The proposed bill aims to encourage municipalities to adopt strategies that promote denser residential development by establishing state funding preferences for those that amend their master plans and development regulations. Municipal governing bodies can direct planning boards to reexamine existing regulations to qualify for preferential status in state aid distribution. The bill outlines specific strategies for consideration, 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. If planning boards recommend changes, they must adopt a report and initiate the amendment process, which includes public hearings.

Furthermore, the bill mandates that the Department of Community Affairs prioritize municipalities that have made these regulatory amendments when awarding grants or financial assistance. It also allows for increased state debt service aid for school facilities projects in municipalities that adopt the proposed housing strategies, incentivizing local governments to enhance their housing policies. The Commissioner of Education and the Commissioner of Community Affairs will develop a methodology to determine the increase in district aid based on the number of additional housing units permitted, thereby reinforcing the bill's goal of increasing housing availability and density in targeted areas.

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