This bill amends existing laws to establish priority consideration for municipalities in compliance with affordable housing obligations when awarding grants or financial assistance through various programs administered by the Department of Community Affairs and the New Jersey Economic Development Authority. Specifically, the bill mandates that these departments prioritize municipalities that have obtained compliance certification for their previous affordable housing obligations and have met certain criteria, such as not including affordable units from builders remedy litigation and entering into settlement agreements. The bill also outlines a timeline for compliance, providing priority consideration during the first five years of a new round of affordable housing obligations and thereafter based on substantial progress.

Additionally, the bill clarifies that the priority consideration requirements do not apply to grants or financial assistance aimed at helping municipalities fulfill their fair share housing obligations. It also defines Qualified Urban Aid municipalities as those exempt from prospective fair share affordable housing obligations, ensuring they receive the same priority consideration. The act is set to take effect immediately upon approval.