The State Assembly has passed a bill (A-602) touted as providing more options for landowners within the Highlands preservation area. The bill would expand the transfer of development rights (“TDR”) program contained within the Highlands Act to permit any municipality in the state to accept a transfer of development rights in connection with preserved land in the Highlands. Under the current legislation, only a municipality in a county which is within the Highlands jurisdiction may accept TDRs (i.e., Morris, Sussex, Bergen, Hunterdon, Warren, Passaic and Somerset). The Assembly Environment and Solid Waste Committee issued a statement prior to the full Assembly vote on the bill which further notes that the existing legislation only allows a municipality to be eligible to receive a TDR if it has received plan endorsement from the State Planning Act. The bill would allow municipalities to be eligible if the Highlands Water Protection and Planning Council in conjunction with the State Planning Commission, has determined that a suitable project area has been designated as a receiving zone.
According to a report in the Star Ledger, one of the sponsors of the bill states that it will provide relief for landowners who lost the ability to sell or develop their land as a result of restrictions on development created by the Highlands Act:
“This will boost the Highlands Transfer Development Rights program so that landowners in the Highlands are fairly compensated for lost property value,” Assemblyman Erik Peterson (R-Hunterdon), a sponsor of the bill, said in a news release. “If we create a better market for development rights, we will increase the odds that landowners are made whole for preserving their land.”
The State Senate is also considering identical legislation (S-80) which has passed the Senate Environment and Energy Committee.

