Knowlton Committee adopts sweeping affordable‑housing rules, updates development fee ordinance

Knowlton Township’s governing body adopted two interlocking ordinances on March 9 that together revise how the township collects and spends development fees and how it regulates affordable housing projects.

The committee unanimously approved Ordinance 26‑03, which sets residential development fees at 1.5 percent of a project’s equalized assessed value and non‑residential fees at 2.5 percent, plus a 6 percent “bonus” fee on additional units created through increased density under statute. The same meeting adopted Ordinance 26‑04, a comprehensive replacement of Article 53 of the township code that implements the township’s Fourth‑Round Housing Element and Fair Share Plan and incorporates state Fair Housing Act and UHAC requirements for monitoring, set‑asides, design and affordability controls.

Why it matters: together the ordinances define how Knowlton can fund and deliver very‑low, low‑ and moderate‑income housing, and they tie municipal procedures to state reporting and court‑approved spending plans. Ordinance 26‑04 prescribes detailed program rules — from affirmative‑marketing responsibilities and municipal housing‑liaison duties to control periods (30–40 years, with specific rules for prior‑round and LIHTC projects), inspection and enforcement remedies — providing the municipal framework the township will use to implement its court‑approved housing plan.

Key details adopted March 9 include: residential development fees of 1.5 percent of equalized assessed value for standard projects and a 6 percent bonus fee for density increases (except where affordable housing is included); non‑residential fees of 2.5 percent of equalized assessed value; exemptions and appeal routes consistent with state law; creation of a Municipal Affordable Housing Trust Fund with required reporting into the AHMS portal; a municipality‑wide 20 percent mandatory inclusionary set‑aside for qualifying developments of five or more units; and programmatic requirements for rehabilitation, new construction, accessory‑apartment subsidies, and market‑to‑affordable interventions.

The ordinances require that any spending of development fees conform to a court‑approved Spending Plan and establish monitoring and reporting responsibilities (AHMS annual reporting due Feb. 15). The ordinances also spell out administrative roles: an Administrative Agent to manage unit certification, affirmative marketing, resales and compliance; and a Municipal Housing Liaison (MHL) to oversee AHMS reporting, program oversight and coordination with the Division of Local Planning Services.

No public comment was received during either public hearing. Mayor Debra Shipps called the items to a vote; the roll call on both ordinances was Baley — Yes; Lembeck — Yes; Mazza — Yes; Starrs — Yes; Shipps — Yes.

What’s next: the ordinances take effect according to law and implementation will require appointment or contracting of an Administrative Agent, a tri‑party escrow agreement if the Division is to have disbursement authority, adoption of a spending plan where required, and AHMS reporting and monitoring by the Municipal Housing Liaison. The committee noted the HEFSP and prior court approvals that underlie some credits and program options.

Votes at a glance: the committee recorded unanimous roll‑call approval for Ordinance 2026‑01 (soil importation), Ordinance 26‑03 (development fees) and Ordinance 26‑04 (affordable housing regulations). A separate consent‑agenda slate of resolutions (appointments, grants support, county housing agreement, refunds, Affirmative Marketing Plan adoption, and other routine items) was approved with one item pulled for separate consideration.

Sources: Knowlton Township Committee meeting minutes, March 9, 2026 (public hearing text, roll calls, ordinance text and resolutions).