Stockton adopts two ordinances to meet fourth‑round affordable housing obligations and set development fees

Stockton Borough Council adopted two ordinances on Feb. 9 aimed at satisfying the borough’s fourth‑round affordable housing obligations and establishing local rules for development fees and affordable‑housing programs.

Borough Planner Joanna Slagle told the council the ordinances are largely administrative steps required by the borough’s settlement agreement and Housing Element and Fair Share Plan; Attorney Lisa Maddox noted only minor typographical revisions before council votes. The public hearing for both ordinances drew no public comment; both measures passed on unanimous roll calls where recorded.

The Development Fee Ordinance (Ordinance 2026‑01) creates a municipal framework for collecting and spending development fees under New Jersey law. Residential development fees are set at 1.5% of equalized assessed value (and a 6% fee for bonus units resulting from permitted density increases); non‑residential fees are set at 2.5% of equalized assessed value for new non‑residential construction or increases in assessed value from additions. The ordinance lists exemptions including fully affordable developments, vested approvals, and owner‑occupied replacement after disaster. Collection procedures require the tax assessor to provide an estimate within 90 days of permit notice; 50% of the fee is collected at building permit and the remainder at certificate of occupancy, with an appeal process and escrow for disputed amounts.

The ordinance establishes an interest‑bearing Affordable Housing Trust Fund into which development fees, payments‑in‑lieu, recapture funds, rental income and other revenues must be deposited and separately identified. Fund expenditures must conform to an approved spending plan (or a Division‑approved emergent opportunity) and may not reimburse past housing activities; up to 20% of revenues may be used for administration.

Ordinance 2026‑02, titled the Stockton Borough Fourth Round Affordable Housing Ordinance, implements requirements from Stockton’s Housing Element and Fair Share Plan and the borough’s settlement with Fair Share Housing Center. Key provisions include:

• A mandatory 20% affordable set‑aside on future residential developments of five or more units developed at densities of six units per acre or greater, with at least 50% of restricted units affordable to low‑income households and 13% affordable to very‑low‑income households.

• An accessory‑apartment program allowing accessory units that meet affordability and deed‑restriction requirements to count toward credit; the program caps creditable accessory apartments at ten units or 10% of Stockton’s fair‑share obligation, whichever is greater.

• Inclusionary‑zoning phasing rules tying the delivery of affordable units to market‑rate construction milestones, standards for unit mix (two‑ and three‑bedroom units required to meet market needs), and rules for integration of restricted units with market units.

• Affirmative‑marketing requirements (regional outreach, language access, listing on the New Jersey Housing Resource Center at least 60 days before lotteries) and use of a random selection process, with occupancy preferences limited to those allowed by UHAC and statute.

• Administrative provisions that establish a municipal housing liaison (MHL), require annual AHMS monitoring submissions, permit appointment of administrative agents for ownership and rental programs, and provide enforcement remedies and appeal routes under UHAC and state law.

Planner Slagle cautioned that Stockton’s obligation is limited by realistic constraints: the borough lacks substantial vacant land for new construction and is operating under infrastructure limits (a water moratorium) that must be remedied before large new projects can proceed. She described the fee ordinance as a vehicle to collect development fees from future growth to fund affordable‑housing activities when projects are feasible.

What’s next: Council endorsed the Planning Board’s amended Housing Element and Fair Share Plan and authorized filing the amended plan with the court to pursue certification of compliance under the settlement. The ordinances take effect upon passage and publication as provided by law.

—Direct quotes and sources: Planner Joanna Slagle explained the ordinances “are basically template ordinances that are administrative but are part of the settlement agreement for the fourth round”; Attorney Lisa Maddox identified only typographical edits and asked that the ordinances be adopted with minor amendments. All quoted or paraphrased attributions map to Stockton Borough Council meeting segments and speakers.