Judge upholds Washington state's special purpose credit program

"The program specifically targets Black, Latino, Native American, Alaskan Native, Native Hawaiian, Pacific Islander, Korean and Asian Indian families. FAIR did not immediately respond to HousingWire's request for comment. In his ruling, Chun emphasized that Washington state has a compelling interest in addressing a present-day racial disparity in homeownership. He cited the state's historical participation both active and passive in acts of racial discrimination, including redlining, racially restrictive covenants, exclusionary zoning and government takings. His conclusion was supported by a WSHFC-commissioned study."

"The National Fair Housing Alliance (NFHA) welcomed the decision, calling it a critical affirmation that states can adopt narrowly tailored programs to remedy the well-documented racial harms created by government action. Decades of documented discrimination have created the inequities we see in today's housing and credit markets, Lisa Rice, NFHA president and CEO, said in a statement. Special Purpose Credit Programs are lawful, effective, and essential to ensuring that all people can fairly access safe and affordable credit."

A Washington state Special Purpose Credit Program targets Black, Latino, Native American, Alaskan Native, Native Hawaiian, Pacific Islander, Korean and Asian Indian families to address racial homeownership disparities. A judge found the state has a compelling interest in remedying present-day gaps in homeownership, citing historical participation in redlining, racially restrictive covenants, exclusionary zoning and government takings, and relying on a WSHFC-commissioned study. The court rejected a challenge that exclusion from the program harmed opponents, noting other state housing options remain available. The National Fair Housing Alliance praised the ruling and highlighted SPCP benefits and economic impacts.

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