Breaking Barriers: Washington REALTORS' Historic Win for Equitable Homeownership

On May 8th, Washington REALTORS, with Vice President-Elect of Government Affairs for Washington REALTORS Eddie Chang in attendance, achieved a significant legislative win with the signing of HB 1474 by Governor Inslee. This new bill establishes the Covenant Homeownership Account and Program, aiming to rectify historical discrimination and inequities in homeownership. By addressing the inability of marginalized communities to acquire generational wealth due to racial covenants, this program paves the way for a more inclusive and equitable future in real estate.

The Covenant Homeownership Program

The centerpiece of HB 1474 is the Covenant Homeownership Program, which will be funded through a $100 fee added to every real estate transaction recorded with county auditors. Starting in July 2024, qualified first-time homebuyers will gain access to down payment and closing cost assistance loans from this account, to be repaid upon the home’s future sale. Through this, historically marginalized communities will be able to overcome many of the obstacles which have restricted access to homeownership that previous generations have experienced.

Qualifications for Homebuyer Loans

To be eligible for these loans, potential homebuyers must meet specific criteria. Firstly, they must be purchasing their first home. Secondly, they must belong to historically marginalized groups, those who have been affected by racial covenants, and with an income less than 100% of the area’s median income. Lastly, applicants must be residents of Washington State or descendants of residents who lived in the state before 1968.

Eddie Chang's Perspective

Recognizing that homeownership is transitive to building generational wealth, HB 1474 seeks to address the disparities caused by racially restrictive real estate covenants. To that end, Eddie Chang spoke at the bill signing alongside SKCR Governmental Affairs Committee members. Eddie emphasized the significance of this legislation, stating, "We know homeownership builds generational wealth. This bill addresses the inability of many of our neighbors to acquire such wealth because of racially restrictive real estate covenants. HB 1474 will help families of historically marginalized communities to build a legacy of homeownership for current and future generations."

A Significant Milestone

The signing of HB 1474 marks a significant milestone in Washington's pursuit of equitable homeownership. With the establishment of the Covenant Homeownership Program, Washington REALTORS have proactively addressed the historical discrimination and inequities that have hindered marginalized communities. By supporting first-time homebuyers from these groups, the program sets a new precedent for diversity, equity, and inclusion in real estate, fostering a brighter future for all.