This bill mandates that the New Jersey Department of Community Affairs prioritize municipalities that meet specific affordable housing compliance criteria when awarding grants or financial assistance through programs like the Main Street New Jersey Program and the Neighborhood Preservation Program. The bill modifies existing language to clarify that priority consideration will be given to municipalities that the Department determines to be in compliance with new standards, rather than the previous requirement of being in compliance with their fair share housing obligations. Additionally, the bill specifies that the requirements do not apply to grants intended to help municipalities fulfill their affordable housing obligations.

Furthermore, the New Jersey Economic Development Authority is also required to give priority consideration to municipalities based on the new compliance standards outlined in the bill when awarding financial assistance. The bill emphasizes that municipalities that have obtained compliance certification for their affordable housing obligations or have made substantial progress in fulfilling these obligations will be prioritized. The act is set to take effect immediately upon passage.