July 7, 2010 - On July 6th, the Washington State Department of Commerce announced $1 million in competitive grant funding for incorporated cities and towns located in the Puget Sound Regional Counsel region. The grants are to help eligible communities establish or improve transfer of development rights (TDR) programs.

TDR programs establish a marketplace to fund conservation in areas that a community wishes to conserve (known as “sending areas”), while providing incentives for growth in areas where the community encourages growth (known as “receiving areas”). The TDR grant is intended to provide an incentive for cities and towns to establish “receiving areas.” All grant-funded activities must lead to a TDR transaction that conserves farms, forests, or other lands important to watershed health.

Examples of funded activities may include:

1. Completing an “upfront SEPA” analysis for an identified receiving area.
2. Subarea planning to identify receiving areas.
3. Codifying a TDR program.
4. Planning and designing capital facilities linked to development in a receiving area.
5. Analyzing a TDR component of a master plan.
6. Other relevant activities that will lead to a TDR transaction.

Grant applications are more competitive if:

1. The city or town is committed to conserving natural resource land and lands important to watershed health;
2. The city or town’s TDR plans are consistent with PSRC Vision 2040;
3. The grant application advances "strategic partnerships" (e.g. city working with developer or other stakeholders); and
4. The grant application is "innovative and sustainable."

Foster Pepper has in-depth experience working with municipal clients to develop all aspects of a successful TDR program. To discuss this issue or any other municipal or land use matter, give us a call.

If you have any questions, please contact Jeremy Eckert (206.447.6284) or any lawyer in Foster Pepper’s municipal or land use group.