This bill establishes a process for exempting municipalities from certain fair share affordable housing obligations if they are designated as extensively flood-prone. The Commissioner of Community Affairs is tasked with determining these exemptions based on criteria such as flood insurance payments, the number of repetitive loss properties, and other relevant data. The bill aims to protect municipalities from builders' remedy actions that could compel housing construction, thereby acknowledging the unique challenges faced by areas at high risk of flooding.

To implement this exemption, the Commissioner of Community Affairs, in consultation with the Commissioner of Environmental Protection, is required to adopt rules and regulations within three months of the bill's enactment. These regulations will outline the criteria for designating municipalities as extensively flood-prone and will specify the types of fair share obligations that can be exempted, including present and prospective obligations as well as any unfulfilled prior round and gap period obligations.