COMMUNITY BENEFITS AGREEMENTS
Community Benefits Agreements are legally enforceable contracts between community groups and developers setting forth what the developers agrees to provide for the community.
COMMUNITY BENEFITS AGREEMENTS
Community Benefits Agreements often focus on developments which receive government subsidies. Community Benefits Agreements are often attached to development agreements between the government and the developer. Community Benefits Agreements are often enforceable by the government as well as the community groups.
Building Blocks for Community Benefits Agreements
Preexisting Local ordinances make the negotiation of Community Benefits Agreements easier. Community Benefits Agreements often incorporate terms or concepts from preexisting local ordinances. Applicability of Local ordinances can be expanded through policies incorporated in Community Benefits Agreements. Community Benefits Agreements often build on coalitions formed to pass Local
SUBJECTS OF COMMUNITY BENEFITS AGREEMENTS
Quality Jobs and Local Hiring Affordable Housing Environmental Guarantees Parks and Recreational Facilities Social Services and Child Care Facilities Neighborhood Oriented Tenants
Quality Jobs and Local Hiring
Living Wage Agreements First Source Hiring Local Hiring Goals Standards for Responsible Contracting Standards for Responsible Tenants Community Benefits Analyses
LIVING WAGE ORDINANCES
A living wage ordinance requires employers to pay wages that are above federal or state minimum wage levels. Only a specific set of workers are covered by most living wage ordinances, usually those employed by businesses that have a contract with a city or county government or those who receive economic development subsidies from the locality.
LIVING WAGE ORDINANCES
In addition to setting wage levels, many ordinances also have provisions regarding benefits (such as health insurance and paid vacation), labor relations, and hiring practices. The rationale behind the ordinances is that city and county governments should not contract with or subsidize employers who pay poverty-level wages.
Over 120 Localities Have Adopted Living Wage Ordinances Miami-Dade County Contracts over $100,000 per year for services All contracts for services by the Aviation Department $9.44 an hour if employer-paid health benefits are offered, or $10.81 without health benefits
Broward County
County employees Companies contracting with the County to provide certain services $9.57 an hour – or $10.82 an hour if health benefits are not provided.
Miami Beach
City employees Certain service contractors with contracts over $100,000 $8.56 an hour if employer-paid health benefits are offered, or $9.81 without health benefits, indexed annually.
Other Living Wage Ordinances Florida Orlando FL City employees and employees of private contractors $8.50 an hour Additional 20% if no health benefits.
Other Living Wage Ordinances Florida Palm Beach County County construction contracts greater than $100,000 $9.57 an hour
Other Living Wage Ordinances Sonoma CA 2004 Applies to service contracts over $10,000 Requires 12 paid and 10 unpaid vacation days
Other Living Wage Ordinances Durham County NC 2004
Wage set at 7.5% above poverty Applies to all service contracts including temporary contracts.
(Durham CAN - Congregations, Associations and Neighborhoods)
LOCAL HIRING STRATEGIES
Require developers who benefit from public money to reserve a percentage of jobs for local residents. Ensure that un- or under-employed residents in economically isolated communities benefit from economic development and reinvestment happening in their community and promotes balance within a region's employment opportunities.
Types of Local Hiring Strategies Federally Mandated Programs Local Hiring Requirements First Source Hiring Programs
Federally Mandated Programs
Housing and Urban Development (HUD) Section 3 Program HUD CDBG Program
HUD Section 3 Program
Employment and contracting opportunities generated through HUD funds be directed to low- and very-low income County residents.
Priority to recipients of government assistance for housing, and to business concerns that are substantially owned by, or that substantially employ, these individuals.
HUD Funds in Miami Dade Approximate amounts allocated to the County and the City each year CDBG Miami-Dade County $23,877,000 Miami $9,928,000
HOME HOPWA $7,799,637 $882,003 $5,131,235 $10715000
Local Hiring Requirement Ordinances Miami Dade County Community Workforce Program County capital construction contracts over the amount of $250,000 minimum of 10% of the persons performing the construction trades and labor work under the contract be residents of Designated Target Areas
Local Hiring Ordinances
Problems
Difficult to monitor and enforce Easy to bring in outside workers
Response
Often combined with “first source hiring” requirement.
FIRST SOURCE HIRING
First Source Hiring can combine with Local Hiring Programs to help link job opportunities to low income communities surrounding developments. Employers agree to hire from a specified source like a community group or a One Stop Center. First Source Programs can help employers by cutting down on their recruitment and training costs.
FIRST SOURCE HIRING
Local governments can provide money and/or space to a community organization so it can do the necessary work in setting up a First Source Hiring Program.
Oakland CA -
Local Construction Employment Referral Program (LCERP) LOCAL HIRING PROGRAM All construction projects of $50,000 and all redevelopment agency projects Must hire Oakland residents for at least 50 percent of all work hours and for 50 percent of all new hires
Oakland CA -
Local Construction Employment Referral Program (LCERP) FIRST SOURCE HIRING PROGRAM Outreach and referral through 35 community based organizations Referrals through union halls Database of of 2,637 workers Placed 1,618 workers
HARTFORD, CONNECTICUT LOCAL HIRING ORDINANCE
All publicly assisted projects of 40,000 sq. ft. or more - 40 percent of all trade project hours must be performed by city residents; 50 percent of workers must be city residents 25 percent of all trade project hours must be performed by minorities and 6.9 percent must be performed by women; 1 in 5 workers must be apprentices,
Standards for Responsible Contracting
Require the bidder to show compliance with all laws and disclose any violations of OSHA, environmental, prevailing wage, workers compensation, and other worker protection laws.
Standards for Responsible Contracting City of Los Angeles -- Contractor Responsibility Program
Contracts Greater than $100,000 Satisfactory compliance with all laws, including but not limited to health and safety, labor and employment, wage and hours and licensing laws affecting employees.
Other Responsible Contracting Ordinances
New York City Council adopted an ordinance requiring the city to buy apparel and textile goods only from responsible contractors that comply with workplace and environmental laws and that pay a non-poverty wage
Service Worker Retention Ordinances
Designed to retain workers when City contracts change;
LA City Ordinance
Contracts over $25,000 Requires successor employer to employ prior contractor’s employees for at least 90 days.
FINAL GUIDING PRINCIPLES
When public subsidy or public concessions are given then the public should be benefited.
Those who are most impacted by publicly assisted development should be particularly protected.
FINAL GUIDING PRINCIPLES
The “project” itself is no longer sufficient benefit. What kind of jobs What quality of jobs Who gets the jobs
Construction Tenants
Who are the tenants
The Progression of Community Benefits Movement
In many Cities it started with individual ordinances – such as living wage - which applied to contracts with the Cities. It then expanded to Community Benefits Agreements which expanded the scope of individual ordinances and added other guarantees to projects assisted by the government.
Next Steps - Can Local Gov’t Pass a CBA Ordinance?
Local Government Ordinances are limited by the power of the gov’t to regulate.
How far does that power stretch?
TYPES OF GOVERNMENTAL INVOLVEMENT
Local Gov’t Contracting Local Gov’t Cash Subsidies to Private Developer Local Gov’t Land Use/Zoning Concessions to Private Developer
MUSP
QUESTIONS AND DISCUSSION