The Municipal Homelessness Trust Fund Act authorizes municipalities in New Jersey to establish municipal homelessness trust funds and adopt homeless housing plans to address the critical issue of homelessness. The act recognizes the multifaceted impact of homelessness on community life, including housing stock, public safety, and overall welfare. Municipalities are encouraged to create a dedicated funding source through these trust funds, which will enable them to implement comprehensive strategies to combat homelessness effectively. The act outlines the roles of community-based organizations and a municipal homelessness trust fund task force, which will advise on the creation of homeless housing plans and the allocation of funds.

Municipalities can impose additional fees on building permits, licensing fees, and fines to fund the trust, with a maximum of five percent allocated for administrative costs. The remaining funds must be used exclusively for a homelessness housing grant program, which supports projects aimed at acquiring, constructing, or rehabilitating affordable housing for individuals and families experiencing homelessness. Grants must demonstrate measurable outcomes, cost savings, and adherence to the municipal homeless housing plan. The act mandates that municipalities consult with the task force when utilizing trust fund resources, ensuring a collaborative approach to addressing homelessness in their communities.