Affordable Housing Expansion Act of 2002

Affordable Housing Expansion Act of 2002 - Directs the Secretary of Housing and Urban Development to make funds available to State housing finance agencies for low-income housing rehabilitation and development. Obligates specified amounts for Indian tribes. Provides for: (1) a minimum State allocation; and (2) a 25 percent State matching requirement. Sets forth housing eligibility provisions.

Requires State submission of an affordable housing expansion plan.

Directs the Secretary to carry out a multifamily risk-sharing mortgage insurance program.

Amends the United States Housing Act of 1937 to authorize the use of section 8 project-based assistance for extremely low-income housing construction and rehabilitation. Limits assistance to: (1) 75 percent of the payment standard or applicable fair market rental; and (2) 25 percent of a building's units.

Authorizes reallocation of certain underused section 8 vouchers.

Directs the Department of Housing and Urban Development to maintain existing section 8 project-based assistance for any Department-owned or -held multifamily project upon disposition, unless the project is determined to be not viable.

Authorizes a public housing loan guarantee program.