Council introduces sweeping affordable housing ordinance tied to fourth-round plan

The Washington Borough Council introduced Ordinance 2026-05 on first reading Feb. 17, 2026, a comprehensive Affordable Housing Ordinance intended to implement the borough's Fourth Round Housing Element and Fair Share Plan (HEFSP). The ordinance repeals and replaces prior affordable housing and development-fee articles and incorporates state statutory and regulatory references, including P.L. 2024, Chapter 2, N.J.A.C. 5:99, UHAC (N.J.A.C. 5:80-26.1 et seq.), and other amended rules.

Key provisions include a municipality-wide mandatory set-aside of 20% for qualifying developments (at least five new housing units created through rezoning, variance, redevelopment plan or rehabilitation providing densities at/above six units per acre), rules for rounding fractional set-aside obligations (fractional subsidy payment options), monitoring/reporting to the Department via the Affordable Housing Monitoring System (AHMS), minimum subsidy levels for accessory apartments and market-to-affordable programs, long control periods for restricted ownership and rental units (30 years for ownership; generally 40 years for rental, with 45 years for LIHTC projects), and a residential development fee structure (1.5% of equalized assessed value for most residential development; 6% bonus fee for additional units where density is increased by variance). The ordinance also establishes a Municipal Housing Liaison role and administrative agent responsibilities.

Council approved introduction by motion (Musick/Infinito) with a unanimous roll call. The ordinance text was read into the record and will be the subject of subsequent review and public hearing steps required by state law and court monitoring processes tied to the HEFSP.