Washington’s Covenant Homeownership Program Expands to Address Racial Disparities
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NAACP - AOWSAC
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Washington State is taking significant steps to rectify its history of housing discrimination through the expansion of the Covenant Homeownership Program. This initiative, originally launched in 2024, aims to assist first time homebuyers from historically marginalized communities in overcoming barriers to homeownership.
In April 2025, Governor Bob Ferguson signed House Bill 1696 into law, enhancing the program’s reach and impact. Key changes include raising the income eligibility threshold from 100 percent to 120 percent of the Area Median Income (AMI) and introducing loan forgiveness for households earning 80 percent or less of the AMI who remain in their homes for at least five years. These adjustments are designed to make homeownership more accessible in Washington’s high cost real estate market.
Since its inception, the program has provided over 27 million dollars in down payment assistance, facilitating home purchases for more than 240 families across the state. Eligible applicants include individuals who are Black, Latino, Indigenous, Pacific Islander, Korean, or Asian Indian, or those with ancestors who lived in Washington before April 1968 and were affected by discriminatory housing practices.
While the program has garnered support for addressing systemic inequities, it has also faced criticism and legal challenges. Opponents argue that the program’s race specific criteria may violate anti-discrimination laws. However, supporters contend that the targeted approach is necessary to address the enduring effects of past injustices.
Washington’s expansion of the Covenant Homeownership Program is a bold and necessary step toward healing the deep wounds left by generations of housing discrimination. By investing in communities that have long been excluded from the dream of homeownership, the state is not just offering financial aid; it is offering justice. This initiative shows what is possible when policy is rooted in truth and equity. As more families unlock the doors to their new homes, they also open the door to opportunity, stability, and belonging.
Frequently Asked Questions
What is the Covenant Homeownership Program?
It is a Washington State initiative that provides down payment assistance to first time homebuyers from communities impacted by historic housing discrimination.
Who is eligible for the program?
Eligibility includes Black, Latino, Indigenous, Pacific Islander, Korean, and Asian Indian individuals, or anyone with ancestors who lived in Washington before April 1968 and faced housing discrimination.
What changes were made in 2025 to expand the program?
Income limits were raised to 120 percent of the Area Median Income, and a loan forgiveness option was introduced for lower income families who stay in their homes for five years.
Why is this program considered controversial by some?
Critics claim the race specific focus may violate anti-discrimination laws, while supporters argue that targeted remedies are essential to fix past injustices.
How much assistance has been provided so far?
Since its start, the program has delivered over 27 million dollars in down payment assistance and helped more than 240 families purchase homes across Washington.
Resources:
Washington State Housing Finance Commission – Covenant Homeownership Program
