Community Benefits Agreements as Contracts: A Framework for Evaluating New Jersey's EMERGE and ASPIRE Programs
Ashanti Jones
May 2026
Community Benefits Agreements (CBAs) are contracts between developers and communities that exchange community support for development projects for material benefits. New Jersey became the first state to statutorily require CBAs in tax incentive programs in 2021 through its EMERGE and ASPIRE programs, though significant workarounds undermine the mandate’s force. This memorandum examines a number of CBAs executed under both programs and argues that, in their current form, these agreements fail to achieve the purpose of ensuring that economic development benefits existing residents and communities. Analysis through dual frameworks of distributive justice and regulatory capture reveals fundamental contract law deficiencies, including vague performance standards, inadequate benefit-to-subsidy ratios below 1%, and missing enforcement mechanisms, rendering agreements aspirational rather than binding. Workforce provisions are entirely absent from an employment-focused program, and enforcement is limited. These failures prevent CBAs from being equity-centered or protective of local residents. Recommendations outline how the state legislature, NJEDA, municipalities, and community coalitions can modify CBA content and enforcement through contract formation requirements, including establishing appropriate parties, incorporating mandatory substantive terms with quantifiable metrics, implementing actual enforcement mechanisms, and enacting statutory reforms to eliminate municipal workarounds. These reforms can transform CBAs from symbolic documents into enforceable instruments that deliver equitable outcomes while ensuring communities receive actual, feasible benefits from publicly subsidized development.
Read the memorandum below: