Measure 49 allows Oregon counties to create a program to transfer development credits (TDC) from farm, forest, or coastal lands to areas with existing residential development. Some transfers are eligible for bonus credits which provides an additional financial incentive for landowners. Development rights may be transferred
A TDC program could give owners with Measure 49 authorizations an opportunity to receive payment for the development authorization while preserving their land for farming, forestry, and wildlife habitat. It could reduce development costs by allowing more dwellings in areas that have existing roads and utilities and are not prone to natural hazards.
How does the TDC Program work?
If a county decides to create a TDC program, then the governing body would adopt an ordinance to set criteria for eligible sending properties, receiving areas, and any bonus credits. Landowners would then be able to buy and sell transferable development credits using the county program.
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Sending Properties: The property that is giving up Measure 49 home site authorizations. To be eligible, sending properties must:
- Have unused Measure 49 dwelling approvals.
- Have legal access to the property.
- Be zoned for resource use or be in an area designated as high priority for protection.
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Receiving Areas: The area that is receiving the transferred Measure 49 development. The buyer of a TDC would be allowed to build a dwelling on a smaller parcel than the current zoning allows, but no less than two acres. For example, if a receiving area is currently zoned to require a minimum lot size of ten acres, then a TDC buyer could create a new lot two-acre lot and build a dwelling on it. In addition, receiving areas:
- May only be in existing Rural Residential exception zones or in substantially-developed pre-acknowledgment subdivisions in resource zones, based on a new type of reasons exception under Oregon Administrative Rule Chapter 660 Division 4.
- May consist of entire parcels or portions of parcels that meet the criteria in the TDC rules.
- Must be chosen to avoid development on lands with important natural or cultural resource values or vulnerable to natural hazards and to minimize impacts to nearby farm and forest operations.
- Should be attractive to developers and acceptable to the public.
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Bonus Credits: Counties may choose to award bonus credits to encourage Measure 49 owners to transfer development from highly- valued resource lands to areas zoned for residential development. Bonus credits may be awarded where property owners agree to protect the land through restrictive covenants or conservation easements. Possible conservation easement holders include land trusts, state agencies, soil and water conservation districts, counties, or similar public or not-for-profit conservation entities.
See the
Step-by-Step Guide for Transfers of Measure 49 Dwelling Authorizations and
Oregon Administrative Rules Chapter 660, Division 29.
Resources for Counties
DLCD can help counties adopt a TDC system by providing technical assistance, data, and mapping. The
Step-by-Step Guide explains county and DLCD roles in converting, transferring, using, and tracking TDCs. The county may designate receiving areas in the ordinance or may designate area as TDC applications are received. DLCD encourages counties to process development applications using TDCs through an administrative review process. A county may partner with other counties to allow credit transfers across county boundaries.
Opportunities for Conservation
When a conservation easement is required to allow a landowner to obtain bonus credits, a holder of that easement must be identified. DLCD encourages land trusts, soil and water conservation districts, and other state agencies to consider receiving and holding easements on Measure 49 properties, particularly larger properties of 20 acres or more. DLCD is willing to be a secondary holder of such easements. Income generated from the sale of TDCs could be used in a revolving fund to acquire conservation easements on additional Measure 49 properties.
Organizations that wish to help transfer development from valuable resource lands by acquiring conservation easements or purchasing TDCs can use the Measure 49 Analyzer to find potential properties.
Other Resources
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Measure 49 Analyzer: an online map for finding Measure 49 authorizations.
- Oregon Administrative Rules 660-029: Overall rules for transfers of development credits
- Oregon Administrative Rules
660-004-0023 and -0040(h): Goal exceptions not required for transfers of development credits
- Oregon Administrative Rules 660-027-0070(5): Transfer of development credits in urban or rural reserves.