H.253 is a proposed bill aimed at advancing Vermont's housing and climate goals while promoting economic growth. The bill establishes a revolving fund at the Vermont Housing Finance Agency (VHFA) to incentivize the development of affordable, climate-friendly modular housing. This fund will support bulk purchasing of homes produced through off-site construction, aiming to lower costs for single-family and multifamily housing. Additionally, the bill introduces a new designation called "workforce housing zones," which are geographic areas defined by their proximity to job centers, and outlines criteria for energy efficiency and affordability for the homes developed within these zones.

The bill also seeks to enhance public water and wastewater systems in workforce housing zones by prioritizing state funding for these projects. The Agency of Natural Resources is tasked with studying the existing infrastructure and identifying barriers to the development of municipal systems, as well as exploring innovative wastewater treatment options. Furthermore, the bill proposes adjustments to jurisdiction thresholds under existing land use laws to facilitate housing development in these designated zones, thereby streamlining the process for creating new housing projects.