Washington State’s new race-based homeownership assistance program offers zero-interest loans up to $150,000 to non-white applicants, sparking intense debate over its legal and ethical implications.
Key Takeaways
- Washington’s Covenant Homeownership Program provides 0% interest loans up to $150,000 specifically targeted to racial groups historically affected by housing discrimination.
- Eligible applicants must belong to specific racial groups (Black, Hispanic, Native American, Asian American, etc.), have ancestral ties to Washington before April 1968, and meet income requirements.
- The program excludes certain groups like Jewish Americans who also faced historical discrimination, citing “limited data on lasting impacts.”
- Critics argue the program constitutes reverse discrimination by prioritizing applicants based on race rather than individual circumstances.
- The initiative aims to address significant homeownership disparities, with only 32% of Black and 48% of Hispanic households owning homes compared to 68% of white households in Washington.
Program Details and Eligibility Requirements
The Covenant Homeownership Program offers zero-interest loans of up to $150,000 for down payments and closing costs to eligible first-time homebuyers. Washington State Governor Bob Ferguson signed into law prioritizing down payment assistance for first-time home buyers if they meet a certain skin color. The program specifically targets individuals or descendants of those who faced housing discrimination prior to the 1968 Fair Housing Act. Eligibility requirements include household incomes below 100% of the area median income (recently expanded to 120%), first-time homebuyer status, and belonging to specific racial categories including Black, Hispanic, Native American, Alaska Native, Native Hawaiian, Pacific Islander, Korean, or Asian American.
Additionally, applicants or their ancestors must have lived in Washington state before April 1968. The program is funded through a $100 fee collected on recorded real estate documents throughout the state. Due to limited funding, the program can currently support approximately 130 down payment loans at the maximum amount. Borrowers are required to repay the loans when they sell or refinance their properties, though recent changes include loan forgiveness after five years for households earning 80% or less of the area median income.
WASHINGTON STATE
"Governor Bob Ferguson just signed into law changes to the most outrageous, illegal reparations program in the entire country. It now GIFTS down payments, averaging $120,000, to black first-time homebuyers without ANY proof of direct housing discrimination." pic.twitter.com/8azJk76nQS
— Republicans for Asotin County (@AsotinCountyGOP) April 28, 2025
Addressing Historical Housing Discrimination
The program was created to address significant racial disparities in homeownership that persist in Washington state. Current statistics show only 32% of Black residents and 48% of Hispanic residents own homes, compared to 68% of white residents. These disparities have roots in historical discriminatory practices such as redlining, restrictive covenants, and other barriers that prevented non-white families from building generational wealth through property ownership. According to state officials, the program has already helped over 200 families in more than 20 counties access homeownership.
Supporters argue the program represents a targeted approach to remedy specific historical injustices that continue to affect certain communities disproportionately. By focusing on groups with documented lower homeownership rates, proponents suggest the initiative addresses ongoing economic disadvantages that stem from past discriminatory policies.
Controversial Exclusions and Legal Questions
The program has drawn criticism for its selective inclusion criteria, particularly for excluding other groups that also faced historical housing discrimination. Jewish Americans, for example, are not eligible despite documented discrimination in housing markets. When questioned about this exclusion, the Washington Housing Finance Commission offered an explanation that has further fueled controversy.
Critics argue that providing financial advantages based on race rather than individual circumstances constitutes reverse discrimination and may violate equal protection laws. They contend that current residents should not be penalized or rewarded based on historical circumstances they had no control over. Legal experts question whether the program can withstand judicial scrutiny, particularly given recent Supreme Court decisions limiting race-conscious policies in other domains.
Similar Programs Emerging Across States
Washington’s initiative appears to be part of a broader trend of state-level housing assistance programs with controversial eligibility criteria. California is exploring a similar program called “California Dream for All,” which offers up to 20% of a home’s value or $150,000 in down payment assistance. That program has generated additional controversy by including undocumented immigrants among eligible applicants. As states experiment with targeted housing assistance, the legal and ethical debates surrounding these programs continue to intensify.
With Washington’s program now implemented, its impacts and legal standing will likely face ongoing scrutiny from both supporters and critics. The limited scope of approximately 130 loans may restrict its immediate impact on broader homeownership disparities, while constitutional challenges could determine whether such race-conscious programs remain viable approaches to addressing historical inequities in housing.
Sources:
Washington state’s homeownership program offers loans based solely on race
Woke governor signs law providing assistance to first-time home buyers, provided they aren’t White
