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A Step Towards Justice and Homeownership As of July 1, 2024, the Covenant Homeownership Program is officially open! This program, championed by the Housing Development Consortium, the Black Home Initiative, Rep. Jamila Taylor, Sen. John Lovick, and Rep. Frank Chopp, aims to address historical housing discrimination in Washington state. Passed with bipartisan support, the Covenant Homeownership Act creates a new pathway and funding source to help those affected by past discrimination achieve the dream of homeownership.
INFORMATION FOR HOMEBUYERS If you or your family have deep roots in Washington state (before 1968), you might be eligible for the Covenant Homeownership Program. For support, guidance, and financial assistance, call the Washington State Homeownership Hotline at 1-877-894-4663. Our team is ready to help you navigate this opportunity and beyond.
Frequently Asked Questions (FAQs)
About the Program
How does the Covenant Homeownership Program assist homebuyers? The program offers down payment and closing cost assistance in the form of a loan, secondary to the primary mortgage loan, with a 0% interest rate. This loan is repaid when you sell or refinance your home.
When does the program start? The Covenant Homeownership Program begins serving homebuyers in July 2024.
How do I apply? Simply call the Washington State Homeownership Hotline at 1-877-894-4663. There’s no separate application process. You’ll work with a Commission-trained lender to prequalify for a mortgage loan and establish your eligibility. If you’re not mortgage-ready yet, the hotline will provide free support to help you get there.
Who is eligible? Eligibility criteria include:
- Household income at or below 100% of the Area Median Income (AMI) (area look up tool)
- First-time homebuyer
- The homebuyer or a parent/grandparent/great-grandparent lived in Washington state before April 1968
- The pre-1968 resident must be Black, Hispanic, Native American, Alaska Native, Native Hawaiian, other Pacific Islander, Korean, or Asian Indian.
Why April 1968? The Fair Housing Act, which made racial discrimination in housing illegal, was passed in April 1968. Despite the law, discrimination persisted, but the state no longer had an official role in it.
What if I’m not eligible? No worries! There are other support programs available. Call the Washington State Homeownership Hotline at 1-877-894-4663 for information tailored to your needs. Most homebuyers earning under $180,000 a year can access financial assistance through the Housing Finance Commission’s down payment assistance programs.
Where does the funding come from? Starting in January 2024, a $100 document recording fee for real estate transactions will fund the program, projected to generate between $75 million and $100 million annually.
Oversight and Accountability The Washington State Housing Finance Commission oversees the program, with accountability ensured by the Covenant Homeownership Program Oversight Committee formed by the Department of Financial Institutions (DFI). An annual report will be submitted to the legislature to track progress.
ABOUT THE COVENANT HOMEOWNERSHIP STUDY In March 2024, the National Fair Housing Alliance released a detailed study outlining the framework for the Covenant Homeownership Program, confirming the ongoing impact of housing discrimination and recommending specific assistance measures.
Why is this Act needed? Homeownership is vital for building wealth and community stability. Yet, only 49% of BIPOC households in Washington are homeowners, compared to 68% of non-Hispanic white households. This Act aims to rectify these disparities through targeted assistance.
Want to learn more? Call the Washington State Homeownership Hotline at 1-877-894-4663 for more details and to see how you can benefit from this groundbreaking program.
Let’s work together to turn the dream of homeownership into a reality for everyone in Washington!
Link to program can be found at WSHFC Covenant Homeownership Program
