Santa Fe County planning staff presented an update on the county’s Transfer of Development Rights (TDR) program to the Planning Commission on April 17, describing how the voluntary program works, current pilot outcomes and next steps toward a TDR bank and pricing methodology.

Herbert Foster, a growth management team lead, summarized the TDR mechanics: owners of environmentally, culturally or agriculturally sensitive land can voluntarily sever (permanently relinquish) development rights on a parcel and receive certificates that can later be sold to developers who want higher density in designated receiving areas. Foster described the typical incentive structure used by the county: "Certificates represent foregoing building 1 house on a property; the buyer can, in many cases, build a density bonus elsewhere," he said.

Foster told commissioners that three private owners have participated in the sending side of the pilot, resulting in four properties and 11 certificates recorded or under agreement; four of those certificates have already been sold. The county itself is also participating: the Board of County Commissioners has authorized severing development rights on multiple county open‑space parcels as a pilot, and the county currently holds 28 TDR certificates in a preliminary bank. Those county‑held certificates are not yet on the market while staff and the Board prepare a pricing approach.

On pricing and administration, Foster said the county had signed a consultant to develop a methodology for setting and updating certificate prices annually and that procurement and legal review will inform how the county sells certificates from the bank. He noted that one certificate has been structured to provide a five‑to‑one residential density bonus (one certificate enabling five single‑family units) and that multifamily/rental calculations differ under the ordinance.

Commissioners asked technical questions about permanence, water rights and how the certificates interact with normal subdivision review. Foster reiterated that severing development rights is permanent, that a sending parcel can be assigned areas retained for limited future development, and that TDRs do not change zone designations; rather, certificates are used at the time of final plat recordation in an eligible receiving zone. The county legal team and water‑rights staff continue to refine how water rights are treated in TDR agreements.

Foster said the county will continue to develop the TDR bank, finalize purchase/sale procedures and publish a marketplace on the county website for buyers and sellers; staff encouraged developers and owners seeking to participate to contact growth management for qualification reports and site visits.

The presentation was informational; no action or vote on the TDR program was taken at the meeting.