Community Benefit Agreements (CBAs)
Description and History
A Community Benefit Agreement (CBA) is a binding contract between a developer and community representatives, committing the developer to fulfill specific obligations that benefit the local community. These agreements are crucial for ensuring that large-scale projects deliver tangible, targeted benefits to residents. CBAs often cover commitments such as local hiring, living wage policies, and training programs, but progressive CBAs are increasingly focusing on procurement—encouraging developers to prioritize local businesses and vendors, especially those owned by minorities, women, and other underrepresented groups.
CBAs originated as a tool for communities to advocate for equitable economic development, and they have gained traction since the early 2000s. One of the most notable early examples was the agreement for L.A. Live in Los Angeles, where the developer committed to local hiring and interest-free loans for nonprofit housing developers. This agreement set a precedent for communities to use CBAs to demand benefits beyond job creation, incorporating progressive procurement policies to foster local business growth.
CBAs, Progressive Procurement, and Community Wealth Building
CBAs are powerful tools for enabling communities to leverage development projects for equitable local investment. By setting local procurement goals and requirements, CBAs ensure developers prioritize socially responsible purchasing practices that support small businesses, minority- and women-owned enterprises (MWBEs), and other local vendors. Procurement commitments within CBAs promote economic inclusion and strengthen community economies, creating lasting benefits that extend beyond the immediate development.
More importantly, transparent, inclusive, and accessible CBA negotiations have the transformative potential to reshape the power dynamics in community and economic development processes. These agreements give community members—especially those most likely to be affected by a project but often excluded from conventional governing procedures—a voice in how the fruits of economic development are shared. Through a properly structured CBA process, vulnerable populations gain greater opportunities to participate in decision-making about the development of local community assets.
CBAs also mitigate displacement risks and create pathways to economic stability through targeted hiring and vendor commitments. For example, procurement goals that encourage developers to secure goods and services from local MWBEs not only strengthen small businesses but also ensure economic benefits remain within the community.
Examples of Progressive Procurement in CBAs
Oakland Army Base CBA: The City of Oakland negotiated a CBA as part of the redevelopment of the former army base, which included progressive procurement goals. The agreement set a requirement for 50% of construction contracts to go to local businesses, with priority given to MWBEs. This CBA also established local hiring standards and job training programs to ensure sustainable employment for Oakland residents.
ReBuild San Diego CBA: As part of San Diego’s airport expansion project, the ReBuild CBA included provisions that directed 30% of procurement to local, small, and disadvantaged businesses. It also mandated that contractors use green materials sourced from local suppliers whenever possible, underscoring a commitment to both economic and environmental sustainability within the community.
Challenges and Limitations
Conflicts with local policies may arise if CBA terms do not align with city regulations, causing tension between developers and community leaders. CBAs can also suffer from inadequate transparency if negotiations exclude genuine community input. Furthermore, CBAs that lack detailed, enforceable commitments can fail to deliver their intended benefits.
To overcome these obstacles, CBAs need clear governance structures and ongoing community oversight. Transparency and enforceability are essential to ensure developers uphold their commitments and adapt to community needs as projects evolve.
Taking it Forward
For CBAs to be effective, they require robust governance structures and mechanisms for enforcement. Establishing independent monitoring boards or community councils can provide the necessary oversight to hold developers accountable, especially for procurement goals. These bodies should represent diverse stakeholders, including small business owners, labor representatives, and local officials, to reflect a broad range of community interests.
Incorporating formal, legally binding commitments with specific timelines and measurable outcomes is critical to ensure accountability. Regular reporting on procurement progress, local hiring achievements, and other commitments helps maintain transparency and builds trust between the community and developers. This transparency not only ensures fair benefit distribution but also strengthens relationships, reducing the risk of conflict, opening up decision-making spaces, and ensuring the project aligns with community values over time.
By embedding progressive procurement goals within CBAs and establishing clear governance, communities can leverage these agreements to build wealth locally, foster economic inclusion, and create lasting, positive impacts.
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