Washington state recently launched the Covenant Homeownership Program, offering loans of up to $150,000 with 0% interest to prospective homeowners based solely on their race. Eligibility includes household income below 100% of the area median income, being a first-time homebuyer, and having a family member who lived in Washington before 1968 and belongs to specific racial or ethnic groups. The program aims to address ongoing discrimination despite the Fair Housing Act. Other groups, like Jewish residents, were excluded due to limited data.
The program aims to address racial homeownership disparities in Washington, where only 32% of Black and 48% of Hispanic individuals own homes compared to 68% of White people. Funding for the program comes from a $100 fee on real estate documents. Despite collecting over $20 million since January, the state may not reach the projected $75 to $100 million annually due to a stagnant housing market.
Other states, such as California, are also implementing housing assistance programs. A bill in California passed by the state Senate allows undocumented immigrants to apply for the “California Dream for All” program, providing up to 20% or $150,000 in down payment assistance for first-time homebuyers. This legislation reflects efforts to address disparities in homeownership across different racial and ethnic groups.
The Covenant Homeownership Program is seen as a step towards closing the racial homeownership gap by targeting historically marginalized groups in Washington. Despite concerns about funding and exclusion of other discriminated groups, the program represents a unique approach to address ongoing housing discrimination and disparities in homeownership.
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