Where authorised by statute, a development agreement binds both the municipality and the developer for a defined term.
What the developer receives. Vested rights — the applicable regulations frozen for the term, protecting against later ordinance changes. That certainty is what makes long-horizon projects financeable.
What the municipality receives. Enforceable commitments on phasing, infrastructure, dedications, design, affordable units and timing, with security.
Statutory authority. Required in most states, with prescribed procedures — public hearing, adoption by ordinance or resolution, recording, and periodic review of compliance.
Term. Long enough to matter and short enough that circumstances do not outrun it, commonly five to twenty years with extension provisions.
Reserved powers. The municipality cannot contract away its police power, so agreements reserve the right to apply later regulations necessary for public health and safety, and the scope of that reservation is negotiated carefully.
Assignment. To successors and to lenders, with notice and, usually, consent not unreasonably withheld.
Default and remedies. Cure periods, and the consequences of default for both sides, including whether the vesting terminates.
Amendment by a defined process distinguishing minor from major changes.