Allows projects supported by State or municipal affordable housing trust fund to be exempt from property tax and to instead contribute to municipal services by making payments in lieu of taxation.

This bill allows affordable housing projects funded by New Jersey's State or municipal affordable housing trust funds to be exempt from property taxes. Instead of paying property taxes, housing sponsors would make payments to municipalities equal to up to 20% of the project's annual gross revenue. These agreements between housing sponsors and municipalities must be reviewed by the Commissioner of Community Affairs and expire when the eligible loan for the project is paid in full. The policy directly affects housing developers, municipalities, and low-to-moderate income households who benefit from subsidized housing projects.