Establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.

This bill creates a system where municipalities that update their zoning regulations to allow for more housing options receive priority for state funding. Municipalities that adopt specific housing strategies - such as permitting accessory dwelling units, reducing parking requirements, or allowing multi-unit developments in commercial zones - can qualify for preference in state grants, including the Main Street New Jersey Program and Neighborhood Preservation Program. School districts in these municipalities may also receive up to a 10% increase in state aid for school construction projects. The bill requires municipalities to review and potentially amend their master plans and zoning regulations to incorporate these housing strategies, with planning boards required to report findings and recommend changes.