Be it enacted by the General Assembly of the State of Vermont that municipalities shall provide a streamlined permitting process for qualifying infill housing developments located in designated village centers, downtowns, and other existing settlement areas, provided such developments meet local health and safety requirements; that the State shall establish targeted grants and low-interest financing for workforce and affordable housing projects, with priority given to developments near jobs, schools, and transit; and that any state-funded housing incentive under this Act shall require compliance with baseline energy-efficiency, weatherization, and sustainable building standards established by the appropriate state agencies.