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Lebanon adopts development-fee ordinance to fund affordable housing trust
Summary
Ordinance No. 04-2026, adopted March 11, 2026, replaces the Township’s development-fee rules, sets residential fees (1.5% base; up to 6% for density bonuses), nonresidential fees (2.5%), establishes the Affordable Housing Trust Fund and spending rules, and requires DCA-approved spending plans and AHMS monitoring.
Lebanon Township Committee on March 11 adopted Ordinance No. 04-2026 to repeal and replace the town’s Development Fee article, setting standards for collection, accounting and eligible uses of development fees to support affordable housing.
The ordinance sets a base residential fee at 1.5% of equalized assessed value where no density increase is permitted and allows higher charges—up to 6%—for units created by density bonuses. Nonresidential developments will be assessed a 2.5% fee on equalized assessed value for new construction or for increases in assessed value from nonresidential additions. The rules include exemptions, estimator and collection procedures tied to building permits and certificates of occupancy, and appeal processes for fee disputes.
All fees are required to be deposited into a dedicated Affordable Housing Trust Fund. The ordinance directs that at least 30% of development-fee revenue (unless a DCA waiver is granted) be used for affordability assistance, with one-third of that affordability-assistance portion reserved to help households earning 30% or less of median income. The ordinance limits administrative uses to 20% of revenue, requires DCA-approved spending plans, and channels monitoring through AHMS.
Ms. Beverly Koehler moved adoption of Ordinance No. 04-2026 and Mr. Tom McKee seconded; the roll-call vote recorded aye votes from Ms. Koehler, Mr. McKee and Mayor Jay Wojcik, with Mr. Rich Webb abstaining. No members of the public spoke at the hearing.
The ordinance takes effect upon DCA approval where required and upon publication; the Committee directed staff to ensure coordination with the Tax Assessor and to follow DCA reporting and spending-plan requirements.
