Establishing the local government housing fund and providing for the deposit of certain excess mortgage registry and deed tax proceeds into the fund; providing for allocation by the commissioner of trade and economic development (DTED) to certain cities and counties for low and moderate income housing; requiring the commissioner to cooperate with the commissioner of the housing finance agency (HFA) to ensure the consistency of grant applications with the state comprehensive housing assessment strategy and the local housing plan; exempting from the sales tax materials and supplies used in the construction or improvement of certain sales tax exempt housing projects, requiring payment and subsequent refund (mk)