Requires State to annually compensate certain municipalities for costs related to obligations for development of low- and moderate-income housing units.

S 3962 requires New Jersey to annually pay eligible municipalities $75,000 per low- or moderate-income housing unit they commit to under the state's Fair Housing Act. This compensation, paid to a separate "Local Infrastructure and Planning Fund," covers costs municipalities face from building infrastructure like schools, roads, and water systems due to new affordable housing developments. Municipalities must have certified housing plans (via the Fair Housing Act) to qualify, and funds can be used for infrastructure upgrades, planning services, or legal costs related to housing compliance. The payments are spread equally over 10 years per housing obligation round, starting in the first full year of the round (e.g., 2026 for the upcoming round).