Permits certain portion of municipal development trust funds to be spent on housing affordability assistance to veterans.

This bill allows New Jersey municipalities to use up to 30% of their municipal development fee trust funds - designated for affordable housing programs - to provide down payment assistance grants to first-time veteran homebuyers, with each veteran eligible for up to $15,000 per grant. The grants will not be counted as income for determining eligibility for other state benefits or for tax purposes. This policy change directs existing municipal funds toward supporting veterans in purchasing homes, supplementing other state housing assistance programs without creating new funding.