6 days Ago By Aaron Washington
Two years after its inception, the Covenant Homeownership Program in Washington State has received a significant boost. Governor Ferguson signed the Second Substitute House Bill 1696, expanding the initiative that assists first-time homebuyers with zero-interest loans for down payments and closing costs. The legislation, brought forward by Rep.
Jamila Taylor and originally passed in 2023, saw the program launch the following year and has since enabled homeownership for over 200 families across more than 20 counties, as reported by the House Democrats.The homeownership gap in Washington is stark, with approximately 69% of white households owning homes compared to a mere 34% for Black households. The economic divide is also alarming, with the greatest disparity among those making less than $50,000 a year.
The expanded program targets these inequities, raising the income eligibility from 100% of the area median income (AMI) to 120%, and grants loan forgiveness after five years for those earning 80% or less of AMI. It also reshapes the Oversight Committee, now including a member from a nonprofit housing counseling organization, according to information obtained by the House Democrats.Rep.
Taylor has voiced her support for the expansion as a move toward rectifying long-standing racial and economic disparities. "Expanding this program is a step toward closing the homeownership gap between Black and white households in our state," Rep. Taylor told the House Democrats.
"It’s not the only solution to the systemic inequities caused by centuries of discrimination, but it is meaningful progress."Despite the formal prohibition of racially discriminatory practices like redlining back in 1968, the legacy of those policies still casts a shadow on the present. Rep.
Taylor addressed this ongoing challenge, stating, "The policies may have changed fifty years ago, but the harm to individuals, and communities continues," she explained. "We are not immune to racism or discrimination—but I believe Washington is committed to correcting the injustices of the past," as per the House Democrats. This sentiment echoes the need for continued effort against endemic inequality within the housing market, a place marked by low inventory, and escalating prices that often leave marginalized communities on the outside looking in.
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