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Community benefits agreement

A community benefits agreement (CBA) in the United States is a contract signed by community groups and a real estate developer that requires the developer to provide specific amenities and/or mitigations to the local community or neighborhood. In exchange, the community groups agree to publicly support the project, or at least not oppose it. Often, negotiating a CBA relies heavily upon the formation of a multi-issue, broad based community coalition including community, environmental, faith-based and labor organizations.

In the United Kingdom, Section 106 agreements and in Canada, "Section 37" agreements similarly require certain benefits from developers, but differ from CBAs in that they are part of development agreements with governments, not communities. CBAs are generally private, contractual agreements, although they can in some instances be made part of a development agreement with a city.

Economic development projects are often heavily subsidized by taxpayer dollars, but there is usually no guarantee that a project's "ripple effects" will benefit current residents. Developments can cause inner-city gentrification, pushing out low-income residents as housing prices rise, or they may create only low-wage retail and service sector jobs. As a result, many metropolitan regions continue to experience problems related to poverty and housing, despite major investments in economic development.

Responding to these problems, the CBA model was created in the late 1990s as a way for the communities most impacted by economic development projects to participate in the planning process and seek to ensure that development benefits will accrue to existing communities. For developers, negotiating with community representatives can be an attractive way to gain community support and help move their projects forward. Participating in CBA negotiations can eliminate surprises in the development approvals process and allow developers to work with a unified coalition rather than having to engage community organizations one by one.

As local governments grappled with their responsibility to shape development and land use patterns, the community benefits movement emerged to challenge conventional thinking and offer a broader vision. Related to smart growth and environmental justice, the community benefits movement aims to ensure that the main purpose of economic development is to bring measurable, permanent improvements to the lives of affected residents, particularly those in low-income neighborhoods and communities of color. Organizations allied with the community benefits movement have pressured the public sector to play a more strategic role in land use planning and urban growth, and to leverage economic development subsidies toward the creation of good jobs, affordable housing, and neighborhood services that improve the quality of life for all residents.

The community benefits movement began in Los Angeles, with successful implementation at mixed-use projects at Hollywood and Highland, and Staples Center / LA Live. It has since spread rapidly to other cities, including Atlanta, Chicago, Denver, Milwaukee, Minneapolis, New Haven, New York City, Philadelphia, Pittsburgh, San Diego, San Francisco, San Jose, Seattle, Syracuse, Washington, D.C., and Wilmington. Leading organizations[non-primary source needed] include National Community Reinvestment Coalition, The Partnership for Working Families, Los Angeles Alliance for a New Economy (LAANE), Strategic Actions for a Just Economy (SAJE), SCOPE Los Angeles, and Pittsburgh UNITED.

CBA advocates contend that the community benefits approach improves the development process for the community, developers and local officials by creating an overall win-win-win scenario. Some of the principles and goals that CBA advocates seek to promote include:

At the heart of the community benefits strategy are community organizing and coalition building. Organizing and maintaining a coalition, facilitating compromise and crafting a shared agenda are essential to creating a successful CBA. Coalitions can include a variety of community groups, such as neighborhood groups, environmental organizations, good-government organizations, labor unions, and faith-based organizations. Coalitions are usually unincorporated, but member community groups may enter into an operating agreement to govern their relationship in the coalition. A model CBA coalition operating agreement has been created by the Public Law Center at Tulane University Law School.

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