Requires HMFA to establish "Sustainable Tiny Home Pilot Program" in three regions of State; appropriates $5 million.

This bill proposes a 3-year pilot program through New Jersey's Housing and Mortgage Finance Agency (HMFA) to develop sustainable tiny homes under 300 square feet in three regions of the state (northern, central, and southern). It appropriates $5 million total ($1.65 million annually) to fund grants for builders constructing these homes, requiring compliance with green building standards and reporting on recycled construction waste. Participating municipalities must temporarily relax zoning rules to allow tiny home developments, with the goal of reducing carbon emissions (tiny homes produce ~93% less CO2 than standard homes) and construction waste. The program targets builders, eligible municipalities, and future residents of these affordable, eco-friendly housing units.