(1) By January 1, 2007, the Washington state housing finance commission shall create and implement a veteran homeownership downpayment assistance program to work in conjunction with the commission's housing finance programs. The program will assist the following individuals purchase a home:

(a) Washington state residents who are veterans, as defined by RCW 41.04.007;

(b) Members and former members of the Washington national guard and reserve; and

(c) Never remarried spouses and dependent children of deceased veterans, as defined by RCW 41.04.007.

(2) The commission shall adopt rules providing procedures to assure that the downpayment assistance program is available for qualified veterans in a fair and equitable manner.