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 and affordability criteria. At least 20% of the residential units must be designated as very-low, low-, or moderate-income housing, with additional stipulations regarding the distribution of these income-restricted units. The bill also establishes density and height restrictions for these developments, allowing for a maximum of 40 units per acre and an increase in height above the standard zoning limits.

Furthermore, 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 clarifies that applicants can still seek tax incentives, financing, or grants to support their projects, while also requiring compliance with the "Municipal Land Use Law" and other relevant municipal zoning ordinances. Overall, the legislation is designed to promote affordable housing development by streamlining the approval process for eligible properties.