Establishing a revolving loan fund for mixed-income affordable homeownership development.

SB 6028 creates a revolving loan fund administered by the Washington State Housing Finance Commission to support mixed-income housing developments where a portion of units are permanently affordable for low-income households (defined as those earning under 80% of the county median income). The fund provides loans to eligible developers (nonprofits, for-profits, public agencies) up to $5 million or 50% of project costs, requiring all affordable units to be sold/resold only to low-income households for at least 99 years via deed restrictions. Repaid loans and interest are recycled into new projects, with geographic limits of $5 million per county per funding round to ensure statewide distribution. The bill mandates strict monitoring to verify affordability compliance and penalties for noncompliance, including repayment of full loans plus interest for unmet affordability targets.