This bill mandates that each municipality in New Jersey must either operate an emergency shelter for the homeless or partner with a private nonprofit organization to do so. Alternatively, municipalities can opt to pay a fee to their respective county, calculated as $5 multiplied by the municipality's total population based on the most recent federal decennial census. The counties are required to maintain an account for these payments and distribute the funds annually to municipally-operated shelters based on the proportion of homeless individuals served by each shelter relative to the total homeless population in the county.

Additionally, the bill allows municipalities to use funds collected from certificate of occupancy fees to help cover the costs associated with these requirements. It also stipulates that all emergency shelters must utilize the Homeless Management Information System to provide real-time updates on the availability of shelter beds. This legislation aims to enhance the support and resources available for homeless individuals within municipalities across the state.