Community Benefits Agreements: An Important Tool for Inclusionary Housing

Ben Beach, Legal DirectorThe Partnership for Working Families

Local Tools and Strategies for Achieving Inclusion SessionSolutions 2013 ConferenceSeptember 16, 2013

What Is a Community Benefits Agreement?

Cooperation Agreement

Cooperation Agreement

Government Agreement

• Lease• Subsidy• Development

AgreementDeveloper

Community Coalition

Local Government

Community Benefits

• 6 million s.f., multi-developer project surrounding Staples Center including 2100 permitted residential units

• CBA executed 2001, provides for 20% affordable housing (on-site or off-site) at 50%, 60% and 80% AMI

• $650,000 zero-interest revolving loan fund for local non-profit developers

Example 1: LA Sports and Entertainment District

• CBA executed 2008 for massive mixed-use project – 12,000 anticipated residential units.

• 32% of housing units on site affordable. Half of those are rental units at 60% AMI or below. Remainder are for sale at 80-160% AMI. Preference for local and displaced residents.

• Provides for over $27 million in housing assistance funds targeted to neighborhood residents, including down payment assistance.

Example 2: Bayview-Hunters Point

• 2005, City of Los Angeles’ (former) Community Redevelopment Agency, after multiple CBAs on Agency-assisted projects, adopted inclusionary housing policy

• For projects built with CRA housing funds, 30% on-site at 50% AMI or below, with at least 50% for 30% AMI

• 30 year affordability covenants enforceable by tenants

CBAs Can Lead to Policy

• Who is “community”?• Timing of construction of affordable units• Enforceability (clarity, no encumbrances)• Enforcement (private right, coalition

capacity)• Binding Transferees• “Credits,” contributions and other release

valves

Issues to Consider