Community Benefits Agreements (CBAs) are key to implementing equitable economic development projects through the Bipartisan Infrastructure Law. They are formal contracts between community groups, government, and developers. CBAs make sure that developers invest in communities in ways that promote quality jobs and economic mobility as they restructure cities. With strong local support, CBAs let communities have a say in projects and foster workforce development, making sure they meet specific needs like hiring locals and protecting the environment. With an increase in federal funding available for infrastructure projects, it’s vital to spend it in ways that will benefit communities long term, especially as it relates to developing diverse, local talent.

What is a community benefits agreement?

Community benefits agreements (CBAs) are “legal agreements between community benefit groups and developers, stipulating the benefits a developer agrees to fund or furnish, in exchange for community support of a project.” (Department of Energy, Office of Energy Justice and Equity). They are intended to ensure that local communities reap the benefits of economic development projects.

“Community benefit groups” can be organizations like neighborhood associations, other community-based and nonprofit organizations, labor unions, and other community stakeholders such as workforce development organizations. The “developer” can be a for-profit company, but in some instances it is a local government or governmental entity.

Why CBA’s are useful for local government leaders

By bringing the community into negotiations early, CBAs can help developers avoid lengthy and contentious public hearings and processes for zoning, approvals, permitting, etc. Sometimes CBAs are negotiated between community benefit groups and developers alone before going through the regulatory approval process for a project, but in other instances local government encourages developers to negotiate with community organizations and plays a more active role in the negotiations (e.g. by establishing city policies on CBAs or providing incentives for bidders who establish CBAs).

CBAs can help local government officials make informed choices about potential projects because they provide evidence of community support. CBAs work best at holding developers accountable for providing community benefits if local government officials approve the CBA or incorporate it into their agreement with a developer.

CBAs are also popular. Fifty-nine percent of local voters report that they support CBAs and 62% say that they would support the use of a CBA for a development project in their community.

“Through CBAs, communities are now playing a vibrant role in helping to make decisions that support the families and children who live in the communities where development is taking place.” — Anne E. Casey Foundation

Common benefits included in a CBA

The benefits in a CBA are flexible and can be tailored to meet community needs. Some communities also have benefits that they expect to be included consistently in any project.

Examples of benefits commonly included in CBAs¹:

• Local or targeted hiring (e.g. prioritize hiring in neighborhood adjacent to the project) and job creation commitments
• Wage and benefit agreements, such as a living wage requirement or stable scheduling agreements
• Workforce training investments such as apprenticeships, pre-apprenticeships or other earn and learn models
• Affordable housing commitments
• Educational partnerships with local schools
• Supports for or prioritization of small and local businesses
• Environmental benefits or actions to reduce the environmental impact of a project
• Construction of community resources like parks and recreational facilities or childcare centers