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 defines an accessory dwelling unit as a secondary living space that is either attached or detached from the primary dwelling, equipped for independent living, and located on the same lot. The legislation emphasizes that municipalities cannot impose certain restrictions that would hinder the development of ADUs, such as requiring a passageway to the main dwelling, imposing excessive parking requirements, or mandating familial relationships between occupants.

Additionally, the bill streamlines the approval process for ADUs by classifying applications as ministerial actions, which 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 bill also clarifies that ADUs will not be considered new residential uses for the purpose of calculating water and sewer connection fees unless they are built alongside new single-family homes. Overall, the legislation seeks to enhance housing availability in New Jersey while maintaining local control over land use regulations.