What is a TED?

A Townhome Exemption Development, or TED is a legal process for dividing land to create ownership units. It is similar to condominium agreements, but also mandates that owners also possess the land underneath their dwelling unit. A TED is a residential development containing one or more dwelling units that are owned subject to an arrangement under which persons own their own dwelling units and hold separate title to the land beneath their dwelling units but under which they may jointly own the common area and facilities (in accordance with state law, MCA §§ 70-23-102 and 76-3-203).  

The TED process was created to divide land without requiring subdivision. This tool is intended to encourage urban infill on land that has already been investigated through a previous subdivision process. 

TEDs are for residential development only. Townhome Exemption Development (TED) projects are ten or fewer dwelling units in RT5.4, RT10, and all R districts (except R3), or 20 or fewer dwelling units in RT2.7, R3, and all RM, B, C, and M1R districts.  Developments that exceed these numbers are not permitted through the TED process. 

TED Project includes the following:

R Districts (except R3), and RT5.4 and RT10 DistrictsRT2.7 and R3 Districts 
All RM Districts
All B, C, Districts and M1R
One (1) to ten (10) total dwelling unitsAdministrative Approval, Comply with ZoningAdministrative Approval, Comply with Zoning
Eleven (11) to twenty (20) total dwelling unitsProhibited as TEDAdministrative Approval, Comply with Zoning
More than twenty (20) total dwelling unitsProhibited as TED
Property is not suitable for TED (20.40.180.B)Prohibited as TED