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Would've just said you need to have both the Steam user AND the device authorized. Most people only do either or.
If (s)he wants your library, you go on his/her computer with your Steam -account. You go under [Steam > Settings > Family] and authorize his/her computer.
Then you tick his/her Steam user from the tickbox list below as eligible.
That way (s)he's one of the (up to 5) Steam users who can access your library on any of the (up to 10) authorized devices, of which his/her device should be one of.
Then the other way around for you to gain access to their library.