This bill establishes a new revolving loan fund within the Washington State Department of Commerce aimed at financing mixed-income affordable homeownership developments. The fund will provide loans to eligible organizations, including nonprofit and for-profit developers, public housing authorities, and public development authorities, to create residential units that are permanently affordable for low-income households. The Washington State Housing Finance Commission will administer the fund, ensuring that loans are awarded based on specific criteria such as readiness for construction, the amount of public and private funding leveraged, and the qualifications of the applicants. The bill mandates that the homeownership housing 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 outlines the terms and conditions for the loans, including limits on the loan amounts, interest rates, and repayment timelines. It requires the commission to monitor the affordability of the housing units and implement auditing processes to ensure compliance with affordability commitments. If developers fail to meet their obligations, they may face penalties, including repayment of the loan amount plus interest. The bill emphasizes geographic distribution of funding and mandates reporting requirements for loan recipients to track the development of affordable housing units. Overall, this legislation aims to enhance affordable homeownership opportunities for low-income families in Washington State.