The function of the State Transfer of Development Rights Bank is to support development potential transfers in municipalities that have adopted development transfer ordinances. Transfer of development rights banks function as a clearinghouse to connect credit sellers and purchasers and can be used as a buyer or seller of last resort when credit holders are otherwise unable to transfer them. As TDR is market-based, the actions of the bank must not impede private market transactions.

In New Jersey, municipalities that have established development transfer ordinances may use the State TDR Bank, establish their own transfer of development rights bank or use a county managed bank, if available, to facilitate transfers within their jurisdiction.

Located in, but not of, the State Agriculture Development Committee, the State TDR Bank functions under the direction of a 10-member board of directors. Under their guidance the major tasks of the State TDR Bank include:

  • The purchase, or provision of matching grants for the purchase, of 80 percent of the value of development potential from properties within designated TDR sending areas;
  • The provision of a financial guarantee with respect to any loan secured using development potential as collateral;
  • The provision of planning assistance grants to municipalities to help cover the cost of preparing the planning documents required to enact viable TDR ordinances;
  • Service as a development transfer bank for any municipality that has adopted a development transfer ordinance, or any county in which at least one municipality has adopted a development transfer ordinance; and
  • The establishment and maintenance of a Development Potential Transfer Registry to record all development potential transfers.

    Click here for the most recent meeting agenda

          NJ State TDR Bank Regulations (N.J.A.C. 2:77)

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