This bill establishes an Affordable Housing Guaranteed Loan Program within the housing finance authority aimed at promoting affordable housing for low- and moderate-income individuals. The bill introduces new definitions for "affordable housing," "person of low income," "person of moderate income," and "person of very low income," which are crucial for determining eligibility for the program. The authority is tasked with adopting rules regarding the conduct of its business, the selection of eligible lenders, and the types of activities eligible for financing. Additionally, the authority is required to make a good faith effort to approve applications from lending organizations that provide loans for the creation or preservation of affordable housing.

The bill also outlines the guarantee process, allowing the authority to issue a certificate of guarantee equal to 80 percent of the principal due on loans, with a cap of $30 million per lender per fiscal year and an aggregate limit of $100 million in guaranteed loans annually. The full faith and credit of the state is pledged to support these guarantees, and the state treasurer is authorized to advance necessary funds to the authority. The act will take effect 60 days after its passage.