Washington’s new race-based housing program is triggering fierce backlash, raising explosive questions about fairness, discrimination, and taxpayer funding.
At a Glance
- Washington launched the Covenant Homeownership Program on July 1, 2024, offering 0% interest loans based on race
- The program targets discrimination victims before the 1968 Fair Housing Act
- Eligibility is restricted by race and ancestry, excluding certain groups
- Funding comes from a $100 fee on real estate documents
The Program’s Goals and Restrictions
Washington’s Covenant Homeownership Program aims to bridge racial homeownership gaps with controversial racial criteria. Focused on non-white homebuyers, the program provides zero-interest, forgivable loans up to $150,000. It targets families historically disadvantaged before the 1968 Fair Housing Act. Applicants must be first-time homebuyers with incomes below 100% of the area median income. Funding for the loans, usable for only about 130 borrowers, comes from a fee on recorded real estate documents.
Watch Fox News’s breakdown of the Covenant Homeownership Program at this video.
The program specifies eligibility based on racial identity, including Black, Hispanic, Native American, Alaska Native, Native Hawaiian, Pacific Islander, Korean, or Asian American applicants whose ancestors lived in Washington before April 1968. Critics argue the government is again choosing winners and losers based on race rather than real need.
Debates Over Reverse Discrimination
Critics argue that such race-based assistance creates unfair advantages, excluding those not responsible for past discrimination. Some claim it punishes individuals for their ancestors’ actions. The program recently expanded, raising income eligibility and allowing loan forgiveness after five years for lower-earning households. Nonetheless, it ignores other potentially disadvantaged groups like Jews, supposedly due to scarce data—a flimsy rationale that leaves many disenfranchised.
According to the Washington Housing Finance Commission, “the Covenant program’s initial eligibility criteria are intentionally narrowly tailored. While many racial, ethnic and religious groups in Washington were subject to unjust and egregious housing discrimination, the Covenant program considers not only this history but also its current impacts.”
Governor Ferguson’s signing of this law has brought intense scrutiny while setting off debates about whether favoring one race at a time of rampant economic inequality is justified. To some, the expansion feels like a misguided attempt at addressing historical wrongs without impartially assessing each family’s genuine need or capacity.
Where Other States Stand
Washington’s move comes amid broader discussions of housing equity. In California, the controversial “California Dream for All” bill could soon allow undocumented immigrants to qualify for down payment assistance—raising more questions about where citizenship, fairness, and taxpayer obligations collide.
Representative Taylor defended the Washington plan, saying, “Expanding this program is a step toward closing the homeownership gap between Black and white households in our state,” according to Louder with Crowder.
The Covenant Homeownership Program showcases audacious interventions in the housing market. While intended to address entrenched disparities, its rollout has amplified cries for equal treatment for all citizens. As debates rage on, critics warn that this program could set a dangerous precedent of trading one injustice for another.
