Establishes process to exempt municipality from certain fair share affordable housing obligations based on flood risk.

This bill creates a new exemption process for New Jersey municipalities facing severe flood risks, allowing them to avoid affordable housing requirements under the Fair Housing Act (P.L.1985, c.222). Municipalities designated as "extensively flood-prone" would be exempt from all current and future fair share housing obligations, including past unfulfilled commitments. The exemption would be determined by the Commissioner of Community Affairs using specific flood risk data, such as property owners' flood insurance costs and the number of repetitive flood-damaged properties relative to the municipality's size. This adds flood risk as a new factor - alongside existing considerations like historic preservation - to determine housing obligation exemptions.