This bill mandates the Commissioner of Community Affairs, in collaboration with the Director of the Division of Taxation, to conduct a comprehensive study on the use of financial agreements by municipalities that allow redevelopers to make scheduled payments in lieu of taxation. The study aims to assess the impact of these financial agreements, which are authorized under the "Long Term Tax Exemption Law" and the "Five-Year Exemption and Abatement Law," on the revitalization of blighted areas. The study will gather data on various aspects, including the total number of agreements, their terms, the amount of tax revenue exempted or abated, revenue from payments in lieu of taxation, and details about the redevelopment projects associated with these agreements.

Additionally, the bill requires municipalities to provide any requested information for the study to the Department of Community Affairs. Within one year of the bill's effective date, the Commissioner must submit a written report to the Governor and the Legislature, detailing the study's findings and offering recommendations for improving the efficiency and effectiveness of these financial agreements while maintaining local autonomy. The report will also be published on the Department's website.