Land Use & Zoning

In New York, 'Transferable Development Rights' (TDRs) in the context of NYC landmark preservation allow a landmark building owner to:

ADemolish the landmark and build a new structure
BSell unused development rights (air rights) to an adjacent or nearby property so the landmark owner can receive value for development potential they cannot use due to landmark restrictions✓ Correct
CRequire the city to purchase the landmark building
DBuild additional floors on top of the landmark building

Explanation

NYC's TDR mechanism for landmark buildings (authorized by the Zoning Resolution) allows owners of landmarked buildings — which are often restricted from adding floors due to landmark designations — to sell their unused development rights (air rights) to nearby properties. This provides compensation to landmark owners for the restrictions imposed by landmark designation while incentivizing landmark preservation.

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