Establishes process to exempt municipality from certain fair share affordable housing obligations based on flood risk.

This bill (S 3255) would allow New Jersey municipalities to be exempt from affordable housing obligations if designated as "extensively flood-prone" by the Commissioner of Community Affairs. It creates a process where municipalities meeting specific flood-risk criteria - based on flood insurance payments, repetitive loss properties, and other data - would no longer need to fulfill fair share housing requirements. The exemption covers all current, future, and past unfulfilled obligations under the Fair Housing Act (P.L.1985, c.222). The commissioner must adopt rules within three months of the bill's enactment to determine eligibility. This change directly affects municipalities facing significant flood risks, relieving them from housing construction mandates tied to flood vulnerability.