Bill H.498 aims to amend various provisions of Title 24 to prohibit municipalities from enacting civil or criminal ordinances that would criminalize life-sustaining activities such as sleeping, camping, resting, or loitering on municipal property. However, it allows municipalities to implement ordinances that restrict these activities when adequate shelter is available. The bill also establishes a State-funded grant program to support municipal initiatives addressing homelessness, including mental health care, addiction treatment, job training, and partnerships with nonprofit organizations to provide housing solutions. Additionally, it proposes the creation of humanitarian zones in public spaces for unhoused individuals to access essential services.

Furthermore, the bill seeks to enhance affordable housing efforts by providing tax incentives for developers, enacting rent stabilization and eviction protections, and appropriating funds for the construction of affordable housing units. It mandates that municipalities incorporate homelessness strategies into their planning processes and allows for grants to assist in these efforts. Annual reporting requirements for municipalities and State agencies regarding homelessness status and the effectiveness of implemented measures are also included. Lastly, a task force will be established to oversee the implementation of the bill's proposals, ensuring a collaborative approach to addressing homelessness in Vermont.