This bill aims to prohibit the development of affordable housing on land that has been previously contaminated, even if it has undergone remediation and received certification from the Department of Environmental Protection as safe for development. The legislation recognizes the potential long-term health risks associated with living on previously contaminated land, particularly for vulnerable populations such as low-income households. To enforce this prohibition, developers are required to conduct a soil test to determine if the land is contaminated, and the results must be submitted to the local approving authority. Development or construction on contaminated sites is generally barred unless the site has been deemed sufficiently cleaned and safe by the Department of Environmental Protection.

Additionally, the bill establishes penalties for developers who violate these provisions, with the Commissioner of Community Affairs, in consultation with the Commissioner of Environmental Protection, responsible for designating violations and corresponding penalties. Municipalities that fail to comply with the bill's requirements when submitting their fair share plans and housing elements will not receive credit for their affordable housing obligations and may also face penalties. The bill is set to take effect immediately and will apply to any development applications and municipal plans that have not yet received approval or compliance certification prior to its enactment.