Expands conditions for areas in need of redevelopment to include sites designated by municipality for affordable housing under certain circumstances.

This bill allows New Jersey municipalities to designate specific sites as areas in need of redevelopment if those sites are officially planned for affordable housing in the town's housing element and fair share plan. To qualify, the site must be designated for inclusionary development that includes both market-rate and affordable housing, or exclusively affordable housing, and the plan must have been approved by a court to meet the municipality's legal housing obligations. The change expands the existing redevelopment law to enable these housing-focused areas to access redevelopment powers, such as tax exemptions and abatements, under the same conditions as other blighted or underutilized zones. Local governments would use this provision to address housing shortages by legally classifying planned affordable housing projects as redevelopment areas.