More Boulder Development Credit and TDC News

Some of the intentions of the new Transferable Development Credits (TDC) Program adopted by the Boulder county commissioners in August seem to be to provide an alternative to simple strict limits.

One fact of the TDC program is that it allows those people with property they own in Boulder county to realize some financial gain on the property without selling it. This could enhance the amount of undeveloped land in Boulder county, without the county having to purchase open space.

If you think you’re ready to explore the opportunities for residential real estate for a personal residence or  investment, I’d be very happy to have the opportunity to get you more information about the area market, price trends, or other questions you may have. Please call or email me, and I’ll get you what you need as quickly as I can.

If you have been following the progress of Boulder county’s new rules about development, you may have concluded that it’s a complicated process.

Here are some key points to the Transferable Development Credit program:

– It specifically deals with rights to develop additional residential floor area, and the basement IS included.

– The size threshold of 6000 square feet of attached and detached area includes principal residence and residential accessory structures such as an outbuilding used as an office, or a garage.  ( but it excludes covered porches, decks and patios.)

-You need to buy TDCs to exceed the 6000 ft threshold. The TDC program is the methodology to build above 6000 sq ft.

Conversely, people can sell TDCs by selling TDC certificates. If your property qualifies for the sale of a TDC certificate, the sale of one or more TDCs will permanently restrict that property size. The restriction is placed on the property through a conservation easement or covenant restriction.

Also, any mortgages on the target property would have to be subordinate to the TDC.

Requirements for a property if you think you want to sell a TDC: The property must be a legal building lot with legal access, must have water access, however other common restrictions are not affected by your ability to sell TDCs on a property you own.  You can explore more about the TDC program on the website for this program.

I think if we see a lot of people using the TDC program to sell TDCs on the open market, we will start noticing more land that will never become developed. I believe that is part of the plan the county had in mind.

This could also help create a new market for people that have considered a similar approach by doing a conservation easement. In a similar nature, the sale of a TDC will forever restrict the property from future improvement construction.

It could be an opportunity for all those involved. For now, the only monetary beneficiary seems to the Boulder county. However, there was certainly a need to launch the program with some  TDCs available for purchase.

I’m told that the Aspen / Pitkin County area has a similar program in place. Apparently this is a working model that was considered by Boulder County officials. Realtors and their clients in that area are supposedly treating TDCs (or the Pitkin County equivalent) as a negotiable commodity and marketing them for sale just as they do real estate.

Will we see listings in our local MLS system for TDCs? It’s probably too early to tell, but if you think you might want to explore that option, call or email me today, and we’ll get you the answers you need to get started.
-Zachary Epps, full-time professional Realtor® and EcoBroker®

Comments

One Response to “More Boulder Development Credit and TDC News”

  1. Barry on May 29th, 2011 1:39 pm

    Thanks to government unemployment benefits, nobody has to work.

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