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

This bill establishes a 3-year "Sustainable Tiny Home Pilot Program" through New Jersey's Housing and Mortgage Finance Agency (HMFA), appropriating $5 million total ($1.65 million annually) to fund construction of tiny home developments (max 300 sq ft) in three selected regions. It requires HMFA to award grants to builders who construct tiny homes meeting green building standards (aligned with LEED criteria), with recipients reporting on recycled construction waste and energy efficiency. The program aims to reduce carbon emissions - tiny homes produce ~2,000 lbs of CO₂ annually versus 28,000 lbs for standard homes - and makes eligible projects permitted uses in participating municipalities, temporarily suspending zoning restrictions. Municipalities must submit annual utility and waste data, and HMFA must report progress to the legislature, including recommendations on program continuation.