The bill H.253 aims to enhance Vermont's housing policy by establishing a revolving fund at the Vermont Housing Finance Agency (VHFA) to promote the development of affordable, climate-friendly modular housing. This fund will facilitate bulk purchasing of homes produced through off-site construction, thereby lowering construction costs for single-family and multifamily housing. The VHFA will also set criteria for energy efficiency and affordability, and provide grants and technical assistance to businesses to expand off-site construction capabilities.

Additionally, the bill introduces a new designation called "workforce housing zones," which will be defined based on proximity to job centers, and will receive benefits similar to designated neighborhood development areas. The thresholds for jurisdiction under existing land use laws will be raised to encourage more housing development. Furthermore, the bill prioritizes funding for public water and wastewater systems in these zones and mandates a study by the Agency of Natural Resources to assess the feasibility of expanding these systems to support workforce housing.