Bill > HB1696

This bill modifies the covenant homeownership program by making several key changes. First, it increases the income threshold for program eligibility from 100% to 120% of the area median income for the county where the home is located. The bill introduces a loan forgiveness provision for participants with household incomes at or below 80% of the area median income, allowing full loan forgiveness after five years. The legislation also updates the composition of the covenant homeownership program oversight committee, changing the requirement for a community-based organization representative to a nonprofit organization representative. The bill maintains the program's core purpose of reducing racial disparities in homeownership by providing down payment and closing cost assistance to eligible participants, particularly those affected by historical racial real estate covenants. The oversight committee will continue to review the program's activities, with the Washington State Housing Finance Commission responsible for designing and implementing special purpose credit programs. By July 1, 2024, the program must begin providing assistance, and annual reports will be submitted to legislative committees detailing the program's progress, including participant information and outreach efforts.