The Municipal Homelessness Trust Fund Act authorizes municipalities in New Jersey to establish municipal homelessness trust funds and adopt homeless housing plans to address the critical issue of homelessness within their communities. The act recognizes the multifaceted impact of homelessness on public safety, health, and the overall welfare of municipalities, and emphasizes the need for dedicated resources and strategic planning to combat this issue. Municipalities can create a trust fund by ordinance, which will receive funds from various sources, including additional fees on building permits and licensing fees, to support a homeless housing grant program.

The bill outlines the responsibilities of the municipal homelessness trust fund task force, which will advise municipalities on the creation of homeless housing plans and the allocation of funds. The trust fund will be used exclusively for activities related to providing permanent affordable housing, rental assistance, supportive services, and prevention services for individuals and families experiencing homelessness. Grants awarded must demonstrate measurable outcomes, cost savings, and adherence to the established homeless housing plan. Additionally, municipalities are required to report annually on the use of the trust fund to the Office of Homelessness Prevention.