This bill aims to facilitate the conversion of properties owned by religious and nonprofit organizations into inclusionary developments that include affordable housing. It mandates that municipal planning boards allow such conversions without requiring a use variance, provided that the developments meet specific zoning requirements. Key stipulations include reserving at least 20% of the residential units as very-low, low-, or moderate-income housing, with additional requirements for the distribution of these income-restricted units. The bill also sets density and height restrictions for these developments, allowing for a maximum of 40 units per acre and permitting an increase in height if local zoning allows for it.

Furthermore, the bill ensures that projects developed under its provisions are eligible for long-term tax exemptions, overriding any conflicting provisions in the "Long Term Tax Exemption Law." It also clarifies that applicants can seek additional tax incentives, financing, or grants to support their projects. All developments must comply with the "Municipal Land Use Law" and other relevant municipal zoning ordinances that do not conflict with the bill's requirements. Overall, the legislation is designed to promote affordable housing initiatives while streamlining the approval process for eligible properties.