Community Benefit Agreements (CBAs)

Description and History

A Community Benefit Agreement (CBA) is a contract between a developer and community representatives, committing the developer to fulfill specific obligations for a particular project. These agreements are the result of negotiations aimed at protecting community interests and ensuring that developments provide tangible benefits to local residents. Benefits can include monetary investments, such as funding for community centers or affordable housing, as well as non-monetary contributions like job training programs, hiring commitments, and legal assistance.

CBAs emerged as a tool for communities to ensure that large-scale developments provide direct benefits to local residents. The concept gained traction in the early 2000s as communities sought to leverage development projects to address local needs and mitigate potential negative impacts. A notable example is the CBA negotiated for the L.A. Live Sports and Entertainment Complex in Los Angeles, which provided community-based job training and interest-free loans to nonprofit housing developers.

Community Benefit Agreements, Just Use of Land and Property, and the Community Wealth Building Wedge

CBAs are a useful tool in advancing the just use of land and property in a Community Wealth Building approach to economic development. By securing commitments from developers to invest in local infrastructure, affordable housing, and job training, CBAs help ensure that the economic benefits of development are shared equitably. They help to minimize  displacement pressures from development by providing resources that enable residents to remain in their communities and benefit from local growth.

CBAs promote just use of land by requiring developers to consider the long-term needs of the community, rather than focusing solely on profit. This approach aligns development projects with community priorities, ensuring that land and resources are used in ways that benefit all residents, especially those who are most vulnerable to displacement and economic marginalization

Examples

  • Kingsbridge Armory CBA: In 2013, the Northwest Bronx Community and Clergy Coalition (NWBCCC) signed a CBA with the developers of the Kingsbridge National Ice Center in the Bronx. The agreement included commitments to set aside 51% of jobs for Bronx residents, pay living wages, and provide $1 million per year to local nonprofits.

  • Milwaukee: The agreement between the Milwaukee Bucks and the Alliance for Good Jobs established a $15-per-hour wage by 2023, included a labor peace agreement to ensure all employees have the option to unionize, and set a hiring goal requiring 50% of employees to live in designated Targeted Hiring Zones—areas with high unemployment or underemployment rates. Unlike the Nashville agreement, this Community Benefits Agreement (CBA) concentrates exclusively on job creation and wages, without provisions for affordable housing, workforce development, or childcare facilities.

  • West Harlem CBA: In 2009, Columbia University signed a $150 million CBA with the West Harlem Local Development Corporation (WHDC) as part of its Manhattanville campus expansion. The agreement included $76 million in a benefits fund, $20 million for an affordable housing fund, and $4 million for housing legal assistance.

Challenges and Limitations

Community benefit agreements can face challenges such as conflicts with local policies, where CBAs might conflict with local political and policy priorities, creating tension between community leaders and elected officials. Secretive negotiations, where CBAs are negotiated without genuine community involvement, can render them ineffective. Vague commitments can also pose a problem, as without clear, enforceable commitments, CBAs may fail to deliver promised benefits due to associated challenges. Additionally, ensuring ongoing community control and accountability can be challenging.

Taking it Forward

The negotiation process of Community Benefit Agreements (CBAs) empowers community members by involving them directly in development decisions. This participatory approach gives a voice to those most affected by development, ensuring that the needs and priorities of the broader community, particularly marginalized groups, are reflected in the final agreements.

To maximize the positive impact of CBAs, strong governance structures and formal mechanisms for oversight and enforcement are essential. These mechanisms ensure that the commitments made by developers are transparent, measurable, and enforceable over time. Without this structure, there is a risk that benefits may not materialize or be sustained.

Governance frameworks should include formal channels for community oversight, such as independent monitoring boards or advisory councils that represent diverse community stakeholders. These bodies can hold developers accountable, ensuring ongoing compliance with the terms of the agreement. Additionally, creating clear, legally binding commitments with established timelines and measurable outcomes is crucial for preventing vague or unenforceable promises that may undermine the agreement's effectiveness.

By fostering transparent collaboration between developers and communities and ensuring clear governance, CBAs can help to reduce displacement, promote social equity, and build trust. This accountability not only supports the equitable distribution of development benefits but also strengthens the relationship between communities and developers, reducing the likelihood of disputes and ensuring that projects align with community priorities in the long term.

Incorporating these governance and enforcement structures into the CBA process will uphold its integrity, empowering communities to benefit from sustainable, inclusive development.

Resources