NJ A1278

Amends the Fair Housing Act to add definitions for "present need" (deficient housing units occupied by low/moderate income households) and "gap period" (time between expiration of one housing cycle obligation and commencement of the next 10-year prospective need period)

Explicitly prohibits municipalities from being required to include retrospective calculations of affordable housing needs from "gap periods" when determining their fair share obligations

Limits municipal fair share determinations to 10-year prospective periods only, eliminating potential obligations for housing needs that arose during the 15+ year period when the state provided no clear compliance guidelines

Responds to court decisions that sponsors argue misinterpreted legislative intent by imposing retroactive affordable housing obligations on municipalities

Maintains existing provisions allowing credits for current low/moderate income housing units and caps of 1,000 units within 10 years unless specific growth thresholds are met