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. It allows municipal governing bodies to instruct planning boards to conduct special reexaminations of existing regulations, focusing on 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. By doing so, municipalities can qualify for preferential status in state aid distribution, which includes grants and financial assistance from the Department of Community Affairs and the Commissioner of Transportation.

Furthermore, the bill increases the district aid percentage for school facilities projects in municipalities that implement these housing strategies, with a maximum increase of 10 percent. The Commissioners of Education and Community Affairs are responsible for developing a uniform methodology to determine this aid percentage increase based on the number of additional housing units permitted. The bill also directs the Department of Community Affairs to create rules and regulations to facilitate these provisions, thereby incentivizing local governments to enhance their housing development potential and improve access to state funding.

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