Criteria for Land Preservation
The Rensselaer Land Trust is a nonprofit land trust organization (a 501c3 organization) formed in 1987 and chartered in March 1988. Its mission is to protect land and conserve natural resources of Rensselaer County including significant natural features, watersheds and sources of water, open space, natural habitats, and agricultural land.
The RLT uses a number of approaches to protect land. Primary among these tools is accepting donations of land and conservation easements. The RLT may use bargain sales or full purchases to protect land. Sometimes the RLT plays an intermediary role in protecting land for another entity such as a government body. The RLT also seeks to protect land by alerting landowners to unique features of their land, by introducing the public to Rensselaer County's natural treasures, and by educating public officials of the powers and tools available to them for land protection. These land protection tools are explained in further detail in the RLT's publications entitled A Landowner's Guide to Land Preservation Options and Questions and Answers on Conservation Easements. Both of these publications are available upon request.
In order to assign priority to lands that the RLT is considering for protection, its Board of Directors has approved a set of criteria to be used by the Acquisitions Committee to identify and target prospective properties. RLT will work with the landowner in formulating a plan to protect their properties.
If you would like to explore options for preserving your land and think it might fall within the RLT's criteria for preservation, contact us for a land evaluation. Written reports outlining a parcel's significant qualities and the reasons for accepting or declining it for preservation are prepared by the RLT's Acquisitions Committee and submitted to the Board of Directors and are available to the landowner. All discussions with the landowner remain confidential until a conservation easement is signed and recorded. Lands that do not meet preservation criteria can be donated to the RLT; proceeds from their subsequent resale will support the RLT's land preservation efforts.
The RLT's activities involve ongoing stewardship of donated lands and easements. Stewardship activities are funded by contributions from the general public, foundation, and donors of land and easements. Financial contributions for land management, maintenance, monitoring, and improvements are welcomed by the RLT and are tax-exempt as allowed by law.
The following qualities of significance are used by the Rensselaer-Taconic Land Conservancy to evaluate lands for preservation:
Natural, relatively undisturbed areas such as woodlands; wetlands; meadows; farmland fields; or publicly accessible areas such as parks, neighborhood green spaces, community gardens, nature preserves, arboreta, or development setasides.
Scenic and Aesthetic
Appealing view onto property from prominent location, recreational area, road, or waterway. Viewshed from property encompassing body of water, valley, mountains, or extended tract of agricultural land. Property containing natural features with aesthetic appeal, e.g. waterfalls, ravines.
Property currently in productive agricultural or forestry use or has such potential. Property has high quality agricultural soils present in size and configuration useful for agricultural purposes.
Property containing structures of historic, cultural, or architectural significance or containing archaeological sites of important former activity.
- Geological - Property containing unique landforms or valuable minerological features.
- Hydrological - Property containing wetlands, shoreline, aquifer, spring, stream, river, pond, lake, waterfall, floodplain, marsh, bog, fen, or other hydrological resource of significance.
- Forest/Meadow - Property containing mature forest or characteristic succession growth woods or meadow.
- Habitat - Property containing important ecological habitat for plant, animal, or insect life. Property providing a corridor or migratory function for wildlife. Property containing rare, threatened, or endangered species or community types.
Property being used or has the potential to be used for recreational, educational, or scientific purposes.
Property of sufficient size so that its features are likely to be sustained even if adjacent properties are developed.
Property located adjacent to other preserved or likely-to-be preserved tracts of land. Property located in an area targeted for preservation by the RLT. Property whose preservation would set an important precedent or serve as a model for conservation development, subdivision design, or a community not currently being served by the RLT. Property buffering agricultural lands, wetlands, wildlife habitats, woodlands, or other sensitive areas. Property that is one of few remaining preservable parcels in a locality.
Land Preservation Options
Acquisition of Land by the RLT
Two options are available to a landowner if transfer of land to the Rensselaer Land Trust is desired. These involve the transfer of title, which can take place immediately or in the future.
- The RLT can take full title to land in any of the following ways:
- Donation, including gift or bequest. The RLT is a tax-exempt organization, and therefore donations and bequests are deductible as allowed by law. A donation may be spread out over time, for example a portion each year for as many as three consecutive years.
- Purchase at less than market value, also called "bargain sale." In this instance, the difference between the sale price and an independently determined appraised value of the property may be tax deductible.
- Purchase at market value. Land acquired by The RLT may be held permanently or may instead be transferred to another qualified conservation organization, to a governmental entity, or to an individual.
- The RLT can acquire land with "less than full title," while the former owner or another party retains certain specified legal rights to the property. Examples of land acquired with less than full title include a former owner or other party retaining water, timber, and/or mineral rights; specified access to the property; lifetime use of land; right of reversion (i.e., return of title to previous owner if terms of donation are not met). The previous owner may set deed restrictions on how the land is to be used in the future by the RLT.
Conservation Easements to the RLT, the preferred method
A different and equally important method of land preservation involves a landowner granting a conservation easement to the RLT. A conservation easement is an agreement to preserve land in perpetuity by limiting the activities that can occur on the property. Although filed like a deed, an easement does not transfer land ownership, but rather spells out a landowner's commitment to protect permanently the existing character of the property. The RLT will work with a landowner to prepare an easement that meets the landowner's needs and interests, while also fulfilling the RLT's conservation objectives. For example, the landowner might retain the right to limited subdivision or building construction or to manage forests, graze animals, plant crops, or permit public access to the property. The RLT assumes responsibility to monitor and enforce compliance with the conditions of an easement.
For further information about easements, please request the RLT's publications: Model Conservation Easement, and State Law on Conservation Easements.
Questions and Answers on Conservation Easements
Sample conservation easements are available from the Rensselaer Land Trust upon request.
- What is a conservation easement?
A conservation easement is a voluntary agreement to preserve land in perpetuity. Although filed with the deed, it does not transfer land ownership, but rather spells out a landowner's commitments to protect the existing character of his property. It is a flexible document and may be written to protect land in accordance with the landowner's wishes.
- If I give a conservation easement, do I still own and control my own property?
Yes. Only the specific use rights that you choose to donate are removed from your property. You can still own, build upon, sell, lease, mortgage, farm, or otherwise use your property consistent with the terms of the conservation easement.
- Does a conservation easement require me to allow public access to my land?
No. The conservation easement does not give the public any rights to your land unless you decide to include such rights in your easement.
- To whom is a conservation easement given?
A conservation easement is enforced by the organization or public body to which it is donated, by court action if necessary. Some easements name another entity as a back-up enforcer in case the original donee organization is unable or unwilling to ensure compliance with the easement. If the original donee organization ceases to exist, the easement is transferred to a similar entity which has the power to enforce it. The organization which holds the easement is responsible monitoring it on a regular basis to assure that the current landowner is complying with the terms of the easement.
- How is a Conservation Easement enforced?
RLT is required by the LTA Standards and Practices and IRS requirements to legally defend the conservation easements that it holds. Some easements name another entity as a back-up enforcer in case the original donee organization is unable or unwilling to ensure compliance with the easement. If the original donee organization ceases to exist, the easement is transferred to a similar entity which has powers to enforce it. The organization which holds the easement is responsible for monitoring it on a regular basis to assure that the current landowner is complying with the terms of the easement.
- What is the difference between a conservation easement and a "deed restriction"?
A deed restriction (also called a "restrictive covenant running with the land") is similar to a conservation easement, but there are some significant differences. Conservation easements, established under Article 49, Title 3 of the Environmental Conservation Law and Section 247 of the General Municipal Law, enjoy a special legal status. While deed restrictions may in some circumstances be easily eliminated by the mutual consent of landowners or court action, it is much more difficult to remove a conservation easement.
Under Section 345 of the Real Property Law, deed restrictions expire after 30 years unless that are recorded, whereas conservation easements are valid in perpetuity. Also, deed restrictions may only be enforced by adjoining landowners who directly benefit from them, while conservation easements can be enforced by entities which do not own adjoining land and do not necessarily derive an economic benefit from them. To assure maximum effectiveness, a deed restriction and a conservation easement may be used jointly, since enforcement by neighboring landowners may be advantageous but is only possible through deed restrictions.
- Can I donate a conservation easement and still develop my land?
Yes. A conservation easement can be used to control the number, location, and designs of buildings, thus assuring a that a quality development plan is maintained in perpetuity. Used in this manner, an easement may be able to enhance the value of each lot created.
- Can a conservation easement assure the protection of open space set aside in a "cluster development"?
Yes. One of the biggest concerns that towns have in approving cluster developments is that the land set aside as "open space" today may be developed in the future. Requiring a cluster developer to place a highly restrictive conservation easement on land set aside as open space is the most secure way to protect it from development permanently. It is also a tool that can be used to place the protected open space in the private hands of one or more large estates or farms, rather than in a possibly unwieldy homeowner's association.
Conservation easements can also be used in connection with private roads. Many towns are unwilling to approve private or town roads built to minimum specifications because of the concern that as an area develops, the road system will require upgrading at the town's expense. If towns require perpetual conservation easements limiting the total number of units that can be served by such roads, they can approve these roads without needing to worry about future over-development. The alternative is that eventually the developer will build full-scale suburban roads, resulting in a "cookie cutter" development that will totally destroy the existing open space.
- Will conservation easements reduce my property taxes?
Maybe. Tax assessments are made by local assessors based on the fair market value of property. In fact, much rural land is actually underassessed relative to developed land, in recognition of the fact that undeveloped land does not demand municipal services and that raising the assessments of undeveloped land will tend to place development pressure upon ready being assessed at less than fair market value. Logically, a highly restrictive easement that reduces a property's market value should be reflected in a lower assessment, but this decision falls within the discretion of the local assessor.
Much land under easement already receives special tax treatment through either the Agricultural Districts Law (Section 25AA of the Agriculture and Markets Law) or the Forest Tax Law (Section 480-a of the Real Property Tax Law). A conservation easement would have little impact on land enrolled in these programs, since assessors are free to use their discretion regarding easements, while the agriculture and forestry exemptions are mandatory.
- For additional information, see our easement tax credit discussion (see menu Landowner Information on our homepage).
- Are there other tax advantages in donating conservation easements?
Yes. The principal advantage is the charitable deduction from state and federal income taxes. A taxpayer may deduct as a charitable donation the difference in value between the land before an easement is donated (unrestricted value) and after it is donated (restricted value). If the easement is highly restrictive, this could amount to a large tax deduction. In order to qualify for the deduction, the land involved must meet certain IRS criteria to establish public benefit, such as scenic enjoyment by the general public , preservation of natural ecosystems or historic sites, or public education or recreation. Under the Alternative Minimum Tax provisions of the Tax Reform Act of 1986, there is a strong possibility that a deduction could be limited to an owner's "basis" (acquisition cost) in the land rather than the full fair market value of the easement. Only a careful review with personal tax advisors will reveal whether or not this will be a problem for individual landowners. Easements can also result in significant estate tax savings as well.
- Won't conservation easements limit the availability of needed housing?
No. Good planning dictates that new housing should be concentrated in those areas best able to service it with roads, water, and sewer facilities (infrastructure), and employment and shopping opportunities. Conservation organizations do not accept easements on land that should more appropriately be developed for housing. In those areas of the County where large-scale development is appropriate, conservation easements will only be accepted in connection with open space set aside as part of planned cluster developments or to preserve scenic or ecologically sensitive areas such as wetlands, stream corridors, and riverbanks, steep hillsides, etc. Most conservation easements are placed on land in sparsely populated rural areas where good planning requires the preservation of open space and the retention of land in large tracts to keep agriculture a viable industry. A conservation easement strategy goes hand-in-hand with capital improvements to infrastructure to concentrate development in those areas best able to service it. In this way, an adequate supply of housing, at high enough densities to be affordable, can be created.
- Don't conservation easements erode the tax base?
Generally, conservation easements have little or no impact on the real property tax base, particularly in the Hudson Valley. Easements may, in some instances,, actually help stabilize and lower tax rates. One advantage of using conservation easements is that land under easement remains in private ownership and on the tax rolls, unlike publicly owned land.
In developed communities, open land represents a negligible proportion of the tax base. Even if a conservation easement were to result in a slight tax break for the landowner, the impact on a tax base comprised mostly of residential and commercial would be imperceptible. In rural communities, most land coming under conservation easement already enjoys property tax benefits under either the Agricultural Districts Law or the Forest Tax Law (see question #9), and the conservation easement adds no further tax reduction. In any area, a small reduction in the taxable valuation of eased property would be more than offset by enhanced taxable value of the surrounding properties. It is common knowledge that property surrounding parks and preserves commands premium prices.
Finally, Conservation easements provide important public benefits, not only in the open space amenity they provide, but also fiscally. Keeping haphazard development out of rural areas slows the growth in the property tax rate. It has been documented that increased residential growth always brings higher taxes, since demand for municipal services increases faster than the tax base. Limiting the growth and channeling it toward existing population centers, which can be accomplished using conservation easements, is the best way to stabilize the tax rate. Providing local property tax relief would therefore create an incentive for landowners to place conservation easements on their land and would, far from eroding the tax base, help to keep local property taxes down.
Questions and Answers on Conservation Easements comes from a handout produced by the Dutchess Land Conservancy and is reproduced with their permission.