Overview of Community Benefit Agreements Sample Clauses

Overview of Community Benefit Agreements. A. What Are CBAs? CBAs generally are private agreements that detail the benefits a developer will provide in order to secure the cooperation, or at least forbearance, of community organizations regarding the developer’s application for permission to develop a particular project. Community opposition to a proposed development obviously may influence whether regulatory bodies will approve the project. Community opposition also may affect whether government agencies are willing to help fund the project. A developer’s ability to secure community acceptance of the project through a CBA accordingly may significantly affect the chances that the project will make it through various regulatory and funding hurdles. The benefits developers offer through a CBA vary with the particular development and community. Common promises include commitments to use local residents or businesses for the labor and material needed for the project; assurances that a certain number or percentage of housing units will be affordable to low- or moderate- income workers; agreements to pay living wages (or other benefits) to workers employed on the project; stipulations that the development be designed and constructed in an environmentally friendly fashion; and promises to correct existing environmental 5 See Been, supra note 3. problems. In return, coalitions of community groups promise the cooperation or forbearance necessary to allow the developer to get through the government approval processes as expeditiously as possible. In some cases, the developer initiates discussion about a CBA; in others, community groups approach the developer. At times, regulatory authorities or elected officials have suggested that the parties negotiate a CBA. In a few recent cases in New York City, local government officials have participated in the negotiations6 or signed the agreement as witnesses.7 The final agreement is usually a private agreement between the developer and a coalition of community groups or individual groups. In some cases, though, local governments incorporate the agreement (or its terms) into their own development agreements with the property owner.8
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