This bill aims to facilitate the development of accessory dwelling units (ADUs) in New Jersey by mandating that municipalities adopt or amend land use regulations to allow for their creation on lots containing single-family dwellings. It emphasizes the importance of ADUs as a cost-effective housing solution that can accommodate various demographics, including family members, the elderly, and individuals with disabilities. The legislation stipulates that ADUs must be permitted as a right in zones where single-family or two-family dwellings are allowed, and it outlines specific restrictions that municipalities cannot impose, such as requiring a passageway between the ADU and the principal dwelling or mandating a minimum age for occupants.

Additionally, the bill establishes a streamlined approval process for ADUs, classifying applications as ministerial actions that do not require public hearings. If a municipal agency fails to act on a complete application within 60 days, the application is automatically approved. The legislation also clarifies that ADUs will not be considered new residential uses for the purpose of imposing connection fees for water and sewer services unless they are built alongside new single-family units. Overall, the bill seeks to enhance housing availability while maintaining local architectural character and ensuring compliance with existing building codes.