By Aaron Allen, The Seattle Medium
Washington’s Covenant Homeownership Program, a key initiative aimed at repairing the legacy of housing discrimination, is getting a major boost. House Bill 1696, signed into law by Governor Bob Ferguson, expands and modifies the program that first passed in the Legislature last year. Sponsored by Rep. Jamila Taylor, the bill increases income eligibility, introduces loan forgiveness, and updates oversight structures to ensure broader access and stronger accountability.
According to Taylor, the Covenant Homeownership Program offers zero-interest loans helping first-time homebuyers with closing cost and down payments. To date, the program has enabled over 200 families in more than 20 counties to access homeownership.
The updated law raises the income threshold for eligibility from 100% to 120% of area median income (AMI) and introduces loan forgiveness for households earning 80% AMI or less, provided they remain in the home for at least five years. The law also updates the program’s Oversight Committee by requiring representation from a nonprofit housing counseling organization, ensuring more community-oriented input in how the program is administered.
“I’m pleased with the success of getting it passed,” says Taylor. “Obviously, I would have preferred the original version of the trailer bill where we would have 140% as the eligibility criteria and that all participants would be eligible for the loan forgiveness, but I do think it’s a success that we got this piece of legislation over the line, especially in this era where at the federal level there’s so many attacks on Black people in particular and policies that support reparative justice.”
Taylor emphasized the deep historical roots behind the program’s goals and the necessity of addressing how systemic racism has blocked generations of Black and Brown families from accessing homeownership and building wealth.
“This fight is important so that we can have Black folks participating, Black folks and other people of color because this is not just benefiting Black folks, Latino folks, Indigenous folks, and if you think about it, Native Americans are the second largest group benefiting from this piece of policy,” says Taylor. “But folks of color in particular have not been able to keep up in homeownership in Washington State. And if we’re thinking about having an inclusive economic future, we’re thinking about repairing injustices and how we’ve been shut out because of redlining and racially restrictive covenants. We have a duty to the legacy of repairing the harm that was done to our grandparents.”
Taylor uses the term “Tulsa moment” referring to the success of Black communities like Tulsa, Oklahoma during the early part of the 20th century, as a measuring stick in Black communities and Black leadership, in the effort to address the injustices and rebuild Black communities through homeownership to ensure the opportunities for marginalized communities to build economically successful futures.
“You will hear me say over and over the inclusive economy. This is where we cannot have a Tulsa moment because people see Black success that they want to destroy it all. We cannot see that. We cannot have that,” says Taylor. “We must charge ahead and make sure that everyone has the chance, has the opportunity, real opportunity. One of the challenges that we have in telling people about this program is the first thing some of these folks say, ‘This is too good to be true’. That tells you how ingrained the opportunities that are promised to us are constantly snatched away from us.”
The disparities the program aims to address are stark. In Washington state, only 34% of Black households own their homes, compared to 69% of white households. These disparities persist across income levels but are most significant among households earning under $50,000 per year.
“Expanding this program is a step toward closing the homeownership gap between Black and white households in our state,” said Rep. Taylor. “It’s not the only solution to the systemic inequities caused by centuries of discrimination, but it is meaningful progress.”
Among those helping families navigate the system is Jessica Talton, a mortgage industry professional with over 12 years of experience, who emphasized how significant these enhancements are for affordability.
“In my 12 years of being in the mortgage industry, I’ve never seen a program that provided 20% down and also covered closing costs and there are other grant programs that have been available that we’ve been able to layer and couple with these programs that also are helping to make homes affordable and to try to basically address some of those issues and help more people,” says Talton. “So, they’re going to be increasing the income limit from 100% area median income to 120% and that is going to help more families qualify.”
“They also are passing the bill that if you make 80% or below the area median income for five years, the program is forgiven, so you don’t have to pay back that 20% in closing cost as long as you live in the home for 5 years and make 80% or below the area median income,” Talton continued. “So those are some of the most recent um improvements that were made to the bill, and I mean, I think that is a great start.”
The Urban League of Metropolitan Seattle (ULMS) is also a key player in implementing and promoting the program. Linda Taylor, Housing Director for ULMS, highlighted how her team helps families access the opportunity and the long-term wealth it creates.
“This program is very vital,” says Taylor. “It will allow more people to purchase homes and it will create additional generational wealth. More people will qualify and that’s a great thing. We (the Urban League) help make the community aware of this program and aware of the qualifications and we assist them in qualifying.”
“Building generational wealth is something that we must do, that we must be aware of, and that everyone that qualifies should take advantage of,” says L. Taylor. “The Urban League is always here to help, and we produce the first-time home buyer program that assists community members in qualifying. The first-time home buyers’ program is a 5-hour program that you must take in order to qualify. You can find that at the Urban League on every Saturday.”
