This bill establishes a state incentive program, administered in coordination with the Vermont Housing Finance Agency, to provide grants and tax credits for the construction or rehabilitation of affordable rental and ownership housing within designated town centers and near existing public transit. Eligible projects must meet state energy-efficiency standards, incorporate climate-resilient features such as flood protection and heat-pump systems, and maintain affordability requirements for qualifying Vermont households. Priority shall be given to projects that reuse existing buildings, limit displacement, and expand housing opportunities in communities with documented needs.