBAI:The price of TDR in Mumbai has risen by more than 35% (from Rs. 1800 to 2500/- being quoted currently) since the Mumbai High Court Decision on TDR. Projects falling under SRA schemes are among the biggest generators of TDR in Mumbai. As a result, developers / companies like Akruti etc are in possession of large quantities of TDR. Some of the other major players are Vimal Shah and VideoconAtithi (20 lakh sq.ft) and Sumer Corporation (40 lakh sqft generated from slum rehabilitation scheme in Chandivali). The list of ongoing Akruti projects is depicted in the map below:-
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