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 the developments meet specific zoning requirements. The bill stipulates that at least 20% of the residential units must be designated as very-low, low-, or moderate-income housing, with additional requirements for the distribution of these income-restricted units. Furthermore, the bill outlines permitted density and height restrictions for these developments, allowing for a maximum of 40 units per acre and a height increase above the standard zoning limits.

Additionally, the bill ensures that projects developed under its provisions are eligible for long-term tax exemptions, overriding any conflicting regulations in the "Long Term Tax Exemption Law." It also clarifies that applicants can still seek tax incentives, financing, or grants to support their projects. All development activities 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.