U.S. Department of Housing & Urban Development
03/24/2026 | Press release | Distributed by Public on 03/24/2026 12:58
Tuesday, March 24, 2026HUD Launches Fair Housing Investigation into Washington State’s Covenant Homeownership Program
Washington, DC - The Department of Housing and Urban Development's (HUD) Office for Fair Housing and Equal Opportunity (FHEO) notified the Washington State Housing Finance Commission that it has launched an investigation into the state's Covenant Homeownership Program, which HUD believes may violate the Fair Housing Act.
In 2023, the Commission announced a "Racial Equity Strategy Plan" to advance "antiracist priorities." One year later the Commission launched the Covenant Homeownership Program, its first-ever openly race-based housing finance program.
"DEI is dead at HUD. Those who ignore the law and violate the rights of Americans for political purposes will not continue," said Secretary Scott Turner. "As HUD Secretary, I will not stand for illegal racial and ethnic preferences that deny Americans their right to equal protection under the law. HUD will work to ensure Washington state follows the law and provides equal opportunity for all citizens seeking assistance under the Commission's programs. Under President Trump's leadership, HUD will vigorously enforce the Fair Housing Act and ensure all Americans have an equal shot at the American Dream."
The Covenant Homeownership Program offers downpayment and closing cost assistance for first-time homebuyers through a zero-interest, secondary loan on a home mortgage. Applicants do not need to be low income, as the income ceiling is 120% of the area median income. Low-income borrowers qualify for complete loan forgiveness after owning the house for five years. To qualify for the program, applicants must have a parent or grandparent of black, Hispanic, Native American, Pacific Islander, or Indian descent. Persons of European, Japanese, Arab, or Jewish ancestry do not appear to qualify.
HUD's investigation fulfills President Trump's promises to protect the civil rights of all Americans and to ensure affordable housing that is free from unlawful discrimination for all Americans. Read the full letter notifying the Washington State Housing Finance Commission of HUD's investigation here.
Follow @SecretaryTurner on X, FB, and Instagram.
U.S. Department of Housing & Urban Development published this content on March 24, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on March 24, 2026 at 18:58 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]