Which statement below explains the term Transfer of Development Rights?

Transfer of Development Rights (TDR) is a voluntary, market-driven tool that allows landowners in “sending areas” (where preservation is desired, e.g., farmland) to sell development rights to developers in “receiving areas” (where higher density is allowed), promoting preservation while directing growth. Option B accurately describes this mechanism. The APA’sAICP Certification Exam Content Outline(2022), under “Plan and Policy Development,” defines TDR as “a voluntary program that transfers development rights from sending areas to receiving areas to encourage preservation and manage growth.” Option A incorrectly states that development is eliminated in sending areas—TDR preserves, not eliminates, development potential. Option C is too narrow, focusing only on limiting growth without mentioning the transfer mechanism. Option D (federal mandate with compensation) is incorrect, as TDR is typically local or state-driven and voluntary. TheCPC Study Manual(2024) states, “TDR is a market-driven tool allowing higher density in receiving areas in exchange for preservation in sending areas,” supporting option B.