CAFRA applies to development activities that are:

The correct answer is based on the delineation of the Coastal Area Facility Review Act (CAFRA) regulations in New Jersey. CAFRA specifically focuses on managing and regulating development activities in coastal areas that are subject to tidal actions, which essentially means areas influenced by ocean tides, as well as coastal lands within a specified buffer distance from these tidal zones. The requirement of considering lands within 150 feet of the mean high water line is particularly relevant, as this proximity emphasizes the act's intent to protect coastal environments from the effects of development, such as erosion, habitat disruption, and water quality degradation.

The context of the other options highlights why they don't align with CAFRA's objectives. The mention of COAH (Council on Affordable Housing) in one of the options pertains to housing regulations and does not intersect with the coastal management goals of CAFRA. Similarly, discussions about HDMC (Highlands Development Credit) areas or floodplain regulations for freshwater bodies would fall under different regulatory frameworks and do not address the specifics of CAFRA's focus on coastal tidal zones and buffer areas. Thus, the selection of the first option directly relates to the fundamental purposes of CAFRA in safeguarding coastal resources and regulating development that might adversely affect tidal ecosystems.