What is a CR?

A Conservation Restriction (CR) provides a way to protect your land from development in perpetuity.  The exact terms of a CR may vary depending upon the interest and needs of an individual landowner.  In some cases the CR may stipulate that the land be kept "forever wild" (i.e. protected not only from building but from any alteration whatsoever).  More commonly, a CR prevents building on the land, but allows for recreational trails, agricultural uses such as growing crops, pasturing livestock and maple sugaring, and for the harvesting of wood or timber under a forest management plan.

It is important to note that a CR, in order to be enforceable over the long term, must be held by a government body or by a non-profit organization such as the Franklin Land Trust (FLT).  It must also be approved by the state and by the town.  A CR does not affect your ownership of the land, only the uses to which it may be put.  Protected land may be bought and sold like any other real estate, but the CR, of course, survives the sale.

Along with the reassurance that a CR can provide that your land will never be converted to a non-conservation use, a CR may afford certain financial benefits to a landowner. Placing a CR on your land is likely to lower its appraised value and, therefore, can be a powerful tool when planning your estate.  In addition, since a CR is likely to reduce your land’s assessed value, it may also serve to lower your property taxes.  In the case of a donation of a CR to a qualified organization, such as FLT, the difference between your land’s value before and after the gift of the CR may qualify as a charitable tax deduction.  Deductions may not exceed 50% of your adjusted gross income in any year, but they may be carried forward for up to 15 additional years from the year of the donation of the CR until the full deduction is used.  It is important that landowners consult their tax or financial advisors to determine the extent to which they may benefit from such a CR donation.

How do you go about placing a CR on your land?  FLT can guide interested landowners through the process.  Where a landowner is offering to gift a CR to the Land Trust, FLT will help you to draft the CR based upon your needs and concerns for your land, seek the necessary state and local approvals, obtain the required appraisal documenting your gift, and process all necessary legal documents.  Although there is no charge for this service, FLT encourages landowners to make a voluntary, tax deductible donation of $5,000 plus $25 per acre to FLT in support of their CR.

To explore whether a Conservation Restriction or Agricultural Preservation Restriction is right for you, contact Rich Hubbard at 413-625-9151 ext. 101.