Lawsuit Filed Against Washington Housing Commission for Accusations of Racial Discrimination
A civil rights group is taking legal action against Washington state in federal court regarding a homeownership program that provides assistance only to individuals belonging to specific racial categories. The lawsuit, Foundation Against Intolerance and Racism Inc. (FAIR) v. Walker, was filed on Oct. 29 in federal district court in Seattle.
The defendant named in the lawsuit, Steve Walker, serves as the executive director of the Washington State Housing Finance Commission (WSHFC).
Established by the Washington Legislature in 1983, the WSHFC introduced the Washington Covenant Homeownership Program in July 2024. The program offers down payment and closing cost assistance through a zero-interest secondary mortgage loan, to be repaid from the proceeds of the home’s sale or refinancing.
However, eligibility for the program is restricted to individuals of specific racial backgrounds, including black, Hispanic, Native American, Alaskan native, Native Hawaiian, Korean, or Asian Indian descent. Eligible applicants must also demonstrate a familial connection to the state prior to April 1968.
The complaint notes that individuals not belonging to these preferred racial categories such as Japanese-Americans, Jewish-Americans, Arab-Americans, and Caucasian-Americans, are deemed ineligible for the program.
Enacted in April 1968, the federal Fair Housing Act signed by President Lyndon Johnson prohibits housing discrimination based on race and other factors.
Washington Governor Jay Inslee cited the state’s Covenant Homeownership Act as a corrective measure for past injustices. The act, signed into law in May 2023, directed the commission to establish programs aimed at reducing racial disparities in homeownership in the state through down payment and closing cost assistance.
Upon signing the legislation, Governor Inslee remarked, “It is a great day for Washington state and a great day for justice,” acknowledging the historical barriers faced by individuals of non-white heritage in accessing housing opportunities.
FAIR, represented by Pacific Legal Foundation (PLF), asserts that the program violates the Equal Protection Clause of the 14th Amendment to the U.S. Constitution. A member of FAIR meeting the program’s criteria except for identifying as “European-American” highlights the discriminatory nature of the system.
While the program mandates proof of race, it does not require applicants to demonstrate personal experiences of racial discrimination in housing. This disconnect raises questions about the program’s intended purpose of redressing past discriminatory practices.
Commenting on the issue, PLF attorney Andrew Quinio emphasized that government entities like the state of Washington and the Washington Housing Finance Commission cannot categorize or disadvantage individuals based on race.
In defense of the program, WSHFC communications director Margret Graham cited rigorous research conducted as per the 2023 state law, which mandated a study on past housing discrimination in Washington state.
Designed to benefit families historically excluded from housing opportunities due to discriminatory policies predating the federal Fair Housing Act, the program seeks to address ongoing impacts of past housing discrimination.
