Permits municipality to obtain affordable housing credit for each resident of alternative living arrangement.

This bill allows New Jersey municipalities to count residents in certain affordable housing settings toward their state-mandated affordable housing requirement. Specifically, a municipality earns one credit for each low- or moderate-income resident living in an "alternative living arrangement," defined as shared housing (like homeless transitional facilities, boarding homes, group homes, or residential health care) where residents share kitchens, plumbing, and common areas. The bill requires affordability controls on these arrangements to remain in place for at least 10 years. This provides municipalities with a new pathway to meet their housing obligations while expanding the types of qualifying housing units.