The Department of Housing and Urban Development (HUD) has launched an investigation into Washington State’s Covenant Homeownership Program, which agency believes may be in violation of the Fair Housing Act.
According to HUD, the Washington State Housing Finance Commission announced a “Racial Equity Strategy Plan” in 2023 designed to advance “antiracist priorities.” One year later the Commission rolled out the Covenant Homeownership Program, which HUD defined as an “openly race-based housing finance program.”
The Covenant Homeownership Program provides downpayment and closing cost assistance for first-time homebuyers through a zero-interest, secondary loan on a home mortgage. Applicants do not need to be low income, as the income ceiling is 120% of the area median income. Low-income borrowers qualify for complete loan forgiveness after owning the house for five years.
HUD noted that applicants who qualify for the program must have a parent or grandparent of Black, Hispanic, Native American, Pacific Islander, or American Indian descent. But Washington residents of European, Japanese, Arab, or Jewish ancestry are not cited as being eligible for the program.
“DEI is dead at HUD,” said Secretary Scott Turner. “Those who ignore the law and violate the rights of Americans for political purposes will not continue. As HUD Secretary, I will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law. HUD will work to ensure Washington State follows the law and provides equal opportunity for all citizens seeking assistance under the Commission’s programs. Under President Trump’s leadership, HUD will vigorously enforce the Fair Housing Act and ensure all Americans have an equal shot at the American Dream.”
0 Comments