Earlier editions: 2026-09
Title 21 — BUILDING AND ENGINEERING
San Benito County Municipal Code Ch. 21.09 Transfer of Development Credits
San Benito County Municipal Code · 2026-10 edition · updated 2026-10-03 · San Benito County
Cite as: San Benito County Municipal Code Chapter 21.09 · Text as of 2026-10-03
§ 21.09.001 FINDINGS.¶
It is hereby found and determined as follows:
(A) Permanent loss of productive agricultural land. The county possesses significant prime agricultural lands. Such agricultural lands are a local, state and national resource, which should be preserved for future generations. Historically, agriculture has been, and remains today, the leading industry in the county. Agricultural land is being lost to development, and the continued viability of commercial agriculture in San Benito County is threatened by inappropriately placed development.
(B) Cost of growth in rural areas. When new development takes place in rural rather than urbanized areas, the cost to tax payers to provide services and infrastructure is magnified. Resources such as law enforcement and fire protection are spread over a larger geographic area. The cost of extending and maintaining roads and utilities increases. Development in rural areas affects ground water quality and increases the need to construct and manage new and separate wastewater disposal facilities.
(C) Continued growth. Population growth and development must address the issues of loss of agricultural resources, ability to maintain and improve roads, lack of timely response to police and fire emergencies, and groundwater quality.
(D) Steps must be taken to preserve San Benito County's rural character, open space, historic and scenic areas, to ensure growth in an orderly and deliberate pace, and to allow the county to delineate areas where new development should and should not occur. Otherwise, current five acre zoning of prime agricultural land will likely result in its conversion to large lot residential uses.
(Ord. 865, § 1 (part), 2010)
§ 21.09.002 PURPOSE.¶
(A) The TDC Principles and TDC Ordinance are designed to provide an added mechanism of development options while preserving the agricultural resource of the county.
(B) In the Land Use Element of San Benito County's General Plan, Policy 7 reads: It is the policy of the county to consider transfer of development credits (TDC) programs, land trusts, and purchase of development credits (PDC) programs to provide financial incentives to protect and preserve agricultural soil resources and to protect the integrity of important agricultural areas for future use.
(C) Actions under Policy 7 include;
(1) Explore identifying areas for potential TDC and/or DC programs.
(2) Investigate establishing a density bonus to developers that transfers development credits from prime agricultural lands to existing communities and residential areas.
(3) Encourage General Plan amendments that will increase population densities to include receiving areas.
(D) In the Conservation and Open Space Element of San Benito County's General Plan, Goal 5 is to protect and preserve the agricultural identity of the county.
(E) Goal 6 is to continue agriculture as an industry in the county and to preserve agricultural resources for future generations. The objectives listed under Goal 6 are:
(1) To encourage and protect agriculture as a viable industry in the county.
(2) To provide financial incentives to protect the most productive soils resources.
(3) To stabilize land values for persons interested in purchasing agricultural land while providing economic incentives to landowners to avoid conversion of row crop and orchard land.
(F) Policy 28. Maintain viable sizes for agriculture. It shall be the policy of the county to assure that units of land which are suitable for agricultural purposes are maintained.
(Ord. 865, § 1 (part), 2010)
§ 21.09.003 GENERAL PRINCIPLES.¶
(A) TDC's primary goal. The transferable development credit (TDC) program's primary goal is to preserve as much of the following land as possible for the various uses of the agricultural industry in the county, and for habitat, view corridors and open space:
(1) Agricultural Productive (AP), currently zoned one home per five acres, and
(2) Rural (R), currently zoned one home per five acres, and
(3) Agricultural Rangeland (AR), currently zoned one home per 40 acres.
(B) Voluntary. The TDC program must be voluntary.
(C) No gain or loss of existing rights.
(1) With exceptions to encourage affordable housing, and to encourage the preservation of the open space most highly valued by the community, the TDC program should result in no net increase or decrease in the maximum number of homes presently allowed within the county plus the two cities, nor should it deprive a family of their existing rights to build the presently allowed number of homes on their property. The goal of the TDC program is to encourage the property owners of AP, R and AR zoned land to transfer all or a portion of their presently allowed new homes to a parcel within a receiving area and thereby preserve an even greater portion of their property for open space and agricultural uses.
(2) However, homeowners may also develop their property as currently allowed without invoking the TDC ordinance, or its provisions.
(D) General plan amendment not required. In order to accomplish the goals of the TDC ordinance, a General Plan amendment or zone change is not required in order to increase density when utilizing TDCs.
(Ord. 865, § 1 (part), 2010)
§ 21.09.004 SENDING AREAS.¶
(A) AP, R and AR zoned land. Except for the designated receiving areas, all AP, R and AR zoned areas outside of the City of Hollisters General Plan planning area for non-agricultural land uses, and San Juan Bautista's adopted Sphere of Influence are hereby eligible to be designated "Sending Areas".
(B) Determine the number of on site buildable units. The owner(s) of a parcel proposing development on their parcel must first provide sufficient topographic and geologic evidence to the County Planning Department to allow it to "certify" the number of homes the owner may build on their parcel. The number of buildable units shall become that parcel's "Certified Buildable Rights". In order to encourage applicants to transfer their TDCs to a receiving area, an applicant in a sending area may request this determination prior to submitting a full development application. This determination by staff may be appealed to the County Planning Commission and then to the Board of Supervisors.
(C) Transferable development credits. "Transferable Development Credits (TDC's)" shall be determined as follows:
(1) Applicants desiring to establish their TDC rights shall be required to submit to the County Planning Department an assessors parcel map showing the acreage of their parcel, or a record of survey prepared by a registered civil engineer, and a map of the parcel prepared by a registered civil engineer displaying the topographic features of the property and a preliminary title report showing all easements. The source of the topographic information may be either the highest resolution USGS topographic map available or an aerial survey with more detailed topographic information.
(2) The applicant's registered civil engineer shall note on said map:
(a) The zoning of the parcel;
(b) The acreage within FEMA adopted 100 year flood plains;
(c) The acreage with slopes greater than 30%;
(d) The acreage not within the Alquist Priolo fault hazard zone;
(e) The acreage of the parcel not within a 100 year flood plain and not within a slope
greater than 30% and not within the Alquist Priolo zone;
(f) The number of existing homes on the property;
(g) All existing acres with open space, agricultural, or other easements.
(3) The number of TDCs assigned each parcel shall be determined as follows:
(a) One full TDC shall be allocated for each five acres in an AP or R zone and one TDC shall be assigned for each 40 acres in an AR zone which are outside of an adopted 100 year flood plain outside areas with a slope greater than 30% and outside the Alquist Priolo zone. One TDC shall be deducted for each existing residence within these areas.
(b) Three additional bonus TDCs shall be assigned to each five acres in an AP or R zone and each 40 acres in an AP zone which has been designated by the Board of Supervisors as "Open Space and Agricultural Lands of Special Significance to the Community".
(c) Bonus TDCs on lands designated "Open Space and Agricultural Lands of Special Significance to the Community" may be sold only in return for an easement in perpetuity.
(4) No TDCs shall be allocated to the acres with an existing open space and/or agricultural easement.
(5) Round up to the next whole number if the result is 0.50 or more, otherwise round down.
(6) The county shall record a document certifying the parcel's total assigned transferable development credits. When TDC's are sold or added to the parcel, a document shall be prepared by the county and recorded to that effect. A form prepared by the Planning Department used to certify a parcel's total assigned transferable development credits, and a form used to document the deletion or addition of TDC credits associated with a specific parcel shall be documents subject to recordation by the County Clerk Recorder as authorized by the County of San Benito, a general law county. An owner of real property shall be ultimately responsible for ensuring that the TDC's recorded against their parcel are correct and accurate and shall notify the County Planning Director, in writing, within 30 days if the recorded TDC's of the owner's property are incorrect or need amendment.
(7) The number of TDC's assigned to a parcel at any given time shall be that parcel's "Certified TDC Rights".
(8) TDCs may be purchased by any individual, partnership, corporation or organization and held for resale.
(9) Not less than 50% of TDCs shall be purchased or otherwise obtained from lands designed "Open Space and Agricultural Lands of Special Significance to the Community".
(Ord. 865, § 1 (part), 2010)
§ 21.09.005 RECEIVING AREAS.¶
Receiving areas can be designated within the county's existing RU, RR, RT, Urban and Area of Special Studies as identified in the county's General Plan where they will minimize the negative impact on achieving the stated goals of the TDC program. Those lands designated for non-agricultural land uses on the City of Hollister General Plan Land Use Plan shall be excluded from receiving areas unless there is a joint approval by the San Benito County Board of Supervisors and City of Hollister City Council of the receiving area(s).
(Ord. 865, § 1 (part), 2010)
§ 21.09.006 MIX OF USES AND DENSITIES.¶
A wide mix of uses and densities should be encouraged in the receiving areas.
(Ord. 865, § 1 (part), 2010)
§ 21.09.007 REQUIREMENTS TO REPORT THE SALE OF TDC'S.¶
The sale of all TDCs shall be reported to the county within 30 days of the sale by any seller and any buyer of TDCs, on a form approved by the Planning Department. The parcel(s) from which the TDCs have been purchased shall be clearly identified. That parcel's "Certified TDC Rights" and the TDCs purchased and the number of TDCs remaining on the parcel shall be stated. The price paid for the TDCs purchased, including all forms of compensation, shall be disclosed to facilitate establishing a market price and to provide the information to base the price of the bonus TDCs assigned to the receiving area. If the TDC consisted of a gift, in whole or in part, that fact shall be disclosed. The new owner of the TDCs shall be stated. When the new owner of the TDCs assigns the TDCs to a new parcel, the new parcel shall be identified and the parcel's current "Certified TDC Rights" and added TDC rights shall be shown. The County Planning Department shall "certify" the changed "Certified TDC Rights" of each parcel.
(Ord. 865, § 1 (part), 2010)
§ 21.09.008 OPEN SPACE AND AGRICULTURAL EASEMENT.¶
Any open space and agricultural easement on a remainder parcel shall restrict the use of the property in perpetuity to only open space and agricultural uses as presently defined in the county zoning code.
(Ord. 865, § 1 (part), 2010)
§ 21.09.009 DESIGNATION OF "OPEN SPACE AND AGRICULTURAL LANDS OF SPECIAL SIGNIFICANCE…¶
A list of approximately 9,000 acres which have the highest open space and agricultural potential (as identified by the TDC Committee) of the remaining unpreserved lands or which could "fill in" blocks of land previously preserved, ("Open Space and Agricultural Lands of Special Significance to the Community") should be developed and adopted by the Board of Supervisors. A committee should be appointed each year to recommend additions and deletions to maintain a minimum of 9,000 acres on this list. The "Open Space and Agricultural Lands of Special Significance to the Community" shall be given preference in considering use of TDCs.
(Ord. 865, § 1 (part), 2010)
§ 21.09.010 PUBLIC PURCHASE OF TDC'S AND LAND.¶
The Board may create an Agricultural and Open Space Conservation Agency or request that all sellers and buyers of TDCs report the sale or purchase of a TDC to an existing agency. Until such an agency is created or selected by the Board of Supervisors, all reports required by this chapter shall be provided to the Planning Department of San Benito County.
(Ord. 865, § 1 (part), 2010)
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