Washington Governor Jay Inslee recently signed House Bill 1696, which allocates forgivable housing loans with a preference for “black, indigenous, and people of color” (BIPOC).
The bill aims to address historical racial disparities in homeownership, a move critics are calling “lawlessness.”
The legislation expands the existing Covenant Homeownership Program, which was created in 2023 to assist historically marginalized communities affected by systemic racism in housing.
Under the new provisions, eligible borrowers can receive down payment and closing cost assistance, with loans being fully forgiven after five years if their income is at or below 80% of the area median income (AMI).
The AMI threshold for eligibility has been raised to 120%, benefiting a broader range of applicants.
Representative Jamila Taylor, who sponsored the bill, emphasized that homeownership is crucial for building generational wealth, particularly for communities of color that have historically been excluded from such opportunities.
She argued that increasing diversity in homeownership would strengthen communities and help address the current housing crisis.
However, critics, including Utah Senator Mike Lee, have challenged the bill’s constitutionality, citing the Fourteenth Amendment’s Equal Protection Clause.
Lee described the law as a clear violation, stating, “It’s not even a close question. This is lawlessness.” His comments reflect concerns that the bill may perpetuate discrimination under the guise of rectifying past injustices.
Governor Inslee defended the legislation, asserting that it is designed to combat the effects of racial redlining and promote equitable access to homeownership.
He expressed gratitude to those who contributed to the law’s passage, highlighting its importance in closing the racial homeownership gap in Washington state.
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