The bill aims to encourage municipalities to adopt strategies that promote denser residential development by establishing state funding preferences for those that update their master plans and development regulations. Municipal governing bodies can direct planning boards to reexamine existing regulations and consider specific housing strategies, such as permitting accessory dwelling units, reducing parking and lot size requirements, and allowing multi-unit dwellings in areas typically restricted to single-unit homes. Municipalities are required to report their findings and recommended changes to the Office of Planning Advocacy and relevant county planning boards to qualify for preferential status in state aid distribution.

Additionally, the bill amends existing laws to provide a preference for municipalities that have updated their development regulations to increase housing unit availability when applying for state grants and financial assistance. It tasks the Department of Community Affairs with establishing criteria for these preferences and coordinating with other state agencies to align funding priorities. The bill also includes provisions for increasing state debt service aid for school facilities projects in municipalities that adopt the proposed housing strategies, thereby incentivizing local governments to enhance their housing development frameworks. Overall, the legislation seeks to promote residential development and improve access to state funding for municipalities that implement progressive housing policies.

Statutes affected:
Introduced: 18A:7G-9, 18A:7G-15