Top 10 Legal Questions About Community Benefits Agreements

Question	Answer
1. What is a community benefits agreement (CBA)?	A community benefits agreement is a legally binding contract between a developer and a community group that outlines the benefits the community will receive in exchange for supporting the development project. It typically covers provisions for affordable housing, local hiring, and community investment.
2. Are community benefits agreements enforceable?	Yes, CBAs are enforceable as long as they are properly drafted and executed. They are often reviewed by legal professionals to ensure that they meet all legal requirements and can be enforced in court if necessary.
3. Can developers be compelled to enter into a community benefits agreement?	Developers cannot be forced to enter into a CBA, but they may choose to do so voluntarily in order to gain community support for their projects. In some cases, local governments may also incentivize or require developers to enter into CBAs as a condition of approval for their projects.
4. What are some common provisions in community benefits agreements?	Common provisions in CBAs include commitments to affordable housing, local hiring and job training programs, environmental sustainability measures, and funding for community improvement projects such as parks or schools.
5. How are community benefits agreements negotiated?	CBAs are typically negotiated through a process of community engagement, often involving local residents, community organizations, and elected officials. Legal counsel for both the developer and the community group may also be involved in the negotiation process to ensure that the agreement is legally sound.
6. Can community benefits agreements be modified after they are signed?	Once a CBA is signed, it can only be modified through mutual agreement between the parties involved. Any changes to the agreement would typically require formal legal documentation and approval by all parties.
7. What happens if a developer violates a community benefits agreement?	If a developer breaches a CBA, the community group may pursue legal action to enforce the terms of the agreement and seek damages for any harm caused by the breach. Enforcement mechanisms and remedies for CBA violations are typically outlined in the agreement itself.
8. Are community benefits agreements the same as impact benefit agreements?	Community benefits agreements and impact benefit agreements are similar in that they both involve negotiated benefits for a community as a result of a development project. However, impact benefit agreements are typically used in the context of resource development projects, such as mining or oil and gas, and may involve different types of benefits and considerations.
9. Do community benefits agreements have to be approved by local government?	CBAs do not necessarily have to be approved by local government, but in some jurisdictions, local government approval or oversight may be required for certain aspects of the agreement, such as affordable housing commitments or zoning changes related to the development project.
10. How can community groups ensure that a community benefits agreement meets their needs?	Community groups can ensure that a CBA meets their needs by engaging in a thorough and inclusive negotiation process, seeking legal counsel to review the agreement, and staying actively involved in monitoring and enforcing the provisions of the agreement once it is in effect.

 

What is a Community Benefits Agreement?

Community Benefits Agreements (CBAs) are powerful tools for creating positive change in communities. These agreements are negotiated between developers and community coalitions to ensure that local residents benefit from new development projects. CBAs can address a wide range of issues, including affordable housing, job creation, environmental protections, and more. They are becoming increasingly popular as a way to promote equitable development and ensure that all members of a community share in the benefits of growth.

Key Components a CBA

CBAs typically include a set of enforceable commitments that developers agree to as a condition of receiving community support for their projects. These commitments often take the form of legally binding contracts and may include provisions such as:

Priority Areas	Commitments
Affordable Housing	Set aside a percentage of units for affordable housing or contribute to a housing trust fund
Local Hiring	Agree to hire a certain percentage of workers from the local community
Environmental Protections	Implement measures to minimize the environmental impact of the project
Community Spaces	Provide funding or space for community facilities, such as parks or community centers

Case Study: The Los Angeles CBA Ordinance

In 2016, the city of Los Angeles passed an ordinance that requires developers seeking discretionary approvals for projects valued at $100 million or more to enter into a CBA with community organizations. This groundbreaking legislation has already resulted in several successful agreements that have brought tangible benefits to local residents. For example, the CBA for the massive Crossroads Hollywood development includes commitments to provide hundreds of units of affordable housing, create thousands of construction jobs, and make significant contributions to local schools and parks.

Community Benefits Agreements have the potential to be transformative tools for ensuring that development projects benefit the entire community. By including provisions for affordable housing, local hiring, environmental protections, and community spaces, CBAs can help create more equitable and sustainable neighborhoods. As cities and communities continue to grapple with the challenges of growth and development, CBAs are likely to become an increasingly important mechanism for promoting shared prosperity and social justice.

 

Community Benefits Agreement Contract

Below is a legal contract outlining the terms and conditions of a Community Benefits Agreement.

Parties	Agreement between the Community and Developer
Date	Effective as [Date]
Background	Whereas the Community and Developer wish to enter into a Community Benefits Agreement (CBA) to ensure that a development project provides tangible benefits to the surrounding community.
Definitions	“Community” refers to the residents, businesses, and organizations located in the vicinity of the development project. “Developer” refers to the party responsible for the development project. “CBA” refers to the Community Benefits Agreement outlined in this contract.
Terms and Conditions	1. The Developer agrees to engage in good faith negotiations with the Community to determine the specific benefits to be provided under the CBA. 2. The Community agrees to work cooperatively with the Developer to reach a mutually agreeable CBA that addresses the needs and concerns of the Community. 3. The Developer agrees to allocate a percentage of the development project budget towards the implementation of the CBA, as determined through negotiations with the Community. 4. The Community agrees to support the development project in exchange for the Developer`s commitment to provide tangible benefits as outlined in the CBA.
Dispute Resolution	In the event of any disputes arising in relation to the interpretation or implementation of this CBA, the parties agree to engage in mediation or arbitration as a first step towards resolving the dispute.
Applicable Law	This CBA shall be governed by and construed in accordance with the laws of the state in which the development project is located.
Signatures	_______________________ _______________________ Community Representative Developer Representative