Credit Systems

Recording and Tracking

It is essential for the success of a TDC program for the municipality to have a clear, on-going picture of credit activity. In general terms, this would include what credits are available on which parcels, credits that have been severed but not redeemed, credits that have been redeemed, and bonus development that has occurred because of which credits.

To facilitate this, many U.S.  programs use credit certificates that provide each credit a serial number so its movement through a program can be tracked. The TDC Conservation Area landowner would hold the certificate once his or her credits are established and provide that certificate to the TDC Development Area landowner when they sell the credits. The municipality has a role in authenticating certificates when they are created and when they are sold. This gives the municipality an opportunity to track transactions. It is up to the municipality to decide how it will record this activity (e.g., spreadsheet, database, customized software). All data collected will need to be consistent with any requirements listed in the ALSA and its Regulations.

Depending on the program a new credit owner may or may not apply the credit to a development right away. If the program requires that only original credit owners and developers may own credits,  the related TDC Development Area  should also be recorded at the time of transfer. If a program allows third-party brokers to hold credits without immediately using them, then at the time of the credit redemption the relevant development area should be recorded as well as the associated bonus that was received.

For proper information tracking, the municipality should require at least the following features be tracked by program participants:

Issuance of Credits – This information relates largely to the TDC Conservation Area and would include information such as: which parcels are eligible for credits; which parcels / landowners have received credits; which TDC Development Area are they associated with; how many credits have been transferred; how many credits remain.

Transfer or Conveyance of Credits– This information relates largely to the credit sales information and would include information such as: who has sold credits; who were the credits sold to; what were the sale prices; what were the conditions of sale and have they been met.

Conservation activity – This information relates largely to the title restriction activity and would include information such as: which parcels are now subject to title restriction; what title restriction was used; who holds any conservation easements; what is the monitoring plan or protocol; what monitoring activity has taken place.

Use or Redemption of Credits – This information relates largely to the TDC Development Area and would include information such as: who currently holds redeemable credits; which TDC Development Areas are they applicable to.

Expiry or Revocation of Credits– This information would only be applicable if the TDC Bylaw has stated these types of limitations on credits and would include information such as: which credits have been revoked; which credits have expired; what are the expiry dates of the credits currently available for redemption?