In a recent interview with the Black Lens, Angela Smith, an outreach and engagement specialist with the Washington state Housing Finance Commission (WSHFC), provided an overview of the organization’s role in facilitating affordable housing opportunities. Smith has been actively involved in community outreach, a new initiative for the agency aimed at enhancing public awareness and engagement.
Washington state is taking a significant step toward addressing historical housing discrimination with the Covenant Homeownership Program. This initiative, spearheaded by the WSHFC, aims to provide financial assistance to those who have been historically excluded from homeownership opportunities due to past discriminatory practices.
The Covenant Homeownership Program was designed to address housing disparities resulting from discriminatory policies before 1968, when the Fair Housing Act was enacted. Before this law, racial covenants and redlining practices systematically denied communities of color the ability to purchase homes, preventing them from building generational wealth.
Recognizing these past injustices, Washington state legislators, including Rep. Jamila Taylor, worked to establish the Covenant Homeownership Program in HB 1474. The initiative officially launched in January 2024 and is expected to support homeownership for eligible applicants statewide.
To qualify for the program, applicants must meet several criteria:
- Be a first-time homebuyer, which means they have not owned a home in the past three years.
- Must reside in Washington state and occupy the purchased home.
- Income must be at or below 100% of the area median income (AMI), which varies by county. For instance, the AMI limit for King County is $147,000, while for Spokane County, it is $100,000.
- Have a documented familial connection to individuals who lived in Washington before 1968 and were affected by housing discrimination.
- Identify as part of a racial or ethnic group that historically faced discrimination in housing policies, including African American, Native American and Hispanic communities.
The program provides substantial financial assistance, covering up to 20% of the home’s purchase price or a maximum of $150,000. This assistance includes down payments and closing costs, reducing the overall loan burden for homebuyers.
Interested applicants must:
- Take a free homebuyer education workshop offered by trained lenders or nonprofit organizations.
- Work with a certified lender who is knowledgeable about the Covenant Homeownership Program.
- Provide documentation proving residency in Washington before 1968 and verification of racial or ethnic identity. Acceptable documents include birth certificates, school records, marriage certificates, obituaries and other historical records.
Advocates and legislators are pushing for additional improvements to the program. As of now, at least 250 families have purchased homes through the program, with approximately 180 being African American households. Native American and Hispanic applicants make up the next largest groups of beneficiaries.
The Covenant Homeownership Program is a groundbreaking initiative that directly addresses the historical injustices that have prevented communities of color from achieving homeownership.
For more information, potential applicants can visit the Washington State Housing Finance Commission’s website at wshfc.org/covenant or call the Washington State Homeownership Hotline at (877) 894-4663.