OLYMPIA— The House gave more Washingtonians a path towards home ownership with the passage HB 1696. Sponsored by Rep. Jamila Taylor (D-Federal Way), the bill modifies the 2023 Covenant Homeownership Program to expand eligibility so that more individuals and families who were historically harmed by housing-related discrimination can become homeowners.
“Homeownership is a gateway to building generational wealth, and it was largely closed to Black Americans and people of color for most of our country’s history,” said Rep. Taylor. “Passing the Covenant Homeownership Program was a huge milestone, but as with any new program, it needs a few tweaks to make it more effective and accessible.”
In 2023 the legislature passed HB 1474 to establish the Covenant Homeownership Program as an effort to help those impacted by historical discrimination. The program provides down payment and closing cost assistance for first-time homebuyers. To date, the program has helped buyers close on 247 homes in 20 counties with another 54 loans in the pipeline.
“Buying a home is tough right now,” Rep. Taylor said. “Bringing more diversity into the pool of homeownership builds stronger communities and is another solution in solving the current housing crisis in our state.”
The bill expands the Area Median Income (AMI) threshold to 120% of the AMI in the county where the home is located (up from 100%) and authorizes loan forgiveness for participants enrolled in a special purpose credit program who have a household income at or below 80% of the AMI for the county where the home is located after the loan has been outstanding for at least five years.
The bill passed the House with a vote of 57 to 39 on Thursday, March 6 and now heads to the Senate for consideration.