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What Are Development Agreements?
A new development agreement could bring revitalization to an underdeveloped area by combining new housing with community-focused benefits. For instance, a DA might allow a developer to build a mixed-use complex with affordable housing units and local shops. In return, the agreement ensures that a portion of the housing remains affordable for lower-income families and creates job opportunities for residents. This collaborative approach not only enhances the neighborhood’s infrastructure but also supports equitable growth and local employment.
Understanding development agreements
Development agreements (“DAs”) are contracts between the City and a developer that lay out development rights and commitments; project rules and regulations; additional public benefits of the project; and implementation. City agencies work closely to ensure that development agreements contain community benefits that address the need for equitable outcomes, including significant affordable housing and local employment components.
The purpose of a Development Agreement is to use a contractual approach to garnering community benefits that otherwise couldn’t be achieved through legislated requirements.
This is the time when the City and developers negotiate the terms of developing a lot. The City grants additional benefits to the developer than the current zoning regulations would allow, and in return, the developers offer to the City an increased amount of affordable housing within developments beyond what is required of development in the city; funding acquisition and preservation of existing buildings and protection of tenants; funding community programs, investments, and objectives; supporting workforce development and community-serving businesses, and protecting arts and cultural resources. There isn’t a limit to what could be determined under a development agreement, if it is feasible, and the parties agree.