Requires developers of residential housing to provide low, moderate, and middle income housing or pay fee.

This bill requires developers building large residential projects (30+ units with high density) to reserve specific percentages of units for income-based housing: 5% very low income, 10% low income, 5% moderate income, and 5% middle income. Developers may instead pay a fee equal to 30% of the project cost (reduced to 25% for green-certified projects) to fund affordable housing through a municipal trust fund. All reserved housing units must remain affordable for at least 98 years, and municipalities must ensure at least 30% of these units are two-bedroom and 20% are three-bedroom. The fee funds either affordable housing development or community centers, depending on municipal choice. This directly affects developers of qualifying new housing projects in New Jersey.