Boulder County Transferable Development Credits (TDC) Clearinghouse

TDC Buyer Frequently Asked Questions

	What are TDCs?
	What is included in the 6,000 square foot County-wide size threshold?
	When do I need to purchase TDCs?
	How many TDCs do I need to purchase?
	How much does a TDC cost?
	How do I buy TDCs?
	Do I have to list the price at which I will purchase TDCs?

For more information
on the TDC Clearinghouse
please contact:

Ruth Cornfeld Becker, LLC
1942 Broadway • Suite 314
Boulder, CO 80302
Phone: 303-554-6150
Fax: 720-304-0020

What are TDCs?

TDCs are Transferable Development Credits. Under regulations adopted by the Board of County Commissioners, houses above a certain threshold size (6,000 square feet) may only be constructed in unincorporated Boulder County if the landowner purchases TDCs, subject to certain exemptions, and if certain other requirements are satisfied. TDCs are measures of single family residential floor area. There is a sliding scale to determine the number of TDCs needed to build additional floor area. See chart below.

What is included in the 6,000 square foot County-wide size threshold?

The 6,000 square foot threshold is a measure of total residential floor area and includes garages, basements, and residential accessory structures, but does not include covered porches.

When do I need to purchase TDCs?

Subject to certain exemptions, if you are building a house above the County-wide size threshold of 6,000 square feet, you must purchase TDCs before your building permit will be issued. TDCS must be provided to the Boulder County Land Use Department before your building permit is issued. Land Use will conduct a building plan check and inform you of the exact number of TDCs you need to submit for your building permit.

How many TDCs do I need to purchase?

The chart, above, shows the general number of TDCs needed to construct different size homes. The exact number of TDCs you need will not be determined until your SPR is approved, your building permit is submitted, and your building plans have been checked by the Land Use Department.

How much does a TDC cost?

It depends on the market. You can purchase TDCs from any party who owns TDCs at a price you negotiate. Sellers of TDCs are required to report the sales price to the Clearinghouse and that information is publicly available, and will be regularly updated.

See the TDC Marketplace for market values.

How do I buy TDCs?

You may buy TDCs from a private party or you may purchase TDCs from the TDC Clearinghouse. The TDC Clearinghouse price for sale of TDCs is listed on the TDC Marketplace page of the website. If you wish to purchase TDCs from a private party, you may register your interest with the TDC Clearinghouse. Simply go to the Registration Form page for the downloadable registration form, complete and return by email, fax or mail to the TDC Clearinghouse. The TDC Clearinghouse will list the information you provide on its website and provide the information to interested sellers. You may also purchase TDCs directly from a private party without TDC Clearinghouse involvement, except for the issuance of new TDC Certificates by the TDC Clearinghouse, see below.

Do I have to list the price at which I will purchase TDCs?

No, if you would like to state your purchase price, that is fine. You may also ask potential sellers to contact you for that information, or provide a price range.

Can I buy a fraction of a TDC?

No. Fractional TDCs will not be recognized by Boulder County or the TDC Clearinghouse, and will not be valid for building permit issuance.

How do I know if TDCs are available for purchase?

Sellers of TDCs may register their TDCs with the TDC Clearinghouse. TDCs that have been registered for sale are listed at the TDC Marketplace. You may also contact parties on your own and ask them if they would like to sell TDCs. Generally, owners of vacant lands, or parcels with house sizes of less than 2,000 square feet are eligible to sell TDCs. See sellers FAQ's for more information.

How do I know if the TDCs are valid?

The TDC Seller needs to have an original TDC Certificate issued and signed by Boulder County. The TDC Clearinghouse keeps a list of issued TDCs and can provide you with that information. Be aware, however, that the TDC Clearinghouse will not know if the Seller has already sold TDCs, and it is essential that you receive the original TDC Certificate. TDC Certificates will not be issued until a conservation easement or restrictive covenant is recorded against the TDC sellers property. For more information on these requirements, see sellers FAQ's.

Can I buy TDCs before my SPR is approved?

Yes, you may buy TDCs from private sellers at any time. The County will only sell TDCs to parties with approved SPR's.

Do TDCs guarantee me the right to build the house of the size I desire?

No. You are not entitled to build a house above the threshold size, unless your design is approved through SPR, and your building permit is approved. The TDCs are a requirement to obtain a building permit, but do not provide you with any rights to build a larger house if your SPR is not approved.

What if I submit TDCs to the County and my building permit expires?

Once you submit TDCs with your building permit application, they are extinguished. You have no right to use them for any other project, regardless of whether your project is never completed.

What if I buy TDCs and then can't use them?

You may sell your TDCs to an interested party. You may register your TDCs for sale through the TDC Clearinghouse to publicize your listing. If you buy TDCs before your SPR is approved, you accept the risk that you may not be able to use the TDCs and may not be able to resell them, or resell them at the price you wanted.

How long does the process take to purchase TDCs?

If the Seller has TDC Certificates that have already been issued by the TDC Clearinghouse, the process can be very quick. The TDC Clearinghouse will issue new TDC Certificates to the buyer when the original TDC certificates are presented with signatures authorizing the transfer.

If the Seller does not yet have TDC Certificates, the Seller will need to follow the procedures outlined for issuance of TDCs. First, the Seller will need a TDC Determination from the Boulder County Land Use Department to determine the number of TDCs available from sellers property. Then, the Seller will need to provide title information and other documentation to the TDC Clearinghouse, and obtain subordinations of existing mortgages and deeds of trust, if any encumber the property. After all requirements are satisfied, TDC Certificates will be issued. See Seller FAQ's for more detail.

Can I use TDCs from mountain properties for construction of a house on the plains or vice versa?

Yes, there is one system that applies to all TDCs. TDCs from any part of Boulder County may be used in any other part of Boulder County.

Can I buy TDRs from the Boulder County TDR/PUD program to use as TDCs under the new program?

Generally no. There are limited circumstances in which TDRs, from the 1995 program can be converted to TDCs under the new program. Check with the TDC Clearinghouse for specific information on this issue.

My property has a specific numerical house size limitation under a land use approval, Do I need to purchase TDCs?

Check with the TDC Clearinghouse or the Land Use Department on your specific situation. Certain properties for which firm, numerical house sizes were approved prior to September 7, 2007 and for which conservation easements were recorded, are exempt from the TDC Regulations.

I submitted a complete building permit application prior to August 8, 2008. Do I need to purchase TDCs?

No. The TDC regulations only apply to building permits submitted or completed on or after August 8, 2008.

I submitted a complete SPR application on or before September 7, 2007. Do I need to purchase TDCs?

No. The TDC regulations do not apply to complete SPR applications received by the Land Use Department on or before September 7, 2007, so long as the SPR approval does not expire.

I have a vested right in my development project. Do I need to purchase TDCs?

Check with the TDC Clearinghouse or Land Use Department. You may be exempt from the TDC Regulations during your initial vesting period and your vesting period may be extended by three years under the TDC Regulations.

Am I subject to the TDC requirements for my lot which is located in a TDR/PUD Subdivision or an NCNUPUD?

Development in a TDR/PUD Subdivision receiving site, approved and recorded under Article 6-700 of the Boulder County Land Use Code, and development in an NCNUPUD Subdivision receiving area, approved and recorded under Article 6-500 of the Boulder County Land Use Code, is exempt from the Size Threshold up to a total residential floor area of 9,000 square feet per lot. Residential floor area greater than 9,000 square feet per lot will be subject to the requirement to purchase additional TDCs for the floor area greater than 9,000 square feet.

What are the risks of buying TDCs?

Your risk is limited if you buy TDCs after you have obtained an approved SPR and anticipate building in the near future. If you buy TDCs without an approved SPR, you may not be able to use them for your proposed development. The price of TDCs will be determined by the market, and markets experience swings and variability in pricing. There is no guarantee that your TDCs will be worth the same amount today as in the future. The price may go up or down, depending on numerous factors, that are impossible to predict. It is also possible that the TDC program will be modified or even terminated by the current or a future Board of County Commissioners. If that were to occur, TDCs could lose significant value or possibly all value.