The bill establishes a new revolving loan fund within the Washington State Department of Commerce aimed at financing mixed-income affordable homeownership developments. It defines key terms such as "eligible organizations," which include nonprofit and for-profit developers, and outlines the criteria for awarding loans to these organizations. The loans are intended to support projects that provide homeownership housing that remains permanently affordable for low-income households, defined as those with incomes below 80% of the median family income for their county. The bill mandates that the homeownership units financed must be sold and resold only to low-income households for a minimum of 99 years, with provisions for longer periods if deemed necessary.

Additionally, the bill includes provisions for the administration of the loan fund by the Washington State Housing Finance Commission, which will set criteria for loan eligibility and project readiness. It stipulates that loans cannot exceed $5 million or 20% of total project costs, and must be structured with below-market interest rates. The commission is tasked with monitoring the program's effectiveness, ensuring compliance with affordability requirements, and implementing penalties for non-compliance. The bill emphasizes geographic distribution of funding and prohibits the use of commission general funds for this program, ensuring that any interest earnings and repaid funds are reinvested into further affordable housing developments.