Section 7-701. Transfer of development rights; definitions; conditions; procedures

1. As used in this section:
    a. "Development rights" shall mean the  rights  permitted  to  a  lot,
  parcel,  or  area of land under a zoning law respecting permissible use,
  area,  density,  bulk  or  height  of  improvements  executed   thereon.
  Development  rights  may  be calculated and allocated in accordance with
  such factors as area, floor area, floor  area  ratios,  density,  height
  limitations,  or  any  other  criteria  that will effectively quantify a
  value for the development right in a reasonable and uniform manner  that
  will carry out the objectives of this section.
    b. "Receiving district" shall mean one or more designated districts or
  areas  of  land  to  which development rights generated from one or more
  sending districts may be transferred and in which increased  development
  is permitted to occur by reason of such transfer.
    c.  "Sending  district" shall mean one or more designated districts or
  areas of land in which development rights are designated for use in  one
  or more receiving districts.
    d.  "Transfer  of  development rights" shall mean the process by which
  development rights are transferred from one lot, parcel, or area of land
  in any sending district to another lot, parcel, or area of land  in  one
  or more receiving districts.
    2.  In  addition  to  existing  powers  and authorities to regulate by
  planning or zoning, including authorization to provide for  transfer  of
  development  rights  pursuant to other enabling law, a board of trustees
  is hereby empowered  to  provide  for  transfer  of  development  rights
  subject   to  the  conditions  hereinafter  set  forth  and  such  other
  conditions  as  a  village  board  of  trustees  deems   necessary   and
  appropriate  that  are consistent with the purposes of this section. The
  purpose of providing for transfer of  development  rights  shall  be  to
  protect  the natural, scenic or agricultural qualities of open lands, to
  enhance sites and areas of  special  character  or  special  historical,
  cultural,  aesthetic  or  economic  interest  or value and to enable and
  encourage flexibility of  design  and  careful  management  of  land  in
  recognition  of  land  as  a  basic  and  valuable natural resource. The
  conditions hereinabove referred to are as follows:
    a. That the transfer  of  development  rights,  and  the  sending  and
  receiving   districts,   shall  be  established  in  accordance  with  a
  comprehensive master plan within the meaning of section  7-722  of  this
  article.  The sending district from which transfer of development rights
  may  be  authorized  shall  consist  of  natural,  scenic, recreational,
  agricultural or open land or  sites  of  special  historical,  cultural,
  aesthetic  or  economic  values  sought to be protected. Every receiving
  district, to which transfer of  development  rights  may  be  authorized
  shall  have  been  found  by the board of trustees, after evaluating the
  effects of potential increased development which is possible  under  the
  transfer of development rights provisions to contain adequate resources,
  environmental   quality   and   public  facilities,  including  adequate
  transportation, water supply, waste disposal and  fire  protection,  and
  that  there will be no significant environmentally damaging consequences
  and such  increased  development  is  compatible  with  the  development
  otherwise permitted by the village and by the federal, state, and county
  agencies  having  jurisdiction to approve permissible development within
  the district.  A generic environmental impact statement pursuant to  the
  provisions  of article eight of the environmental conservation law shall
  be prepared by the village for the receiving district  before  any  such
  district,  or  any  sending  district, is designated, and such statement
  shall be amended from time to time by the village, if there are material
  changes in circumstances.    Where  a  transfer  of  development  rights

  affects  districts  in  two  or  more  school, special assessment or tax
  districts, it may not unreasonably transfer the tax burden  between  the
  taxpayers  of  such  districts. The receiving and sending districts need
  not be coterminous with zoning districts.
    b.  That sending and receiving districts be designated and mapped with
  specificity and the procedure for  transfer  of  development  rights  be
  specified.  Notwithstanding  any other provision of law to the contrary,
  environmental  quality  review  pursuant  to  article   eight   of   the
  environmental  conservation  law  for any action in a receiving district
  that utilizes development rights shall only require information specific
  to the project and site where the action will occur and shall be limited
  to review of the environmental  impacts  of  the  action,  if  any,  not
  adequately reviewed in the generic environmental impact statement.
    c.    That  the  burden upon land within a sending district from which
  development rights have been  transferred  shall  be  documented  by  an
  instrument  duly  executed  by the grantor in the form of a conservation
  easement, as defined  in  title  three  of  article  forty-nine  of  the
  environmental  conservation  law,  which  burden upon such land shall be
  enforceable by the appropriate village in addition to any  other  person
  or entity granted enforcement rights by the terms of the instrument. All
  provisions  of law applicable to such conservation easements pursuant to
  such title shall apply with respect to conservation easements hereunder,
  except that the board of trustees may adopt standards pertaining to  the
  duration  of  such easements that are more stringent than such standards
  promulgated by the department of environmental conservation pursuant  to
  such  title.  Upon the designation of any sending district, the board of
  trustees shall adopt regulations establishing uniform minimum  standards
  for  instruments  creating  such  easements  within  the  district.  Any
  development right which has been transferred  by  conservation  easement
  shall  be evidenced by a certificate of development right which shall be
  issued by the village to the transferee in a form suitable for recording
  in the registry of deeds for the county where the receiving district  is
  situated  in  the  manner  of  other  conveyances  of  interests in land
  affecting its title.
    d. That within one year after a development right is transferred,  the
  assessed  valuation  placed on the affected properties for real property
  tax purposes shall be adjusted to reflect the  transfer.  A  development
  right  which  is  transferred  shall be deemed to be an interest in real
  property and the rights evidenced thereby shall inure to the benefit  of
  the transferee, and his heirs, successors and assigns.
    e.  That development rights shall be transferred reflecting the normal
  market in land, incuding sales between owners of property in sending and
  receiving districts, a village may establish a development  rights  bank
  or  such  other  account in which development rights may be retained and
  sold in the best interest of the village.  Villages shall be  authorized
  to  accept  for  deposit  within  the bank gifts, donations, bequests or
  other development rights.  All  receipts  and  proceeds  from  sales  of
  development  rights  sold by the village shall be deposited in a special
  municipal account to be applied against expenditures necessitated by the
  municipal development rights program.
    f. That prior to designation of sending  or  receiving  disticts,  the
  legislative body of the village shall evaluate the impact of transfer of
  development  rights  upon  the  potential development of low or moderate
  income housing  lost  in  sending  districts  and  gained  in  receiving
  districts and shall find either there is approximate equivalence between
  potential  low  and  moderate housing units lost in the sending district
  and gained in the receiving districts or that the village  has  or  will
  take  reasonable  action  to compensate for any negative impact upon the

  availability or potential development of low or moderate income  housing
  caused by the transfer of development rights.
    3.  The board of trustees adopting or amending procedures for transfer
  of  development  rights  pursuant  to  this  section  shall  follow  the
  procedure for adopting and amending a local law including all provisions
  for notice applicable for changes or amendments to a zoning ordinance or
  local law.
    4.  Nothing  in  this  section  shall  be  construed to invalidate any
  provision for transfer of development  rights  heretofore  or  hereafter
  adopted by any local legislative body.