Description The TDR process can be considered a tool for controlling urban sprawl by concentrating development. TDR is a legal mechanism offered in some local government jurisdictions as a form of development control.  TDR are also a way to avoid constitutional takings issues caused by rezoning areas that would otherwise eliminate a significant amount of value from the property. The procedure offers landowners financial incentives or bonuses for the conservation and maintenance of the environmental, heritage or agricultural values of their land. TDR is based on the concept that with land ownership comes the right of use of land, or land development. These land-based development rights can in some jurisdictions be used, unused, sold, or otherwise transferred by the owner of a parcel. Sending districts are commonly made up of areas with desirable traits that are at risk of being developed such as agricultural lands or wilderness areas, but may also be newly designated historic sites. Alternatively, parcels with buildings that do not use all of their available size have "excess" developable capacity that can be conveyed to other parcels, possibly adjoining the first parcels. Massachusetts Smart Growth/Smart Energy Toolkit "Transfer of Development Rights (TDR)" Receiving districts are typically are located  urban areas that are ripe for development. Receiving districts are generally areas more suited for higher density developments and sending districts are areas with environmental, heritage or agricultural values that the county, city or town wishes to preserve. TDR credit banks can be used to store development rights that have been purchased if there is not yet a receiving area development  identified. This mechanism is used when the time of the sale in the sending area is not concurrent with a development in the receiving area. It is also useful in communities that have the opportunity to purchase the rights from an area of high conservation interest but do not have a development  that can receive higher density at the time.  TDR credit banks should be operated by a third party organization that is empowered to negotiate the sale of development rights  such as a non-profit organization or an agency operating within the community. Massachusetts Executive Office of Energy and Environmental Affairs, "Transfer of Development Rights" Massachusetts Smart Growth/Smart Energy Toolkit Bylaw, 2005. (Feb 1, 2011)
Description The TDR process can be considered a tool for controlling urban sprawl by concentrating development. TDR is a legal mechanism offered in some local government jurisdictions as a form of development control. In the United States, TDR are also a way to avoid constitutional takings issues caused by rezoning areas that would otherwise eliminate a significant amount of value from the property. The procedure offers landowners financial incentives or bonuses for the conservation and maintenance of the environmental, heritage or agricultural values of their land. TDR is based on the concept that with land ownership comes the right of use of land, or land development. These land-based development rights can in some jurisdictions be used, unused, sold, or otherwise transferred by the owner of a parcel. Sending districts are commonly made up of areas with desirable traits that are at risk of being developed such as agricultural lands or wilderness areas, but may also be newly designated historic sites. Alternatively, parcels with buildings that do not use all of their available size have "excess" developable capacity that can be conveyed to other parcels, possibly adjoining the first parcels. Receiving districts are typically are located in urban areas that are ripe for development. Receiving districts are generally areas more suited for higher density developments and sending districts are areas with environmental, heritage or agricultural values that the county, city or town wishes to preserve. TDR credit banks can be used to store development rights that have been purchased , if a receiving area development project has not yet been identified. This mechanism is used when the time of the sale in the sending area is not concurrent with a development in the receiving area. It is also useful in communities that have the opportunity to purchase the rights from an area of high conservation interest but do not have a development project that can receive higher density at the time. In Massachusetts it is recommended that TDR credit banks be operated by a third party organization that is empowered to negotiate the sale of development rights , such as a non-profit organization or an agency operating within the community. 
A
In the United States,
D
Massachusetts Smart Growth/Smart Energy Toolkit "Transfer of Development Rights (TDR)"
A
in
R
if there is not yet
, if
A
project has not yet been
A
project
A
In Massachusetts it is recommended that
D
should
A
,
D
Massachusetts Executive Office of Energy and Environmental Affairs, "Transfer of Development Rights" Massachusetts Smart Growth/Smart Energy Toolkit Bylaw, 2005. (Feb 1, 2011)