Fees & public finance
Community benefits agreement (CBA)
A negotiated package of benefits beyond code minimums — local hire, extra affordability, open space — tied to a project's approvals or its DA.
Definition
A community benefits agreement is a negotiated package of commitments exceeding what any ordinance requires — deeper affordability, local-hire or wage standards, childcare, parks, community space. It takes two main forms: a private contract between the developer and community coalitions (enforceable as a contract), or a public benefits package embedded in the entitlement itself, typically a development agreement or specific-plan approval. No dedicated statute governs CBAs; they ride the discretionary approvals a project needs under the Zoning Law, which is where the negotiating leverage comes from.
Why it matters in an underwrite
A CBA pencils exactly like an exaction but escapes nexus and proportionality scrutiny because it is volunteered — once signed, there is no § 66020 protest to fall back on. So underwrite each commitment as a hard cost or NOI haircut before agreeing: wage and local-hire terms move hard costs materially, extra affordability compounds over the covenant term, and commitments recorded or embedded in a DA bind successors and lenders. Negotiate the package against the value of the entitlement certainty it buys.
Sources & related guides
See also
See the term in the law itself
Read the controlling text in the Code Library, or ask the AI how it applies to your project.
Last reviewed 2026-07-29. General information, not legal advice.