This bill aims to provide municipalities in New Jersey with a fair share affordable housing bonus credit for transitional housing specifically reserved for low or moderate income veterans. Under the proposed legislation, municipalities would receive one credit and one bonus credit for each bedroom in transitional housing that is either occupied or restricted for occupancy for a minimum of 10 years by qualifying veterans. The bill defines "transitional housing" as housing that includes supportive services to assist individuals and families experiencing homelessness in moving to permanent housing within a set timeframe, typically up to 24 months.

The bill also clarifies the definition of a "veteran" as a citizen and resident of New Jersey who has been discharged from full-time active service in any branch of the Armed Forces, with specific exclusions for certain types of discharges. This legislation is designed to incentivize the development of transitional housing for veterans, thereby addressing both housing needs and the fair share affordable housing obligations of municipalities. The bill is set to take effect immediately upon enactment.