Senate Bill S3415

                                BILL NUMBER:S3415

TITLE OF BILL:  An act to amend the general municipal law, in relation
to community benefits agreements

PURPOSE OR GENERAL IDEA OF BILL:  This legislation requires that when a
community benefits agreement is entered into as a condition to obtain an
approval or permit, the applicant shall have discretion over where the
benefit is located provided that the benefit is accessible to the
public. Additionally, if the benefit is placed on the property that the
application pertains to, the benefit must be reasonably related to the
project undertaken by the applicant.

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.