Authorizes municipal challenge to non-redevelopment housing projects ordered by COAH unless order is based on exclusionary zoning; excludes flood-prone land from affordable housing vacant land analysis; provides housing obligation cap.

This bill (S 2085) modifies New Jersey's affordable housing laws by granting municipalities the right to challenge non-redevelopment housing projects ordered by the Council on Affordable Housing (COAH) unless the order is based on exclusionary zoning. It also excludes flood-prone land from analysis used to determine available vacant land for affordable housing projects and establishes a cap on municipalities' housing obligations. The bill directly affects local governments (municipalities), COAH, and developers of housing projects, shifting authority to challenge certain developments and altering how vacant land is assessed for affordability requirements. Key provisions include clarifying "inclusionary development" standards and updating how municipalities calculate their housing obligations based on existing low/moderate-income units.