NJ A1616

Establishes the "Sustainable Tiny Home Pilot Program" as a 3-year initiative through the New Jersey Housing and Mortgage Finance Agency to encourage construction of permanent dwelling units with no more than 300 square feet of interior floor space

Appropriates $5 million from the General Fund, with $1.65 million in grants to be distributed annually to builders constructing tiny home developments that meet green building standards equivalent to LEED certification

Requires the Executive Director to select 1-2 municipalities in each of the northern, central, and southern regions of New Jersey to participate as pilot communities

Declares eligible tiny home projects as permitted uses in all residential districts of pilot municipalities, exempting them from bulk variance requirements under local zoning laws

Mandates annual reporting to the Governor and Legislature on program outcomes, including construction waste generated, utility costs of completed units, and the effectiveness of financial incentives for builders