The bill proposes the creation of the Housing Production Revolving Fund Act, which involves the establishment of a new fund to promote the development of affordable housing. The Department of Housing is authorized to issue $50 million in housing bonds with a maturity of up to 20 years to create this fund. The fund will be used for debt service on the housing bonds and to finance real estate projects by public developers, including public housing authorities and other public agencies. The fund will consist of the proceeds from the issuance of the housing bonds, an annual appropriation from the general assembly for debt service not exceeding $500,000 per year, repayments of loans from the fund, and any other money from gifts, grants, or donations.

The Department of Housing will also develop a program to ensure a portion of housing units in projects are affordable. Public developers applying for assistance must set aside at least 20% of housing units for households earning 50% or less of the area median income (AMI) and an additional 10% for households earning 80% or less of the AMI. The Department of Housing will administer the fund and establish necessary rules and regulations for its management and the implementation of the chapter's provisions. The act will take effect upon passage.