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

This bill creates a three-year pilot program through New Jersey's state housing agency to fund sustainable tiny home construction. It appropriates $5 million total ($1.65 million annually) to award grants to builders for developing tiny home communities (each under 300 sq ft) in selected municipalities across northern, central, and southern New Jersey. Builders must follow green building standards, report recycled construction waste (in cubic yards), and include energy-efficient features. The program requires participating towns to temporarily relax zoning rules to enable tiny home projects, aiming to reduce carbon emissions and construction waste compared to traditional housing.