Knowlton Committee introduces two ordinances to comply with state affordable-housing rules

Knowlton Township’s governing body introduced two ordinances on Feb. 23 to bring the township into compliance with state affordable-housing requirements tied to the Fourth Round Housing Element and a January 2026 Consent Order.

Ordinance 26-03 would repeal and replace the Township’s development-fee section (11-152.1) to align with the amended New Jersey Fair Housing Act (P.L.2024, c.2) and implementing regulations at N.J.A.C. 5:99. The ordinance would set residential development fees at 1.5 percent of the equalized assessed value (EAV) when no density increase is permitted and a 6 percent “bonus” fee for additional units allowed by variance; non-residential development fees are proposed at 2.5 percent of EAV for new non-residential construction and increases in value from additions. The ordinance also outlines exemptions, collection procedures, escrow during appeals, and trust-fund accounting and spending-plan requirements that must be approved by the Superior Court before funds are expended.

Ordinance 26-04, introduced the same evening, replaces Article 53 (Affordable Housing Regulations) and implements more detailed controls required by the Uniform Housing Affordability Controls (UHAC) and related rules. It defines eligibility, monitoring and reporting through the Affordable Housing Monitoring System (AHMS), sets a municipality-wide mandatory inclusionary set-aside of at least 20 percent for qualifying developments, and prescribes rehabilitation and new-construction program standards, bedroom distributions, accessibility requirements and affordable-unit design standards. The ordinance also sets control periods (for example, at least 30 years for restricted ownership units, 40 years for rental units except prior-round units) and prescribes the roles of an administrative agent and a municipal housing liaison.

Why it matters: The ordinances are part of Knowlton’s court-approved compliance package and are required to preserve the Township’s protection from exclusionary-zoning litigation for the current round. Clerk Kristin Shipps and committee members said the ordinances and implementing documents will feed into the Township’s Spending Plan and monitoring reports required by the Division of Local Planning Services.

What the Committee did: The Committee voted to introduce both ordinances. For Ordinance 26-03 the minutes state the ordinance "is required for compliance with the Township’s affordable housing obligations and must be adopted by March 15, 2026." The Committee recorded motions to introduce both ordinances (mover: Deputy Mayor Baley; seconder: Mayor Shipps) and carried the introductions; the documents will return for public hearings and adoption according to the posted meeting schedule and attorney review timeline.

Context and next steps: The ordinances reference a Consent Order with the Fair Share Housing Center dated Jan. 16, 2026 that approved Knowlton’s Fourth Round Housing Element and Fair Share Plan (HEFSP). The Committee said that the Spending Plan must receive Superior Court approval before the township may expend development-fee revenues. Committee members directed staff to circulate electronic copies of materials (for example, AHMS reporting guidance) and to coordinate timing with the Township Attorney so adoption schedules and public hearings can proceed.

What the ordinances do not yet decide: The ordinances establish standards and procedural requirements but leave details — such as the final Spending Plan allocations and which specific sites in the HEFSP will carry set-asides — to subsequent implementing documents, administrative-agent agreements, and court-approved plans.

The Committee's next step is to publish the required public notice, solicit public comment at future meetings, and return the ordinances for adoption according to the meeting calendar and any attorney review timelines.