Relates to community benefits agreements

Summary of provisions

Section One amends the general municipal law by adding a new article 12-I concerning community benefits agreements. The new section 239-bb pertains to situations where a community benefits agreement is consid- ered as a part of any proceeding, or to be a condition to obtain an approval or permit. A community benefits agreement is a private agree- ment between an applicant seeking approvals or permits where support or forbearance with respect to such approvals or permits is the consider- ation for such agreement. This bill gives the applicant discretion as to where a tangible benefit shall be located provided that the benefit be accessible to the public. Additionally, if the applicant chooses to position the benefit on the site being developed, the benefit must be reasonably related to the project being undertaken by the applicant.

This section also directs the permitting municipality to establish a monetary amount that shall be the maximum amount the developer shall be required to spend in providing a community benefit. The municipality shall not set this amount in excess of five percent of the increased density above what current zoning law allows for the project. No other community benefits agreement made between the developer and any other municipality or community organization shall require the developer to incur any expense in excess of the amount set by the municipality.

These requirements do not apply to a city with a population of one million or more.

Section Two is the effective date.

Justification

Community benefits agreements are sometimes entered into between a developer and a community organization or a developer and a municipality. Under these agreements, the developer's project is supported so long as the developer agrees to include some sort of bene- fit to the community. These benefits are often intangible such as agree- ing to living wage or prevailing wage requirements, green building requirements, or a provision that prohibits developers from hiring contractors that have violated certain laws. Sometimes, the benefit is in the form of funding for a community organization or program. When

such benefit is tangible, such as construction of a park or recreational facility, this legislation would allow the applicant/developer discretion as to the benefit's location. In the event that a developer chooses to place the benefit on the same property as the project, the applicant/developer must make the benefit accessible to the public and also ensure that the benefit is reasonably related to the project. The restrictions in the bill serve to protect the intent of the community benefit as something to enhance the community at large, as opposed to a mere enhancement of the developer's project.

Subsection two of the bill protects the developer from rising costs relating to the benefit by establishing a maximum cost at the outset of the project. Without an established price, the developer can wind up spending far in excess of what they budgeted for to fulfill their duties under the community benefit agreement. This amount is set by the permit- ting municipality and is capped in relation to how far the project exceeds the allowed density under the zoning law. Under this legis- lation, the cost of the benefit cannot exceed 5% of the increased densi- ty. This not only guarantees transparency throughout the process and protects the developer from unforeseen costs, but it also guarantees that the amount spent on the benefit relates to the amount by which the developer is benefitted by the municipality or organization's support of their project.

Legislative history

New Bill

Fiscal implications

None

Effective date

This act shall take effect immediately.