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

This bill creates a process for New Jersey municipalities to be exempt from affordable housing obligations if designated as "extensively flood-prone." The Council on Affordable Housing would determine exemption eligibility based on flood insurance data, repetitive flood loss properties relative to municipality size, and other relevant information. Qualifying municipalities would be exempt from current and future affordable housing obligations, including past unfulfilled requirements under the Fair Housing Act. This change modifies the existing framework to account for flood risk as a factor in housing obligations.