King County TDRs: Understanding Transfer of Development Rights

Living in Enumclaw, we often come across properties that have restrictions due to agricultural zoning, open space designations, conservation easements, and protected lands due to the sale of development rights. 

 

This blog post will explore King County’s Transfer of Development Rights (TDR) program for rural landowners. It's a valuable program to understand and we will explain how TDRs work and why they are worth knowing about - especially if you own or are considering buying or own acreage!

 

What is the TDR Program?

 

The Transfer of Development Rights is a voluntary and incentive based approach to preserve our rural lands and steer development away from areas like Enumclaw and divert that growth into urban areas. Instead of spreading out, the goal is to increase density in already heavily populated areas and protect our agricultural spaces. 

 

A landowner can opt in to sell their development rights and in doing so, these rights turn into a tradable commodity that can be bought and sold - just as land can be bought and sold. When a landowner chooses to sell some (or all of their development rights), the property is protected through a conservation easement. Generally speaking, a conservation easement is a record on the property title that permanently restricts some or all of future development. The land itself still remains in private ownership and most of the time, landowners will retain one development right in order to build a single-family residence. A conservation easement can act to reduce property taxes as well. 

 

Once a landowner decides to sell their development rights, typically a developer will purchase them if they are working on a project in an area eligible for increased density (called receiving sites). The purchased TDRs give developers the ability to build additional houses, lots, units, or floor area that exceed the base density allowed by zoning.

 

It’s a win/win for land owners and developers. Land owners retain ownership and use of their property, receive a large sum of money to use for property improvements or personal investments, and the land is protected from development forever. The goal of the program is to preserve forests, farms, open space, and the natural environment to maintain quality of life for future generations. With TDRs, developers can increase project unit counts, profits, and allow for “green” marketability. 

 

How many development rights do I have?

 

The zoning of a parcel and its size are used to calculate the number of development rights that are potentially available. For example, if your house is on a 20-acre lot in an area zoned RA-5 (one dwelling unit per 5 acres), you could potentially keep one development right and transfer 3 TDRs from your property. See this link to find a table on the King County Website that will help you estimate how many TDRs you may have available. 

 

How does the TDR program lower my property taxes?

 

When you apply to sell your development rights, the landowner grants a conservation easement on the property. Because a conservation easement limits some or all of future development, easements are one way to achieve property tax reductions through King County’s Public Benefit Rating System (also known as the Open Space Program). There are requirements for enrollment, but generally speaking, if a property is eligible for the TDR program, it will also be eligible for the PBRS program, and vice versa. 

 

How do I enroll my property into the TDR Market?

The King County Transfer of Development Rights (TDR) program enrollment has 2 stages. First, King County reviews your application and documents to determine if your property is eligible. Second, if eligible, the county certifies your TDRs, making them available for transfer, and places a conservation easement on your property to prevent future development. This entire process typically takes 3-4 months. See this link for more information.

 

How much do TDRs go for?

 

Average price in the last 2 years, $24,745.44 per TDR. Rural TDR transactions occur between private individuals or organizations; they may also be conducted by King County.

 

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From 1998 to 2024, over 147,500 acres of Rural and Resource lands (more than 230 square miles) have been protected from development through King County’s TDR program, by relocating subdivisions for over 3,000 potential dwelling units out of the County’s rural landscape and into its urban areas. 

 

In essence, King County's Transfer of Development Rights (TDR) program is a strategic land-use tool designed to balance growth and preservation. It allows rural landowners to monetize their development potential while simultaneously safeguarding valuable agricultural and open spaces. By transferring development rights to urban areas, the program promotes denser, more sustainable development patterns, reducing sprawl and protecting the region's natural heritage.

 

For residents of Enumclaw and other rural communities, understanding the TDR program is very important, as it directly impacts land use, property values, and the preservation of the rural character we cherish. The program represents a proactive approach to managing growth, ensuring that King County's natural beauty and rural heritage are preserved for generations to come.