Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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CONTENTS: |
To permit townships, counties, and combinations of certain
political subdivisions to establish transfer of development rights programs |
·
No
direct fiscal effect on the state.
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LOCAL
GOVERNMENT |
FY 2007 |
FY 2008 |
FUTURE YEARS |
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Counties |
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Revenues |
- 0 - |
- 0 - |
- 0 - |
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Expenditures |
Potential increase in
administrative costs |
Potential increase in
administrative costs |
Potential increase in
administrative costs |
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Other Political
Subdivisions |
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Revenues |
- 0 - |
- 0 - |
- 0 - |
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Expenditures |
Potential increase in
administrative costs |
Potential increase in
administrative costs |
Potential increase in
administrative costs |
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Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
Permits
townships, counties, and combinations of political subdivisions to establish
Transfer of Development Rights (TDR) programs.
There will be increased administrative costs for the oversight of any
such programs by the political subdivisions involved. These administrative costs will depend on the complexity of the
TDR arrangement.
·
The
bill permits political subdivisions to create TDR banks. If these banks are created, political
subdivisions may elect to use general fund moneys to place into the bank for
future TDR purchases.
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Bill overview
The bill provides for
counties, townships, or combinations of political subdivisions to adopt
regulations permitting the transfer of development rights (TDR) programs within
their zoning codes, or in the area specified in the agreement when the TDR is
between a combination of political subdivisions. TDR programs permit a "development right" to be assigned
to property in an area designated as a "sending area." That development right can be transferred
for application and use to property in a designated "receiving
area." These TDRs are primarily
used for the preservation of agricultural areas and to control and condense
growth in particular areas. Any such
assignment and transfer of development rights can only occur at the election of
the property owner.
The bill also permits
political subdivisions creating a TDR program to establish a TDR bank managed
by an advisory board called the TDR bank advisory board. If a joint TDR is established, a TDR bank
must be created. The bank board can be
configured in whatever way the political subdivision chooses, or in the case of
a joint TDR, as designated in the joint agreement. Additionally, each political subdivision participating in a TDR
is permitted to establish, as a separate fund in its treasury, a TDR bank fund
that consists of all moneys received in connection with the program.
Fiscal effects
The bill is permissive. As such, there are no direct costs for any
political subdivision that does not elect to form a TDR. Those that do elect to enter into a TDR
program may experience increased administrative costs for the program. Such programs can be more complicated and
expensive to implement than traditional zoning. Local governments must oversee the program, monitor all deed
restrictions, and assist in, or prepare any necessary easement documents. The overall costs of implementing and
administering a TDR program will vary depending upon the amount of land
involved and the number of individuals seeking to buy or sell development
rights. Additionally, administration
costs will depend on the complexity and need for such documents as utility
service plans and development transfer plan elements of a master plan, real
estate market analysis, and capital improvement plans. Local governments may also experience costs
for purchasing any development rights in instances where the rights are not
purchased by developers.
Examples from other states
Several states currently
either mandate or permit political subdivisions to enter into TDR
programs. The state of Maryland
mandated a TDR program. Various
estimates in this legislation indicated that it could cost as much as $10,000
annually to implement a county TDR program, or as little as $500 annually to
administer a township TDR program. New
Jersey also authorizes political subdivisions to engage in TDR programs. The state established a State Transfer of
Development Rights Bank, which was authorized to provide grants up to $40,000
to local governments for the purpose of preparing
the documents required for TDRs. These
grants require a 50% local match.
LSC fiscal staff: Terry Steele, Budget Analyst