A program through the Washington State Housing Finance Commission is under investigation by the Department of Housing and Urban Development (HUD) for potentially violating the Fair Housing Act.
The commission’s Covenant Homeownership Program was passed into state law in 2023 to address the history of housing discrimination due to racially restrictive real estate covenants in Washington state. HUD claims the law, which had been signed into effect by then-Governor Jay Inslee, is a form of housing discrimination.
“DEI is dead at HUD. Those who ignore the law and violate the rights of Americans for political purposes will not continue,” HUD Secretary Scott Turner said in a press release announcing the investigation. “As HUD Secretary, I will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law.”
When reached by Scotsman Guide, Margret Graham, communications director for the commission, said it will respond to HUD’s requests for information when received.
“The Washington State Legislature created the Covenant Homeownership Program with bipartisan support after an extensive stakeholder and community engagement process and it is based on rigorous, independent research by a national firm,” Graham commented.
She added that along with the program being investigated, the commission “has an array of other programs offering home loans and downpayment assistance for all low- and moderate-income homebuyers, so that everyone can be supported on their homeownership journey.”
HUD Assistant Secretary Craig Trainor sent a letter to the commission on Tuesday stating that publicly available information about the commission’s Covenant Homeownership Program “strongly suggests that unlawful discrimination is occurring and, therefore, warrants investigation.”
Trainor claimed the program’s “munificent terms” are not for everyone. He referred to George Orwell’s “Animal Farm,” the allegorical novella from 1945 that explored themes of revolution, corruption and totalitarianism.
“In the Commission’s view, it appears that some Washingtonians ‘are more equal than others.’ This government-sponsored housing experiment appears to dole out spoils based on race and ancestry,” he stated.
Trainor claimed that under the program only applicants with a Black, Hispanic, Indigenous, Pacific Islander or Asian Indian parent or grandparent can qualify.
“The Commission, thus, requires ‘documentation’ establishing that the applicant has the correct racial heritage,” Trainor stated. “Washington residents of European, Japanese, Arab, and Jewish ancestry — no matter their income — appear to be ineligible for the program.”
Trainor told the commission he has directed HUD’s Office of Special Investigations to determine the extent to which the commission has violated, or intends to violate, relevant statutes.
Upon completion of its investigation, Trainor said HUD’s Office of Fair Housing and Equal Opportunity “may file a complaint against the Commission for discrimination based on race or national origin under the applicable statutes.” This could lead to HUD filing charges of discrimination, or referring the matter to the U.S. Department of Justice for further enforcement.
