Landowners who wish to protect their land so that its special,
scenic, historic, and natural features remain intact for future
generations, can use various tools to restrict the type, amount and
location of any future development. These techniques are all
private and
voluntary,
and provide more permanent ways to protect land than is possible
using traditional governmental regulations such as zoning. DLC can
work with you to determine the best conservation tools to help you
achieve your land conservation goals.
Conservation Easement
A conservation
easement is a voluntary legal agreement between a landowner and a
land conservation organization, like DLC, or public agency that is
permanently binding on the land, no matter who owns it.
Conservation easements restrict the use and development of a
property in such a way as to protect specific conservation
resources. The landowner retains all rights to own, sell, lease and
use the land according to the provisions of the easement. Many
easements allow limited future development to occur.
DLC is responsible
for monitoring protected properties to ensure that the landowner is
in compliance with the easement. If there is a violation, DLC will
make every effort to work with the landowner to attempt to resolve
it, but can, if necessary, take legal action to correct it. In
order to ensure that DLC has the financial capability to monitor and
enforce the easement, DLC requests an endowment gift from the
landowner that will be held in a restricted fund.
If the easement is
restrictive enough so that the property is diminished in value, this
reduction in value may qualify as a tax-deductible charitable
contribution for federal and state income tax purposes. TAX BENEFITS
Alternatively, landowners such as farmers can be paid for a
conservation easement in connection with a purchase of development
rights program.
FARMLAND PROTECTION
Conservation
easements are a widely used and highly recommended tool for
protecting open space and farmland. They conserve land while at the
same time keeping it in private ownership and on the local tax
roles.
Land Donations
Landowners can
consider an outright gift of land to DLC through our Trade Lands
Program. If the land has unique resource values or is appropriate
for public recreational use, DLC will place a conservation easement
on it and resell it. If the land does not have any significant
conservation value (e.g. commercial property) then DLC will resell
the land unrestricted. Proceeds from a sale are used to further
DLC’s conservation mission. An outright gift of land often provides
the greatest tax benefit for a landowner. TRADE LANDS
Purchase of Development Rights
One of the most
common ways of protecting farmland and open space is through a
purchase of development rights (PDR) program. In a PDR program, a
public agency or not-for-profit such as DLC, buys the development
rights from a
willing
landowner and a conservation easement is placed on the property.
PDR programs have proven to be a very effective tool for protecting
farmland. FARMLAND
PROTECTION
Bargain Sale
Bargain sales
involve the sale of land or a conservation easement to DLC at a
price less than fair market value. The seller may be entitled to an
income tax deduction for the difference between the sale price and
the fair market value as determined by a qualified appraiser.
Conservation Easement Escrow Agreement
Since a landowner’s
conservation easement benefits his neighbors by conserving land in
the vicinity, neighbors often find it advantageous to execute
easements jointly. A mechanism to coordinate this is the placement
of signed conservation easements in escrow with DLC or some other
third party, to be recorded as a group when the landowners determine
enough easements have been completed. This approach provides
reassurance that landowners will not be alone in filing their
conservation easements, thus ensuring protection of an entire
neighborhood area.
Deed Restrictions
Deed restrictions,
also known as restrictive covenants, are voluntary private
restrictions that limit the use and development of land and can
include the same restrictions as those set forth in a conservation
easement. However, these restrictions can only be enforced by the
parties to the contract and/or specific adjoining landowners who
directly benefit from the deed restrictions. They do not enjoy the
same legal status of a conservation easement and are not afforded
the same potential tax benefits. While deed restrictions may in
some circumstances be eliminated by the mutual consent of landowners
or through court action, it is extremely difficult to remove a
conservation easement. A combination of deed restrictions and a
conservation easement provides the strongest protection, because the
parties to the restrictions, the adjoining owners and DLC have
enforcement rights, and the conservation easement enjoys a special
legal status that makes it difficult to overturn in court.
Conservation Land Planning
Conservation land
planning is a consulting service DLC offers to conservation-minded
landowners who wish to balance limited future development of their
land with the conservation of its natural, scenic, forested or
agricultural resources. DLC can help landowners select and implement
appropriate conservation techniques and compatible development
concepts. DLC analyzes the property's resource values and real
estate potential. Based upon this analysis, the landowner can strike
an acceptable balance between conservation and development.
CONSERVATION EASEMENTS FAQ's
If you are
interested in learning more about your land conservation options,
please contact us at (845) 677-3002.
This information does not constitute legal or tax advice and DLC
strongly recommends that you discuss your land conservation options
with legal and tax professionals.
