HUD Opens Civil‑Rights Probe of Washington State Covenant Homeownership Program
The Trump administration’s Department of Housing and Urban Development has opened a civil‑rights investigation into Washington state’s Covenant Homeownership Program, alleging it may provide subsidized mortgage assistance based on race in violation of federal fair‑housing law. HUD’s Office for Fair Housing and Equal Opportunity notified the Washington State Housing Finance Commission that it is scrutinizing the program, which was created in 2023 to address the legacy of racially restrictive covenants and offers first‑time buyers zero‑interest loans of up to $150,000 for down payments and closing costs, repayable only at sale or refinancing. According to HUD, applicants can earn up to 120% of area median income and must have a parent or grandparent of Hispanic, Native American, Pacific Islander or Indian descent, while people of European, Japanese, Arab or Jewish ancestry appear not to qualify, and access is routed through a commission‑run hotline that screens eligibility. HUD Secretary Scott Turner declared that “DEI is dead at HUD” and vowed to “vigorously enforce the Fair Housing Act,” framing the case as a challenge to what he calls illegal racial and ethnic preferences even as Washington lawmakers defend the program as a remedy for generations of discrimination including redlining and race‑based covenants. The probe will test how far states can go in crafting race‑conscious homeownership aid and is already feeding online battles over whether such programs are corrective justice or unlawful reverse discrimination.
📌 Key Facts
- HUD’s Office for Fair Housing and Equal Opportunity has launched a formal investigation into Washington’s Covenant Homeownership Program.
- The program offers zero‑interest loans up to $150,000 for down payments and closing costs to first‑time buyers, with repayment due only when the home is sold or refinanced.
- HUD says eligibility includes an ancestry requirement tied to having a parent or grandparent of Hispanic, Native American, Pacific Islander or Indian descent, with an income cap at 120% of area median income.
- HUD Secretary Scott Turner said “DEI is dead at HUD” and pledged to enforce the Fair Housing Act against what he describes as illegal racial and ethnic preferences.
📊 Relevant Data
In Washington State, the homeownership rate for White families is 62%, compared to 28% for Black families in recent census reports.
Homeownership by race Seattle and King County 1970-2022 — University of Washington
In Washington State, mortgage denial rates for Black applicants in majority-minority neighborhoods are 80% higher (9%) compared to White applicants, even when controlling for income.
2023 State of Black Homeownership in the Seattle-Tacoma Metropolitan Statistical Area — Local Initiatives Support Corporation (LISC)
As of 2022, White non-Hispanic residents make up 65.1% of Washington State's population, compared to 4.8% Black, 2.1% American Indian and Alaska Native, 10.4% Asian, and 13.7% Hispanic or Latino.
Washington - U.S. Census Bureau QuickFacts — U.S. Census Bureau
Among families earning more than $150,000 annually in Washington State, 88% of White families are homeowners compared to 77% of Black families, with the gap widening at lower income levels.
Homeownership by race 1970-2022 - Washington State — University of Washington
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