Excludes environmentally sensitive and flood-prone land from designation as vacant or available for purposes of affordable housing construction.

This bill requires New Jersey municipalities to exclude environmentally sensitive and flood-prone land from being counted as available for affordable housing construction. It specifically excludes land regulated by agencies like the Highlands Water Protection Council, flood hazard areas under the Flood Hazard Area Control Act, and wetlands protected by the Freshwater Wetlands Protection Act. The law changes current policy by removing the requirement that development must be "prohibited" on such land - now regulated land automatically qualifies for exclusion. This affects municipalities obligated to provide affordable housing under New Jersey's Fair Housing Act, preventing them from using these lands to meet their housing quotas.