NJ A5434

Prohibits short-term rentals (such as Airbnb, HomeAway, FlipKey) of transient accommodations in exclusively residential zones unless specifically authorized by municipal zoning ordinance

Limits municipalities to designating no more than 25% of their total land area as eligible for short-term rental use within residential districts

Establishes civil penalties for violations: up to $250 for first offense, $500 for second offense, and $1,000 for third and subsequent offenses

Requires penalty revenues to be deposited into the municipality's affordable housing trust fund (after deducting enforcement costs), or to the State's New Jersey Affordable Housing Trust Fund if no local fund exists

Defines "transient accommodation" to include rooms obtained through online marketplaces or professionally managed units, while exempting traditional hotels, schools, hospitals, and leases of 90+ consecutive days