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A4764 • 2026

Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.

Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.

Housing
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
DiMaio, John
Last action
2026-03-19
Official status
Introduced, Referred to Assembly Housing Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.

Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.

What This Bill Does

  • Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.
  • Topic: Housing Fiscal note: This bill has been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-19 New Jersey Legislature

    Introduced, Referred to Assembly Housing Committee

Official Summary Text

Excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.
Topic:
Housing
Fiscal note:
This bill has been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text
A4764

ASSEMBLY, No. 4764

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Assemblyman� JOHN DIMAIO

District 23 (Hunterdon, Somerset and Warren)

Co-Sponsored by:

Assemblyman Scharfenberger

SYNOPSIS

���� Excludes flood-prone land from affordable housing
vacant land analysis; provides housing obligation cap.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning affordable housing, including
prospective
need obligation caps
and vacant land analysis to
non-redevelopment housing projects, and amending
P.L.1995, c.231 and P.L.2024,
c.2.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� Section 1 of P.L.1995,
c.231 (C.52:27D-310.1) is amended to read as follows:

���� 1.� Any municipality that
receives an adjustment of its prospective need obligations for the fourth round
or subsequent rounds based on a lack of vacant land shall, as part of the
process of adopting and implementing its housing element and fair share plan,
identify sufficient parcels likely to redevelop during the current round of
obligations to address at least 25 percent of the prospective need obligation
that has been adjusted and adopt realistic zoning that allows for such adjusted
obligation, or demonstrate why the municipality is unable to do so.� When
computing a municipal adjustment regarding available land resources as part of
the determination of a municipality's fair share of affordable housing, the
municipality, in filing a housing element and fair share plan pursuant to
subsection f. of section 3 of P.L.2024, c.2 (C.52:27D-304.1), shall exclude
from designating, and the process set forth pursuant to section 3 of P.L.2024,
c.2 (C.52:27D-304.1) and section 13 of P.L.1985, c.222 (C.52:27D-313) shall
confirm was correctly excluded, as vacant land:

���� (a)�� any land that is owned
by a local government entity that as of January 1, 1997, has adopted, prior to
the institution of a lawsuit seeking a builder's remedy or prior to the filing
of a petition for substantive certification of a housing element and fair share
plan, a resolution authorizing an execution of agreement that the land be
utilized for a public purpose other than housing;

���� (b)�� any land listed on a
master plan of a municipality as being dedicated, by easement or otherwise, for
purposes of conservation, park lands or open space and which is owned, leased,
licensed, or in any manner operated by a county, municipality or tax-exempt,
nonprofit organization including a local board of education, or by more than
one municipality by joint agreement pursuant to P.L.1964, c.185 (C.40:61-35.1
et seq.), for so long as the entity maintains such ownership, lease, license,
or operational control of such land;

���� (c)�� any vacant contiguous
parcels of land in private ownership of a size which would accommodate fewer
than five housing units based on appropriate standards pertaining to housing
density;

���� (d)�� historic and
architecturally important sites listed on the State Register of Historic Places
or National Register of Historic Places prior to the date of filing a housing
element and fair share plan pursuant to section 3 of P.L.2024, c.2
(C.52:27D-304.1) or initiation of an action pursuant to section 13 of P.L.1985,
c.222 (C.52:27D-313);

���� (e)�� agricultural lands when
the development rights to these lands have been purchased or restricted by
covenant;

���� (f)�� sites designated for
active recreation that are designated for recreational purposes in the
municipal master plan;
[
and
]

���� (g)�� environmentally
sensitive lands where development is prohibited by any State or federal agency,
including, but not limited to, the Highlands Water Protection and Planning
Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4), for
lands in the Highlands Preservation Area, and lands in the Highlands Planning
Area for Highlands-conforming municipalities
; and

����
(h)�� any land that is: (1)
lower than the most recent flood elevation determination, measured pursuant to
federal standards, (2) lower than the applicable flood elevation standard
required under regulations adopted pursuant to the "Flood Hazard Area
Control Act," P.L.1962, c.19 (C.58:16A-50 et seq.), or (3) within 100 feet
of category one waters designated by the Department of Environmental
Protection, pursuant to the "Water Pollution Control Act," P.L.1977,
c.74 (C.58:10A-1 et seq.), or any other law, or any rule or regulation adopted
pursuant thereto
.

���� No municipality shall be
required to utilize for affordable housing purposes land that is excluded from
being designated as vacant land.

����
No municipality shall be
required to authorize construction of a non-redevelopment housing project on
undeveloped land.

(cf: P.L.2024, c.2, s.23)

���� 2.��� Section 3 of P.L.2024,
c.2 (C.52:27D-304.1) is amended to read as follows:

���� 3. a. The Council on
Affordable Housing, established by the "Fair Housing Act," P.L.1985,
c.222 (C.52:27D-301 et al.), is abolished.� Each municipality shall determine
its municipal present and prospective obligations in accordance with the formulas
established in sections 6 and 7 of P.L.2024, c.2 (C.52:27D-304.2 and
C.52:27D-304.3) and may take into consideration the calculations in the report
published by the department in accordance with this section.�

���� b.��� Following the expiration
of the third round of affordable housing obligations on July 1, 2025, a
municipality shall have immunity from exclusionary zoning litigation if the
municipality complies with the deadlines established in P.L.2024, c.2
(C.52:27D-304.1 et al.) for both determining present and prospective
obligations and for adopting a housing element and fair share plan to meet
those obligations.�

���� (1) Immunity from exclusionary
zoning litigation shall not limit the ability of an interested party to
challenge a municipality for failure to comply with the terms of its compliance
certification.� However, a municipality's actions to comply with the terms of
its compliance certification shall retain a presumption of validity if
challenged for an alleged failure described in this paragraph.

���� (2) Immunity from exclusionary
zoning litigation shall not limit the ability of an interested party to bring a
challenge before the program alleging that, despite the issuance of compliance
certification, a municipality's fair share obligation, fair share plan, housing
element, or ordinances implementing the fair share plan or housing element are
in violation of the Mount Laurel doctrine.� However, the decisions of the
program shall retain a presumption of validity if challenged for an alleged
violation described in this paragraph.

���� c.���� Prior to the beginning
of each new 10-year round of housing obligations beginning with the fourth
round on July 1, 2025, the Department of Community Affairs shall conduct a
calculation of regional need and municipal present and prospective obligations
in accordance with the formulas established in sections 6 and 7 of P.L.2024,
c.2 (C.52:27D-304.2 and C.52:27D-304.3).

���� d.��� For the fourth round of
affordable housing obligations, the department shall prepare and submit a
report to the Governor, and, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), to the Legislature providing a report on the calculations of
regional need and municipal obligations for each region of the State within the
earlier of seven months following the effective date of P.L.2024, c.2
(C.52:27D-304.1 et al.) or December 1, 2024.� To assist in this calculation,
the Highlands Water Protection and Planning Council shall provide a list of
Highlands-conforming municipalities to the department no less than five
business days following the effective date of P.L.2024, c.2 (C.52:27D-304.1 et
al.).� The department shall provide the report to each municipality in the
State at the same time that it submits the report to the Governor and
Legislature and shall also publish such report on the department's Internet
website.� For the fifth round, and each subsequent new round of housing
obligations, the department shall prepare and submit a report to each
municipality in the State, the Governor, and, pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1), to the Legislature on these calculations on or
before August 1 of the year prior to the start of the new round and shall also
publish such report on the department's Internet website.� For each 10-year
round of housing obligations, a municipality may take into consideration the
calculations in the report prepared by the department pursuant to this
subsection in determining its present and prospective obligations.

���� e.���� Nothing in the
provisions of subsections c., d., or f. of this section shall be interpreted to
render any calculation in a report by the department published pursuant to this
section binding on any municipality or other entity, nor to render any failure by
the department to timely conduct the calculations or publish a report required
by this section to alter the deadlines or process set forth in this section.�
The ultimate determination of a municipality's present and prospective need
shall be through the process as set forth below.

���� f. (1) (a) With consideration
of the calculations contained in the relevant report published by the
department pursuant to this section, for each 10-year round of affordable
housing obligations beginning with the fourth round, a municipality shall
determine its present and prospective fair share obligation for affordable
housing in accordance with the formulas established in sections 6 and 7 of
P.L.2024, c.2 (C.52:27D-304.2 and C.52:27D-304.3) by resolution, which shall
describe the basis for the municipality's determination and bind the
municipality to adopt a housing element and fair share plan pursuant to
paragraph (2) of this subsection based on this determination as may be adjusted
by the program as set forth in this subsection.

���� (b) For the fourth round of
affordable housing obligations, this determination of present and prospective
fair share obligation shall be made by binding resolution no later than January
31, 2025.� After adoption of this binding resolution, the municipality shall
file an action regarding the resolution with the program no later than 48 hours
following adoption.� The resolution, along with the date of filing with the
program, shall be published on the program's publicly accessible Internet
website.� The municipality shall also publish the resolution on its publicly
accessible Internet website, if the municipality maintains one.� If the
municipality does not meet this deadline, it shall lose immunity from
exclusionary zoning litigation until such time as the municipality is
determined to have come into compliance with the "Fair Housing Act,"
P.L.1985, c.222 (C.52:27D-301 et al.) and the Mount Laurel doctrine.� A
determination of the municipality's present and prospective obligation may be
established before a county-level housing judge as part of any resulting
declaratory judgment action pursuant to section 13 of P.L.1985, c.222
(C.52:27D-313), as amended by P.L.2024, c.2 (C.52:27D-304.1 et al.), or
through� exclusionary zoning litigation.� If the municipality meets this
January 31 deadline, then the municipality's determination of its obligation
shall be established by default and shall bear a presumption of validity
beginning on March 1, 2025, as the municipality's obligation for the fourth
round, unless challenged by an interested party on or before February 28,
2025.� The municipality's determination of its fair share obligation shall have
a presumption of validity, if established in accordance with sections 6 and 7
of P.L.2024, c.2 (C.52:27D-304.2 and C.52:27D-304.3), in any challenge
initiated through the program.� An interested party may file a challenge with
the program, after adoption of the binding resolution and prior to March 1,
2025, alleging that the municipality's determination of its present and prospective
obligation does not comply with the requirements of sections 6 and 7 of
P.L.2024, c.2 (C.52:27D-304.2 and C.52:27D-304.3).� For the fifth round, and
each subsequent new round of housing obligations, the deadlines established in
this subparagraph shall be on the last day of January, the last day of
February, and the first day of March, respectively, of the year of the start of
each new round.

���� (c) The Administrative
Director of the Courts shall establish procedures for the program to consider a
challenge and resolve a dispute initiated by an interested party pursuant to
subparagraph (b) of this paragraph.� To resolve a challenge, the program shall
apply an objective assessment standard to determine whether or not the
municipality's calculation of its obligation is compliant with the requirements
of sections 6 and 7 of P.L.2024, c.2 (C.52:27D-304.2 and C.52:27D-304.3).� Any
challenge must state with particularity how the municipal calculation fails to
comply with sections 6 and 7 of P.L.2024, c.2 (C.52:27D-304.2 and
C.52:27D-304.3) and include the challenger's own calculation of the fair share
obligations in compliance with sections 6 and 7 of P.L.2024, c.2
(C.52:27D-304.2 and C.52:27D-304.3).� The program shall establish procedures to
summarily dismiss any objection or challenge that does not meet these minimum
standards.� For the purpose of efficiency, the program shall, in its own
discretion, permit multiple challenges to the same municipal determination to
be consolidated.� The program's approach to resolving a dispute may include:
(i) a finding that the municipality's determination of its present and
prospective need obligation did not facially comply with the requirements of
sections 6 and 7 of P.L.2024, c.2 (C.52:27D-304.2 and C.52:27D-304.3) and thus
the municipality's immunity shall be revoked; (ii) an adjustment of the
municipality's determination of its present and prospective need obligation to
comply with the requirements of sections 6 and 7 of P.L.2024, c.2
(C.52:27D-304.2 and C.52:27D-304.3) without revoking immunity; or (iii) a
rejection of a challenge and affirm the municipality's determination.� The
decision shall be provided to the municipality and all parties that have filed
challenges no later than March 31 of the year when the current round is
expiring and the new round is beginning and concurrently posted on the
program's Internet website.� The Administrative Director of the Courts shall
establish procedures for any further appellate review of such determinations
and may establish an expedited process for consolidated review of any such
challenges by the Supreme Court, provided that any party seeking appellate
review shall not change the deadlines established for municipal filing of a
housing element and fair share plan, and implementing ordinances.

���� (2) (a) A municipality shall
adopt a housing element and fair share plan as provided for by the "Fair
Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), and propose drafts of
the appropriate zoning and other ordinances and resolutions to implement its
present and prospective obligation established in paragraph (1) of this
subsection on or before June 30, 2025.� After adoption of the housing element
and fair share plan, and the proposal of drafts of the appropriate zoning and
other ordinances and resolutions, the municipality shall within 48 hours of
adoption or by June 30, 2025, whichever is sooner, file the same with the
program as part of the action initiated pursuant to subparagraph (b) of
paragraph (1) of this subsection through the program's Internet website.� Any
municipality that does not do so by June 30, 2025, shall not retain immunity
from exclusionary zoning litigation until such time as the municipality is
determined to have come into compliance with the "Fair Housing Act,"
P.L.1985, c.222 (C.52:27D-301 et al.) and the Mount Laurel doctrine and shall
be subject to review through the declaratory judgment process as established in
paragraph (3) of this subsection.� As part of its housing element and fair
share plan, the municipality shall include an assessment of the degree to which
the municipality has met its fair share obligation from the prior rounds of
affordable housing obligations as established by prior court approval, or
approval by the council, and determine to what extent this obligation is
unfulfilled or whether the municipality has credits in excess of its prior
round obligations.� If a prior round obligation remains unfulfilled, or a
municipality never received an approval from court or the council for any prior
round, the municipality shall address such unfulfilled prior round obligation
in its housing element and fair share plan.� Units included as part of the
municipality's unfulfilled prior round obligation shall not count towards the
cap on units in the municipality's prospective need obligation.� In addressing
prior round obligations, the municipality shall retain any sites that, in
furtherance of the prior round obligation, are the subject of a contractual
agreement with a developer, or for which the developer has filed a complete
application seeking subdivision or site plan approval prior to the date by
which the housing element and fair share plan are required to be submitted, and
shall demonstrate how any sites that were not built in the prior rounds
continue to present a realistic opportunity, which may include proposing
changes to the zoning on the site to make its development more likely, and
which may also include the dedication of municipal affordable housing trust
fund dollars or other monetary or in-kind resources.� The municipality shall
only plan to replace any sites planned for development as provided by a prior
court approval, settlement agreement, or approval by the council, with
alternative development plans, if it is determined that the previously planned
sites no longer present a realistic opportunity, and the sites in the
alternative development plan provide at least an equivalent number of
affordable units and are otherwise in compliance with the "Fair Housing
Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the Mount Laurel
doctrine.� If a municipality proposes to replace a site for which a complete
application seeking subdivision or site plan approval has not been filed prior
to the date by which the housing element and fair share plan is required to be
submitted, there shall be a rebuttable presumption in any challenge filed to
the municipality's plan that any site for which a zoning designation was
adopted creating a realistic opportunity for the development of a site prior to
July 1, 2020, or July 1 of every 10th year thereafter, as applicable, may be
replaced with one or more alternative sites that provide a realistic
opportunity for at least the same number of affordable units and is otherwise
in compliance with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301
et al.) and the Mount Laurel doctrine.� To the extent a municipality has
credits, including bonus credits, from units created during a prior round that
are otherwise permitted to be allocated toward the municipality's unfulfilled
prior round obligation or present or prospective need obligation in an upcoming
round, the municipality shall be entitled to rely on the rules, including rules
for bonus credits, applicable for the round during which those credits were
accumulated.� If a municipality has credits in excess of its prior round
obligations, and such excess credits represent housing that will continue to be
deed-restricted and affordable through the current round, the municipality may
include such housing, and applicable bonus credits, towards addressing the
municipality's new calculation of prospective need.� Consistent with subsection
k. of section 11 of P.L.1985, c.222 (C.52:27D-311), the total number of bonus
credits shall in no circumstance exceed 25 percent of the municipality's
prospective obligation in any round.� The municipality may in its plan lower
its prospective need obligation to the extent necessary to prevent establishing
a prospective need obligation that requires the municipality to provide a
realistic opportunity for more than 1,000 housing units, after the application
of any excess credits, or to prevent a prospective need obligation that
[
exceeds 20
percent of the total number of households in a municipality according to the
most recent federal decennial census, not including any prior round obligation
]

would
result in an increase of the municipal population by more than five percent in
any 10-year period.� For the purposes of this population increase cap, each
unit of affordable housing shall be deemed to be occupied by four residents,
except that units of housing for seniors shall be deemed to be occupied by two
residents
.� If a municipality is subject to both a 1,000 unit cap
[
or 20 percent
]

and
population increase
cap, it may apply whichever cap results in a lower
prospective need obligation.� For the fifth round, and for each subsequent new
round of housing obligations, the deadlines in this paragraph shall be June 30
for the adoption of the housing element and fair share plan, and the proposal
of drafts of the appropriate zoning and other ordinances and resolutions to
implement its present and prospective obligation, of the year of the start of
the new round.

���� (b) Following the filing, in
an action, of an adopted housing element and fair share plan pursuant to
subparagraph (a) of this paragraph, an interested party may file a response on
or before August 31, 2025 alleging that the municipality's fair share plan and
housing element are not in compliance with the "Fair Housing Act,"
P.L.1985, c.222 (C.52:27D-301 et al.) or the Mount Laurel doctrine.� Such
allegation shall not include a claim that a site on real property proposed by
the interested party is a better site than a site in the plan, but rather shall
be based on whether the housing element and fair share plan as proposed is
compliant with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301
et al.) or the Mount Laurel doctrine.� To resolve a challenge, the program
shall apply an objective assessment standard to determine whether or not the
municipality's housing element and fair share plan is compliant with the
"Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the
Mount Laurel doctrine.� Any interested party that files a challenge shall
specify with particularity which sites or elements of the municipal fair share
plan do not comply with the "Fair Housing Act," P.L.1985, c.222
(C.52:27D-301 et al.) or the Mount Laurel doctrine, and the basis for alleging
such non-compliance.� The program shall establish procedures to summarily
dismiss any objection or challenge that does not meet these minimum standards.�
For the purpose of efficiency, the program shall, in its own discretion, permit
multiple challenges to the same municipal housing element and fair share plan
to be consolidated.� If a municipality's fair share plan and housing element is
not challenged on or before August 31, 2025, then the program shall apply an
objective standard to conduct a limited review of the fair share plan and
housing element for consistency and to determine whether it enables the
municipality to satisfy the fair share obligation, applies compliant
mechanisms, meets the threshold requirements for rental and family units, does
not exceed limits on other unit or category types, and is compliant with the
"Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the
Mount Laurel doctrine.� The program shall issue a compliance certification
unless these objective standards are not met.� The program shall facilitate
communication between the municipality and any interested parties for a
challenge and provide the municipality until December 31, 2025 to commit to
revising its fair share plan and housing element in compliance with the changes
requested in the challenge, or provide an explanation as to why it will not
make all of the requested changes, or both.� Upon resolution of a challenge,
the program shall issue compliance certification, conditioned on the
municipality's commitment, as necessary, to revise its fair share plan and
housing element in accordance with the resolution of the challenge.� The
program may also terminate immunity if it finds that the municipality is not
determined to come into constitutional compliance at any point in the process.�
If by December 31, 2025 the municipality and any interested party that filed a
response have resolved the issues raised in the response through agreement or
withdrawal of the filing, then the program shall review the fair share plan and
housing element for consistency and to determine whether it is compliant with
the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and the
Mount Laurel doctrine and issue a compliance certification unless these
objective standards are not met.� For the fifth round, and each subsequent new
round of housing obligations, the deadline established in this subparagraph for
an interested party to file a challenge shall be August 31, and for the
municipality to revise its housing element and fair share plan in response,
shall be December 31 of the year of the beginning of the new round.�

���� (c)� For the fourth round of
affordable housing obligations, the implementing ordinances and resolutions,
proposed pursuant to subparagraph (a) of this paragraph, and incorporating any
changes from the program, shall be adopted on or before March 15, 2026.� For
the fifth round, and each subsequent new round of housing obligations, the
deadline established in this subparagraph for the implementing ordinances and
resolutions shall be on March 15 of the year following the beginning of the new
round.� After adoption of the implementing ordinances and resolutions by the
municipality, the municipality shall immediately file the ordinances and
resolutions with the program through the program's Internet website.� Failure
to meet the March 15 deadline shall result in the municipality losing immunity
from exclusionary zoning litigation.

���� (d)� The program may permit a
municipality that still has a remaining dispute by interested parties to retain
immunity from exclusionary zoning litigation into the year following the year
in which a new round begins if the program, or county-level housing judge,
determines that the municipality has been unable to resolve the issues disputed
despite being determined to come into constitutional compliance.� The
Administrative Director of the Courts shall develop procedures to enable a
county-level housing judge to resolve this dispute over the issuance of
compliance certification through a summary proceeding in Superior Court
following the year in which the new round begins.� A judge shall be permitted
to serve as a county-level housing judge for more than one county in the same
vicinage.� The pendency of such a dispute shall not stay the deadline for
adoption of implementing ordinances and resolutions pursuant to this
paragraph.� The implementing ordinances and resolutions adopted prior to the
resolution of the dispute may be subject to changes to reflect the results of
the dispute.� As an alternative to adopting all necessary implementing
ordinances and resolutions by the March 15 deadline, a municipality involved in
a continuing dispute over the issuance of compliance certification may adopt a
binding resolution by this date to commit to adopting the implementing
ordinances and resolutions following resolution of the dispute, with necessary
adjustments to reflect the resolution of the dispute.

���� (e)� Once a municipality has
received a compliance certification or otherwise has had its fair share
obligation and housing element and fair share plan finally determined via
judgment of repose or other judgment, the municipality shall make the municipality's
fair share plan and housing element, as well as any subsequently adopted
implementing ordinances and resolutions, or amendments thereto, available to
the department and the program for publication on the department's and
program's respective Internet websites.

���� (3)� (a)� If a municipality
fails to materially adhere to any of the deadlines established in paragraphs
(1) or (2) of this subsection due to circumstances beyond the control of the
municipality, including, but not limited to, an inability to meet a deadline
due to an extreme weather event, then the program, or the county level housing
judge, in accordance with court rules, may permit a municipality to have a
grace period to come into compliance with the timeline, the length of which,
and effect of which on later deadlines, shall be determined on a case-by-case
basis.

���� (b)� A municipality that has
not adopted and published a binding resolution pursuant to paragraph (1) of
this subsection or that has not adopted and filed a housing element and fair
share plan pursuant to paragraph (2) of this subsection may seek compliance
certification by filing an action pursuant to section 13 of P.L.1985, c.222
(C.52:27D-313), provided that any exclusionary zoning litigation filed by a
plaintiff against such a municipality prior to such time may proceed
notwithstanding such filing.� In a municipality that has adopted and published
a binding resolution pursuant to paragraph (1) of this subsection and has
adopted and filed a housing element and fair share plan pursuant to paragraph
(2) of this subsection, a court shall not consider exclusionary zoning
litigation during the timeframe after the timely submission of a binding
resolution or fair share plan and housing element of a municipality, or both,
and before a challenge is submitted, or during the timeframe of a challenge
that is pending resolution with the program pursuant to this subsection.� A
court may� consider exclusionary zoning litigation after such timeframe upon a
finding that the municipality: (i) is determined to be constitutionally
noncompliant with its responsibilities pursuant to the "Fair Housing
Act," P.L.1985, c.222 (C.52:27D-301 et al.) or is participating in the
program in bad faith; (ii) has failed to meet the deadlines established
pursuant to P.L.2024, c.2 (C.52:27D-304.1 et al.); or (iii) has, after receiving
compliance certification, failed to comply with the terms of that certification
by not actually allowing for the development of the affordable housing as
provided for in its fair share plan and housing element through actions or
omissions, or both, of a municipality or its subordinate boards.�

���� (c)� All parties shall bear
their own fees and costs in proceedings before the program.�

���� (d)� A determination by the
program as to the present and prospective need obligation or as to issuance of
compliance certification pursuant to this section shall be considered a final
decision, subject to appellate review pursuant to the procedures set forth in
subparagraph (c) of paragraph (1) of subsection f. of this section.

���� (e)� A municipality shall not
be deemed out of compliance with the deadlines of P.L.2024, c.2 (C.52:27D-304.1
et al.), or lose immunity from exclusionary zoning litigation, due to a failure
by the program to promptly maintain and update its Internet website or other
operational failure of the program.

���� g.� A compliance
certification, issued pursuant to P.L.2024, c.2 (C.52:27D-304.1 et al.), shall
be accompanied by a written report that shall set forth the basis of the
issuance of the certification and shall be in a format to be developed and
approved by the Administrative Director of the Courts.

(cf: P.L.2024, c.2, s.3)

���� 3.� (New section)� The
Department of Environmental Protection shall, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and
regulations, by the first day of the seventh month next following enactment, to
guide determinations of flood-prone lands excluded from available land
resources for affordable housing purposes pursuant to section 1 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill).

���� 4.��� This act shall take
effect immediately, but section 1 of this act shall remain inoperative until
the first day of the seventh month next following enactment.

STATEMENT

���� This bill provides that a
municipality is not required to authorize construction of non-redevelopment
housing projects on undeveloped land.

���� Additionally, this bill caps
the number of units a municipality may have allocated as its fair share
affordable housing obligation with regard to the size of the municipal
population.� Current law provides, with certain exceptions, that no
municipality shall be required to address a fair share of affordable housing
units that exceeds 1,000 low- and moderate-income units within 10 years from
the grant of substantive certification, or 20 percent of the total number of
households in a municipality.� In order to prevent the disparate impact such a
potentially large affordable housing mandate can create for municipalities with
small populations, this bill replaces the 20 percent cap on increases in the
number of households, providing instead that an allocation of units to a
municipality as its fair share shall not exceed an amount that would result in
an increase of the municipal population by more than five percent.

���� This bill would also exclude
from determinations of available land resources for affordable housing purposes
any land that is: (1) lower than the most recent "flood elevation
determination," measured under federal standards, (2) lower than the
applicable flood elevation standard required under regulations adopted pursuant
to the "Flood Hazard Area Control Act," P.L.1962, c.19 (C.58:16A-50
et seq.), or (3) within 100 feet of category one waters, as designated by the
Department of Environmental Protection.� As defined under federal regulation, 44
C.F.R. s.59.1, a "flood elevation determination" refers to a
determination by the Federal Insurance Administrator of the water surface
elevations of a �base flood,� also understood as a flood level that has a one
percent or greater chance of occurrence in any given year.

���� This bill directs the
Department of Environmental Protection to adopt rules and regulations to guide
determinations of flood-prone lands by the first day of the seventh month next
following enactment.� Specified portions of the bill are to remain inoperative
until the first day of the seventh month next following enactment.