The idea of community benefits agreements (CBAs) and its potential to involve local people more actively in the development process have attracted increasing attention in recent years. CBAs are contracts between developers and community organizations that specify the advantages to be given to the community in return for support of a development project. These advantages may include affordable housing or job training. Zoning decisions are one area where CBAs are being used more and more.

Local governments under their authority control land use and development through the zoning process. It establishes the rules for building design and construction as well as what can be erected where and how much can be built. Residents’ quality of life may be significantly impacted by zoning choices, hence it is crucial that the community participate in the process.

Zoning decisions used to frequently be made behind closed doors by government representatives and developers, with minimal community input. This frequently resulted in situations where development projects were approved without taking the needs and concerns of nearby inhabitants into consideration. With the increasing use of CBAs in zoning decisions, this has changed recently.

CBAs give the community a way to directly influence the course of development. They enable community organizations to bargain with developers for certain community advantages that will be offered in exchange for backing a development project. Affordable housing, career training programs, community spaces, and environmental protection are a few examples of these advantages.

Across the nation, CBAs have been used effectively in a number of zoning decisions. CBAs, for instance, were used to bargain for the inclusion of affordable housing in the Atlantic Yards construction project in New York City. CBAs were employed in Los Angeles to negotiate job training programs for locals working on the new football stadium.

CBAs do not come without difficulties, though. They take a lot of time and effort to negotiate, and there is always a chance that the developer will decide to break the contract. Furthermore, CBAs might not be appropriate for every zoning decision because some projects might not be able to deliver the advantages that the community wants.

Despite these difficulties, CBAs are a crucial tool for empowering communities during the development process. They offer a way for the community to directly influence development and gain particular advantages for the community. We may anticipate seeing CBAs used increasingly frequently in zoning decisions across the nation as more communities become aware of the potential advantages of them.

Communities can empower themselves in the development process through a variety of methods, in addition to CBAs. The usage of community land trusts (CLTs) is one such tool. CLTs are nonprofit companies that hold real estate in trust for the good of the neighborhood. They can be used to guarantee that land is utilized for community-based initiatives like affordable housing, community gardens, and others.

Community development corporations (CDCs) are an additional instrument. CDCs are nonprofit organizations committed to reviving communities and fostering economic growth. They can be utilized to offer neighborhood people options like small business loans, job training programs, and other things.

All things considered, CLTs, CDCs, and the usage of CBAs are crucial tools for community empowerment in the development process. They offer a way for the neighborhood to influence development and gain particular advantages for the neighborhood. We may anticipate seeing these tools used more frequently in the future as more and more communities become aware of them.

As a result, it is critical that the community has a voice in the process because zoning decisions have a substantial impact on inhabitants’ quality of life. CBAs give the community a way to directly influence development and ensure certain benefits for the community. CBAs must be carefully considered and negotiated since they are not a panacea. In addition to CBAs, communities can further their own empowerment in the development process by using other tools like CLTs and CDCs. Communities may make sure that development benefits not only the communities that it is designed to serve but also the developers by cooperating and employing these tools.

F2H Capital Group is a debt advisory firm specializing in negotiating the best terms for your commercial real estate projects. The company offers a range of financial products and services, including fixed loans, bridge loans, and construction loans across all asset types. Please contact us for any of your financing needs.