Allows projects supported by State or municipal affordable housing trust fund to be exempt from property tax and to instead contribute to municipal services by making payments in lieu of taxation.

This bill would allow affordable housing projects funded by New Jersey's State or municipal affordable housing trust funds to be exempt from property taxes. Instead, housing sponsors would make annual payments to municipalities based on up to 20% of the project's gross revenue. The tax exemption would last until the project's eligible loan is paid in full, with agreements between housing sponsors and municipalities requiring review by the Commissioner of Community Affairs. This policy aims to support affordable housing development while ensuring municipalities still receive revenue for services. The bill specifically applies to housing projects meeting affordability requirements under state or federal programs.