This bill mandates that the State Treasurer provide annual financial compensation to certain municipalities for their costs associated with the development of low- and moderate-income housing units. Specifically, the State will allocate $75,000 to the Local Infrastructure and Planning Fund of each municipality for every unit of low- or moderate-income housing that the municipality commits to, as certified in their housing element and fair share plan. The total payments owed for a 10-year round of affordable housing obligations will be divided by 10 and distributed annually, starting in the first full calendar year of the round. If a municipality receives its compliance certification later than the first year, the payments will be adjusted accordingly.

Additionally, municipalities that obtain compliance certification are required to establish a Local Infrastructure and Planning Fund, which must be kept separate from other municipal funds. This fund can be used for various expenses related to compliance with the "Fair Housing Act," including planning services, attorney fees, and infrastructure costs that may arise from the construction of affordable housing. The bill also empowers the State Treasurer to create rules and regulations to implement its provisions, and it takes effect immediately upon enactment.