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

This bill creates a preference in New Jersey state funding for municipalities that adopt specific housing strategies to increase residential density. Municipalities must amend their master plans and development regulations to allow for options like accessory dwelling units, multi-unit buildings in single-family zones, reduced parking requirements, and higher density housing near transit. Qualifying municipalities would receive preferential treatment in competitive state grant programs, including the Main Street New Jersey Program and Neighborhood Preservation Program. The bill also allows school districts in qualifying municipalities to receive up to a 10% increase in district aid percentages for school facilities projects.