"The Covenant Homeownership Program provides a zero-interest secondary loan to help cover down payments and closing costs, widely viewed as the first explicitly race-conscious housing finance program of its kind."
"To qualify, borrowers must earn no more than 120% of the area median income and have a parent or grandparent who is Black, Hispanic, Native American, Pacific Islander or of Indian descent."
"HUD stated that if it finds reasonable cause to believe the commission has violated or intends to violate civil rights laws, it may file discrimination charges or refer the case to the Department of Justice for enforcement."
The Covenant Homeownership Program, launched in 2024, provides zero-interest secondary loans for down payments and closing costs to eligible borrowers. It is the first race-conscious housing finance program, requiring borrowers to earn no more than 120% of the area median income and have a parent or grandparent from specific racial backgrounds. Loans may be forgiven after five years for low-income borrowers. However, HUD raised concerns about potential civil rights violations, stating that the program may discriminate based on race and ancestry, leading to possible legal actions.
#covenant-homeownership-program #housing-finance #racial-eligibility #washington-state #civil-rights
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