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n a landmark move to address the enduring legacy of housing discrimination, Washington State has expanded its Covenant Homeownership Program (CHP) through the passage of House Bill 1696. This legislation, signed into law in April 2025, aims to increase Black homeownership and rectify historical injustices that have long hindered communities of color from accessing the American dream of homeownership.
Originally established in 2023, the CHP provides zero-interest loans to first-time homebuyers for down payments and closing costs. The program specifically targets individuals whose families were affected by racially restrictive housing covenants prior to 1968. Since its launch in July 2024, the program has facilitated the purchase of 247 homes across 20 counties, with an additional 54 loans in the pipeline, totaling $27.5 million in assistance.State Representative Jamila Taylor (D-Federal Way), the primary sponsor of both the original legislation and its recent expansion, emphasized the program’s role in addressing these disparities. “Expanding this program is a step toward closing the homeownership gap between Black and white households in our state,” Taylor stated. “It’s not the only solution to the systemic inequities caused by centuries of discrimination, but it is meaningful progress.”
The Covenant Homeownership Program is funded through a $100 document recording fee on real estate transactions, a mechanism designed to generate between $75 million and $100 million annually. This dedicated funding ensures that the program can sustainably support eligible homebuyers without relying on the state’s general fund.
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While the program has garnered widespread support, it has also faced legal challenges. Critics argue that its race-conscious eligibility criteria constitute reverse discrimination. However, supporters contend that the program is a necessary corrective measure to address the specific harms inflicted by past discriminatory policies.
As Washington continues to grapple with its history of housing discrimination, the expansion of the Covenant Homeownership Program represents a proactive effort to foster equity and inclusion in homeownership. By providing tangible support to those historically excluded from the housing market, the state takes a significant step toward dismantling systemic barriers and promoting economic justice for all its residents.
For more information on the Covenant Homeownership Program and eligibility requirements, visit the Washington State Housing Finance Commission’s website at wshfc.org/covenant.
