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WashingtonHB 16962025-2026 Regular SessionHouseWALLET

Modifying the covenant homeownership program.

Sponsored By: Jamila Taylor (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Down payment loans with possible forgiveness

The law creates special purpose credit programs that offer loans for down payments and closing costs. Starting July 1, 2024, at least one program provides this help. Loans can be combined with other assistance. You must repay the loan when you sell the home. If your loan began after enactment and your income was 80% or less of area median at origination, the loan can be fully forgiven after it has been outstanding at least five years.

Who qualifies for covenant homeownership help

You must be a first-time homebuyer. Your household income must be at or below 120% of the area median income for the county. You qualify if you lived in Washington on or before April 11, 1968 and were or would have been excluded by a racially restrictive covenant, or you are a descendant of such a person. The commission may also tailor programs by race, national origin, or sex if the study identifies a disadvantaged class and the board finds it necessary.

How homeownership program funds are used

Up to 1% of contract funds may be used for administration, including the study, data, and reporting. Up to 1% may be used for targeted education, counseling, and outreach to BIPOC and other marginalized communities. The rest must pay only for down payment and closing cost help. Programs run together with the commission’s housing finance programs. The commission sets and can update program rules and eligibility.

Oversight committee created and supported

The Department of Financial Institutions creates an oversight committee for the program. Members include housing counselors, lenders, real estate professionals, nonprofit developers, and lawmakers from across the state. Nonlegislative terms are three years and legislative terms are two years; the committee meets at least quarterly, with its first meeting and chair by October 1, 2023. Members can be reimbursed for expenses, and DFI may provide a stipend to low‑income or lived‑experience members.

Regular reports and data sharing

By December 31, 2025, and every year after, the Housing Finance Commission reports to lawmakers and posts results online, including who qualified, how much help was given, where homes are, and outreach efforts. Commerce and the commission must give the oversight committee and DFI requested records, and confidential information stays private. Commerce and the commission report quarterly to the oversight committee on education, outreach, and assistance results. DFI provides staff help and expertise and coordinates outreach and financial education. Commerce reimburses DFI’s oversight costs from the Covenant Homeownership Account when funded by the legislature.

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Sponsors & Cosponsors

Sponsor

  • Jamila Taylor

    Democratic • House

Cosponsors

  • Adam Bernbaum

    Democratic • House

  • Alex Ramel

    Democratic • House

  • Amy Walen

    Democratic • House

  • April Berg

    Democratic • House

  • Beth Doglio

    Democratic • House

  • Brandy Donaghy

    Democratic • House

  • Brianna Thomas

    Democratic • House

  • Chipalo Street

    Democratic • House

  • Chris Stearns

    Democratic • House

  • Cindy Ryu

    Democratic • House

  • Davina Duerr

    Democratic • House

  • Debra Entenman

    Democratic • House

  • Edwin Obras

    Democratic • House

  • Gerry Pollet

    Democratic • House

  • Greg Nance

    Democratic • House

  • Jake Fey

    Democratic • House

  • Janice Zahn

    Democratic • House

  • Julia Reed

    Democratic • House

  • Julio Cortes

    Democratic • House

  • Kristine Reeves

    Democratic • House

  • Larry Springer

    Democratic • House

  • Lillian Ortiz-Self

    Democratic • House

  • Lisa Parshley

    Democratic • House

  • Liz Berry

    Democratic • House

  • Mari Leavitt

    Democratic • House

  • Mary Fosse

    Democratic • House

  • Mia Gregerson

    Democratic • House

  • Monica Jurado Stonier

    Democratic • House

  • Natasha Hill

    Democratic • House

  • Nicole Macri

    Democratic • House

  • Osman Salahuddin

    Democratic • House

  • Roger Goodman

    Democratic • House

  • Sharlett Mena

    Democratic • House

  • Sharon Tomiko Santos

    Democratic • House

  • Shaun Scott

    Democratic • House

  • Shelley Kloba

    Democratic • House

  • Steve Bergquist

    Democratic • House

  • Strom Peterson

    Democratic • House

  • Tarra Simmons

    Democratic • House

  • Timm Ormsby

    Democratic • House

  • Victoria Hunt

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 174 • No: 163

Senate vote • 4/14/2025

3rd Reading & Final Passage

Yes: 30 • No: 19

House vote • 3/6/2025

173 Couture Pg 7 Ln 18

Yes: 42 • No: 54 • Other: 2

House vote • 3/6/2025

3rd Reading & Final Passage

Yes: 57 • No: 39 • Other: 2

House vote • 3/6/2025

192 Griffey Pg 3 Ln 4

Yes: 45 • No: 51 • Other: 2

Actions Timeline

  1. Effective date 7/27/2025.

    4/22/2025House

  2. Chapter 143, 2025 Laws.

    4/22/2025House

  3. Governor signed.

    4/22/2025legislature

  4. Delivered to Governor.

    4/17/2025legislature

  5. President signed.

    4/16/2025legislature

  6. Speaker signed.

    4/15/2025legislature

  7. Third reading, passed; yeas, 30; nays, 19; absent, 0; excused, 0.

    4/14/2025House

  8. Rules suspended. Placed on Third Reading.

    4/14/2025House

  9. Placed on second reading by Rules Committee.

    4/9/2025House

  10. Passed to Rules Committee for second reading.

    4/8/2025House

  11. Minority; do not pass.

    4/7/2025House

  12. WM - Majority; do pass.

    4/7/2025House

  13. Referred to Ways & Means.

    3/27/2025House

  14. And refer to Ways & Means.

    3/26/2025House

  15. Minority; do not pass.

    3/26/2025House

  16. HSG - Majority; do pass.

    3/26/2025House

  17. First reading, referred to Housing.

    3/10/2025House

  18. Third reading, passed; yeas, 57; nays, 39; absent, 0; excused, 2.

    3/6/2025House

  19. Rules suspended. Placed on Third Reading.

    3/6/2025House

  20. 2nd substitute bill substituted.

    3/6/2025House

  21. Rules Committee relieved of further consideration. Placed on second reading.

    3/4/2025House

  22. Referred to Rules 2 Review.

    2/28/2025House

  23. APP - Executive action taken by committee.

    2/27/2025House

  24. Minority; do not pass.

    2/27/2025House

  25. APP - Majority; 2nd substitute bill be substituted, do pass.

    2/27/2025House

Bill Text

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