Credit Systems
Components of a Credit System
The TDC credit system is the administrative life blood of the TDC program. As with the TDC Conservation and Development Areas, the specific design choices are based very much on the program goals, the community, and the municipality’s capacity. However, there are several steps or questions common to the establishment of any TDC credit system.
How many credits are available for TDC Conservation Area landowners – Determining how many credits are available in the TDC Conservation Area, and how many are available for a given landowner in that area.
How many credits are required in the TDC Development Areas – Determining how many credits must be acquired by the developer operating in the TDC Development Area in order to receive a unit of bonus development, and what maximum limits may exist.
How credits are recognized (i.e., issued, validated, redeemed) – Determining the process by which TDC credits are actually issued to TDC Conservation Area landowners, validated for sale, conveyed, and redeemed for use in the TDC Development Area.
How credits and transactions are recorded by the municipality – Determining which facets of the credit’s potential and activity are recorded and how, including who currently holds credits, how credits are individually identified, which credits are available/validated/used, which have triggered title restrictions, and what credit opportunities are remaining.
What kind of agreement is necessary between landowners – Determining the acceptable forms of agreements for sale/conveyance, the conditions that must be set and when, the role of the municipality in the agreements, and what constitutes violations of the agreement/program.
