HUD Investigates Washington State Housing Program
The Department of Housing and Urban Development (HUD), under the Trump administration, announced on Tuesday that it is investigating a housing initiative in Washington state, suspecting that the program may be extending mortgage assistance based on race.
This inquiry is focused on the Covenant Homeownership Program, which the Washington State Housing Finance Commission was informed about this week. The program was introduced by the state’s Legislature in 2023 to address allegations of housing discrimination and determine how to rectify it. It aims to tackle historical racially restrictive housing codes that were rendered unenforceable after a Supreme Court ruling in 1948 and were declared invalid in 1969.
Initially designed for first-time homebuyers from marginalized communities, the program offers interest-free loans up to $150,000 to help with down payments and closing costs. Notably, repayment is deferred until the property is sold or refinanced, according to Seattle King County Realtors.
Washington Democrat Jamila Taylor, who supported the bill for the program, expressed concerns about systemic discrimination affecting homeownership for people of color in the state. She pointed out numerous instances of racially restrictive covenants, including redlining practices, which have been recorded in over 40,000 real estate deeds.
However, it’s worth mentioning that participants don’t need to be from low-income backgrounds; the income limit for the program is set at 120 percent of the area’s median income. Eligibility criteria require that an applicant have a parent or grandparent of Hispanic, Native American, Pacific Islander, or Indian descent. Strikingly, individuals of European, Japanese, Arab, and Jewish heritage don’t seem to qualify for the program.
HUD clarified that those interested must contact a “commission-trained lender” through a hotline to figure out their eligibility for this housing initiative.
HUD Secretary Scott Turner stated, “DEI is dead at HUD,” affirming that any violation of rights for political reasons will not go unchallenged. He expressed a strong commitment to enforcing the Fair Housing Act, ensuring equal opportunities for all Americans in their pursuit of homeownership.
While no final judgement has been made regarding the legality of the program under the Fair Housing Act, HUD mentioned that preliminary public information strongly suggests potential discriminatory practices. A spokesperson from the Washington State Housing Finance Commission indicated that they intend to cooperate with HUD’s investigation.
Washington is the latest state under scrutiny for alleged discriminatory housing practices, following similar investigations in cities like Minneapolis and Boston over their housing policies prioritizing individuals based on race and national origin.
